Q1 2022 Inotiv Inc Earnings Call
[music].
Speaker 1: Greetings. Welcome to Inative Inc's first quarter fiscal 2022 financial results conference call. At this time, all participants are in a...
Greetings.
And it took inc. First quarter fiscal 2022 financial results conference call.
At this time all participants are in a listen only mode.
Speaker 1: A question and answer session will follow the formal presentation.
A question and answer session will follow the formal presentation.
Speaker 1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Please note this conference is being recorded.
Speaker 1: I will now turn the conference over to your host, Callie Aul of the Equity Group. Thank you. Everybody back to their seats.
I will now turn the conference over to your host Kelly all of the equity group. Thank you you may begin.
Speaker 2: Thank you, Alex, and good afternoon, everyone. Inative Inc's first quarter fiscal 2022 financial results were released today after the market closed. A copy of the earnings release can be found in the investors section of the company's website at InativeCo.com.
Thank you Alex and good afternoon, everyone.
<unk> first quarter of fiscal 2022 financial results were released today after the market close.
A copy of the earnings release can be found in the investors section of the Companys website at <unk> Dot com.
Speaker 2: As a matter of formality, I need to remind you that 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 plans.
As a matter of formality I need to remind you that 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 plans.
Speaker 2: Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected.
Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected.
Speaker 2: Any such statements represent management's expectations as of today's date.
Any such statements represent management's expectations as of today's date.
Speaker 2: 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.
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.
Speaker 2: Please refer to the company's SEC filings for further guidance on this matter.
Please refer to the company's SEC filings for further guidance on this matter.
Speaker 2: Management also will discuss certain non-GAAP financial measures in an effort to provide additional information for investors. A definition of these non-GAAP measures and reconciliation to the most comparable GAAP measures is included in the company's financial results press release and corresponding Form 8-K.
Management also will discuss certain non-GAAP financial measures in an effort to provide additional information for investors.
<unk> of these non-GAAP measures and reconciliation to the most comparable GAAP measures is included in the company's financial results press release and corresponding form 8-K.
Okay.
Speaker 2: Joining us from the company this afternoon are Bob Leisure, President and Chief Executive Officer Beth Taylor, Chief Financial Officer and John Sagard, Chief Strategy Officer.
Joining us from the company. This afternoon are Bob Leisure, President and Chief Executive Officer.
Beth Taylor, Chief Financial Officer, and John <unk>, Chief Strategy Officer.
Speaker 2: Bob will begin with some opening remarks, after which Beth will present a summary of the company's financial results. Then we'll open the call for questions. Now it's my pleasure to...
I will begin with some opening remarks, after which we will present, a summary of the Companys financial results then we'll open the call for questions.
Now, it's my pleasure to turn the call over to Bob.
Speaker 3: Thank you, Kelly, and good afternoon to everyone. Thank you for joining us today.
Thank you Kelly and good afternoon to everyone. Thank you for joining us today.
Speaker 3: We're really pleased with the way we started fiscal 22. We've continued our momentum building and to a comprehensive provider, preclinical research services, while adding a very highly complementary research model platform to the strategic acquisition of Invego. Our full spectrum solutions now span two segments, discovery and safety assessment, or DSA, and research models and services, which we also refer to as the DSA.
We're really pleased with the way we've started fiscal 'twenty. Two we've continued our momentum building additive to a comprehensive provider preclinical research services.
Adding very highly complementary research model platform through the strategic acquisition of the V go.
Full spectrum solutions now span two segments discovery and safety assessment or DSA.
And research models and services, which we also refer to as RMS.
Speaker 3: The acquisition of Invigo was transformative to our company, and we have now grown from 240 employees in 2018 to over 2000 employees today. In addition, our revenue has grown from approximately $26 million in fiscal 2018 to a pro forma revenue of fiscal 2002-1 reflecting the acquisition of Invigo of approximately $395.8 million.
The acquisition of <unk> was transformative to our company and we have now grown from 240 employees in 2018.
Over 2000 employees today and.
In addition, our revenue has grown from approximately $26 million in fiscal 2018 to a pro forma revenue in fiscal 2000 to one reflecting the acquisition of <unk> of approximately $395 8 million.
Speaker 3: Since the start of the fiscal year, we've further bolstered our DSA capabilities through the acquisition of PLATO BioPharma in October of 2021, the purchase of integrated laboratory systems in January of 2022.
Since the start of the fiscal year, we further bolstered our DSA capabilities through the acquisition played a biopharma in October of 2021.
Purchase integrated laboratory systems in January of 2022.
Speaker 3: a new collaboration with Cinexa Life Sciences in January of 2022, and several ongoing investments in internal startups and capability.
A new collaboration with some extra life Sciences in January of 2022.
And several ongoing investments in internal startups and capabilities.
Speaker 3: Plato BioPharma provides our DSA segment with in vivo pharmacology research, drug discovery expertise in the areas of cardiovascular, renal, pulmonary and hepatic therapy.
Play Doh Biopharma provides our DSA segment with in vivo Pharmacology research drug discovery expertise in the areas of cardiovascular renal pulmonary and hepatic therapies.
Speaker 3: Plato's integrative approach to functional and physiological measurements, histological evaluations, and biomarker analysis complements our existing suite of services.
Play those integrative approach to functional physiological measurements style histological evaluations and biomarker analysis complements our existing suite of services.
Speaker 3: Plato's located near our Boulder, Colorado discovery ops.
Play those located near our Boulder, Colorado Discovery operation.
Speaker 3: Playdoh and Boulder operations are now both operating synergistically, and we are adding additional lease space.
Play Doh and Boulder operations are now both operating Synergistically and we're adding additional lease space.
Speaker 3: to both locations in order to support the strong demand we are currently seeing.
Both locations or to support the strong demand we are currently seeing.
Speaker 3: Integrated Laboratory Systems, or ILS, brings our DSA segment immediate scale genetic toxicology, building on the genetic toxicology assets we acquired in 2021 from Millipore Sigma's particle theory, US Williamson,
Integrated laboratory systems or iOS brings our DSA segment immediate scale genetic toxicology building on the genetic toxicology as it were.
Acquired in 2021.
From Millipore Sigma aspire reliance portfolio.
Speaker 3: We've essentially accelerated by a few years our in-house GenTalk startup with acquisition of ILS.
We've essentially accelerated by a few years our in house can talk startup with the acquisition of iOS.
Speaker 3: which adds two leased facilities with a total of 50,000 square feet, including a vivarium that is accredited by the Association for Assessment and Accreditation of Laboratory Animal Care.
Which adds two leased facilities with a total of 50000 square feet.
Clothing, a vivarium that is accredited by the association.
For assessment and accreditation of laboratory animal care.
Speaker 3: In addition to gaining expertise in genetic toxicology, in vivo and in vitro toxicology, pathology, molecular biology, bioinformatics, and computational toxicology.
In addition to gaining expertise genetic toxicology in vivo and in vitro toxicology pathology.
Molecular biology bioinformatics.
The computational toxicology services.
Speaker 3: we gain access to excellent talent in the vicinity of North Carolina's Research Triangle Park where ILS is located.
We gained access to excellent talent in the vicinity of North Carolina's Research Triangle Park or ILS is located.
Speaker 3: We're making further investments over the next two quarters to additionally expand capacity in the ILS facility.
We're making further investments over the next two quarters to additionally.
Additionally, expand capacity in the Iowa facility.
Speaker 3: Our collaboration with Cinexa Life Sciences will establish a Center of Excellence for Bio Therapeutics and Biomarkers at a recently leased facility in Rockville, Maryland, which is currently under construction.
Our collaboration with extra life Sciences will establish a center of excellence for Biotherapeutics Biomarkers at a recently leased facility in Rockville, Maryland, which is currently under construction.
Speaker 3: Under this collaboration, the biomarker pioneer Cinexa will further its international expansion in the lease laboratory space at our Rockville site while supporting INITIV in developing and delivering comprehensive GLP biomarker and biotherapeutic services.
Under this collaborate collaboration the biomarker pioneer some extra will further its international expansion at least laboratory space at our Rockville site, while supporting innovative in developing and delivering comprehensive G. O P biomarker and biotherapeutic services working together, we expect to achieve scale broaden our respective cut.
Speaker 3: Working together, we expect to achieve scale, broaden our respective customer bases, and capitalize on cross-selling opportunities.
Basic and capitalize on cross selling opportunities.
Speaker 3: We continue to make internal investments in our DSA business, including opening of the modern DMPK cell molecular biology laboratories at our St. Louis facility, which we opened in November of 2021.
We continue to make internal investments in our DSA business, including opening of modern day at BK settled molecular biology laboratories at our St. Louis facility, which we opened in November of 2021.
Speaker 3: first phase. Second phase will be opening next month.
First phase second phase would be opening next month.
Speaker 3: we are beginning to see the benefits of the new capabilities and capacities.
We are beginning to see the benefits of the new capabilities and capacity.
Speaker 3: We have continued to invest in our people, our infrastructure, and new systems and technology.
We have.
<unk> continued to invest in our people, our infrastructure and new systems and technologies.
Speaker 3: We believe these investments will augment future growth and enhance operating margins, while improving service for our clients.
We believe these investments will augment future growth and enhance operating margins, while improving service for our clients.
Speaker 3: The first quarter adjusted unallocated corporate GNA was approximately 7 million or 8.3% of revenue compared to 16.2% of revenue for the same period last year. We expect to see this figure decline as it continues to grow.
First quarter adjusted unallocated corporate G&A was approximately $7 million or eight 3% of revenue compared to 16, 2% of revenue for the same period last year and we expect to see this figure declined as we continued to grow.
Speaker 3: Moving to our RMS segment, our strategic acquisition of Indigo helped establish Inative as a Leader in research models at a time when strong industry demand has been outstripping supply, particularly in the category of non-human primates or NHP.
Moving to our RMS segment, our strategic acquisition of Indigo helped establish <unk> as a leader in research models.
At a time when strong industry demand has been outstripping supply, particularly particularly in the category.
Non human primates are in each piece.
Speaker 3: With the INVIGO purchase, we mitigated potential research bottlenecks, addressing a common concern of our customers, and established a new growth platform for additional service offerings. Given this view, and our design, we are pleased to be able to provide you with the latest information. Thank you.
With the in vivo purchase we mitigated potential research bottlenecks addressing a common concern of our customers and establish a new growth platform for additional service offerings.
Given this view and our desire to scale. The RMS business, we acquired two complementary businesses in January Orient Bio resource center or Ob RC.
Speaker 3: we acquired two complementary businesses in January , Orient BioResource Center, or OBRC,
Speaker 3: and the rabbit breeding and supply business of Robertson Services, Inc. or RSI.
And the breeding and supply business of Robinson services, Inc, or rguest buy.
Speaker 3: OBRC NHP facility is located on 500 acres of land near NHTSA's existing primate facility in Texas.
Oh, B or C and H P facility is located 500 acres of land you're in it is existing private facility in Texas.
Speaker 3: and brings meaningful opportunity to expand NHP boarding and breeding capacity to our RMS customers.
It brings meaningful opportunity to expand and HD boarding and breathing capacity to our Rms customers.
Speaker 3: Having been a customer of OBRC ourselves, we're very familiar with OBRC's high level of service and animal welfare.
Having been a customer of Ob or see ourselves, we're very familiar with obi or seats high level of <unk>.
First an animal welfare.
Speaker 3: RSI brings additional rabbit customers and market share to RMS.
Rsi brings additional rebate customers and market share to Rms.
Speaker 3: and will consolidate its production into existing and into facilities during 2020.
And we will consolidate its production to existing facilities during 2022.
Speaker 3: We believe RMS is well positioned for revenue growth and improved operational performance.
We believe RMS is well positioned for revenue growth and improved operational performance.
Speaker 3: By way of example, in fiscal Q3, we will begin closing two InVIGO sites and consolidate their operations into a third location in Denver, Pennsylvania, creating scale advantages at the site level.
By way of example in fiscal Q3, we will begin closing to indigo site and consolidate their operations into a third location in Denver, Pennsylvania.
<unk> scale advantages.
The site level.
Driving operating leverage.
Speaker 3: There's several common goals that are actions across both segments.
Several common goals that our actions across both segments.
Speaker 3: including listening to our customers and desire to provide them with a high-touch consultative service.
<unk> listening to our customers and the desire to provide them with a high touch Consultative Consultative service.
Speaker 3: building a comprehensive offering to meet our customers needs and control speed to market scaling our businesses
Building, a comprehensive offering to meet our customers' needs and control speed to market.
Scaling our business and strategic growth areas.
Speaker 3: cross-selling services and products to expand customer base.
Cross selling services and products to expand customer base.
Speaker 3: Respecting our employees, customers, and shareholders while encouraging a culture of playing to win and investing in people, technologies, and infrastructure and facilities to build a contemporary.
Respecting our employees customers and shareholders, while encouraging our culture playing to win.
And investing in people technology and infrastructure and facilities to build a contemporary scalable company.
Speaker 3: As we succeed in these areas, we plan to increasingly become our customers' primary research provider versus a secondary option and are handling a greater number of longer duration programs spanning the entire preclinical continuum versus delivering one-off services.
As we succeed in these areas, we plan to increasingly become our customers' primary research provider versus a secondary option.
And our handling a greater number of longer duration programs spanning the entire preclinical continuum versus delivering one off services.
Speaker 3: we achieved an excellent mix of internal and external growth in the first quarter of 2022, reflecting the successful execution of our strategy.
We achieved an excellent mix of internal and external growth in the first quarter of 2022, reflecting the.
The successful execution of our strategy.
Speaker 3: Looking ahead, near-term demand for our DFA and RMS services remains very robust.
Looking ahead near term demand for our DSA and RMS services remains very robust.
Speaker 3: as illustrated by our DSA strong book-to-bill ratio of 1.78.
As illustrated by our DSA strong book to Bill ratio of 1.78.
Speaker 3: quarter end DSA backlog of $104.6 million.
In the quarter, and DSA backlog of $104 $6 million over.
Speaker 3: Over the long term, we are continuing to target organic revenue growth.
Over the long term, we are continuing to target organic revenue growth.
Speaker 3: to the high, single to low double digits and adjusted EBITDA margins in the range of 18 to 20%.
To the high single to low double digits, and adjusted EBITDA margins in the range of 18% to 20%.
Speaker 3: With that, I'd like to turn it over to Beth Taylor, Chief Financial Officer.
With that I'd like to turn it over to Bert Taylor Chief Financial Officer.
Speaker 4: Thanks, Bob. Good afternoon. In the first quarter of fiscal 2022, our total revenue increased 370.4% to $84.2 million from $17.9 million in the comparable prior year period, driven by a $14.9 million increase in DSA revenue and $51.4 million of incremental RMS revenue.
Thanks, Bob Good afternoon.
In the first quarter two.
2022.
Our total revenue increased 374% to $84 $2 million from $17 $9 million in the comparable prior year period, driven by a $14 $9 million increase in DSA revenue.
And $51 4 million of incremental RMS revenue.
Speaker 4: RMS revenue reflected a partial quarter contribution from Inviso, which was acquired on November 5, 2021.
RMS revenue reflected a partial quarter contribution from <unk>, which was acquired on November 5th 2021.
Speaker 4: Our DSA segment revenue grew 83.2% year over year to $32.8 million, driven by $10 million of incremental service revenue from the acquisitions of Hisotox Lab, Boulder Biopath, Gateway Pharmacology, and Plato Biopharma, and $4.9 million of higher service revenue from internal growth.
Our DSA segment revenue grew 83, 2% year over year to $32 $8 million driven by $10 million of incremental service revenue from the acquisition of Hyster top slab Boulder bio path Gateway pharmacology and <unk> biopharma.
And $4 9 million of higher service revenue from internal growth.
Speaker 4: Our acquisition of Invego contributed $45.1 million of product revenue and $6.3 million of service revenue to our RMS segment this quarter. We did not have any RMS revenue in the comparable prior year period.
Our acquisition of N V go contributed $45 $1 million of product revenue and $6 $3 million of service revenue to our RMS segment this quarter.
We did not have any RMS revenue in the comparable prior year period.
Speaker 4: In the first quarter of fiscal 2022, our total gross profit increased to $19.3 million, or 22.9% of revenue. And that was up from $5.9 million, or 33% of revenue in the comparable prior year period.
In the first quarter of fiscal 2022, our total gross profit increase.
$19 $3 million or 22, 9% of revenue and that was up from $5 9 million.
It's 33% of revenue in the comparable prior year period.
Speaker 4: The decrease in the gross profit as a percent of revenue reflects the introduction of RMS products to our overall business mix starting this quarter. RMS products have lower gross profit as a percent of revenue compared to DSA services.
The decrease in the gross profit as a percent of revenue reflects the introduction of RMS product to our overall business mix, starting this quarter RMS products have lower gross profit as a percent of revenue compared to DSA services.
Speaker 4: In addition, total gross profit included non-cash amortization for a step up in the value of RMS inventory of $3.7 million for the acquisition of Invego, which has a negative impact on the gross profit percentage of 4.4%.
In addition, total gross profit included noncash amortization or a step up in the value of RMS inventory of $3 7 million for the acquisition of N V go which had a negative impact on the gross profit percentage of four 4%.
Speaker 4: Our DSA segment gross profit, excluding amortization of the intangible assets, was $12.2 million, or 37.2% of DSA revenue. And this is compared to $5.9 million, or 33% of DSA revenue in the comparable prior year period.
Our DSA segment gross profit excluding amortization of the intangible asset was $12 2 million or 37, 2% of DSA revenue and this is compared to $5 $9 million alright, 33% of DSA revenue in the.
The prior year period.
Speaker 4: The year-over-year increase in gross profit percentage was primarily driven by higher margins on incremental revenue from the acquisitions of Histotox Labs, Boulder Biopath, Gateway Pharmacology, and Plato Biopharma, and greater utilization of recently expanded capacity.
The year over year increase in gross profit percentage was primarily driven by higher margins on incremental revenue from the acquisitions of his two tough slab Boulder bio path gateway pharmacology and play Doh, Biopharma and greater utilization of recently expanded capacity.
Speaker 4: Our RMS segment gross profit, excluding amortization of the intangible assets, was $7.1 million, or 13.8% of RMS revenue.
Our RMS segment gross profit excluding amortization of intangible assets.
$7 $1 million or 13, 8% of RMS revenue.
Speaker 4: And again, the amortization of the step-up of value of inventory of $3.7 million for the acquisition of Invigo negatively impacted the RMS segment gross profit by 4.4%.
And again the.
Amortization of the step up value of inventory of 3.7.
$7 million for the acquisition of N V go negatively impacted the RMS segment gross profit by four 4%.
Speaker 4: Operating loss in the first quarter of fiscal 2022 totaled $33.6 million compared to operating income of $14,000 in the comparable prior year period, reflecting higher non-cash stock compensation expense of $23.8 million, which included $23 million of post-combination stock compensation expense recognized in connection with the Invego transaction.
Operating loss in the first quarter of fiscal 2022 totaled $33 $6 million compared to operating income of $14000 in the comparable prior year period, reflecting higher noncash stock compensation expense of $23 $8 million.
Which included $23 million of post combination stock compensation expense recognized in connection with the in vivo transaction.
Speaker 4: And that related to the adoption of the Envigo Equity Plan.
And that related to the adoption of the illegal equity plan.
Speaker 4: and higher strategic investment in unallocated corporate GNA to support additional future revenue growth.
And higher strategic investment in unallocated corporate G&A to support additional future revenue growth.
Speaker 4: And this included additional headcount, recruiting, and relocation expense.
This included additional head count recruiting and relocation expense.
Speaker 4: higher compensation expense, transaction costs related to the acquisitions of PLATO and VIGO and RSI, an increase in sales commissions due to higher sales awards, an increase in selling expenses due to an increase in travel as our sales and marketing teams have traveled more as the COVID-19 pandemic eases, and an increase in startup costs for internal investments and new service offerings.
Higher compensation expense transaction costs related to the acquisitions of play Doh and Vigo in resi and.
An increase in sales commissions due to higher sales awards and increase in selling expenses due to an increase in travel as our sales and marketing teams have traveled more as the COVID-19, pandemic eases and an increase in startup costs for internal investments in new service offering.
Speaker 4: During the quarter, we continued investing in internal capabilities to provide additional service offerings, such as laboratory solutions, medical device pathology, biotherapeutics, and genetic toxicology.
Yeah.
During the quarter, we continued investing in internal capabilities to provide additional service offerings, such as laboratory solutions medical device pathology biotherapeutics and genetic toxicology.
Speaker 4: All combined, adjusted corporate unallocated GNA, much of which was growth oriented, totaled approximately 8.3% of revenue in the first quarter of fiscal 2022, compared to approximately 16.2% of revenue in the first quarter of fiscal 2021.
All combined adjusted corporate unallocated G&A much of which was growth oriented totaled approximately eight 3% of revenue in the first quarter of fiscal 2022 compared to approximately 16, 2% of revenue in the first quarter of fiscal 2021.
Speaker 4: I'd also like to point out that this quarter's selling expenses were higher compared to prior periods due to our increased book to bill ratio as we accrue commissions when we win new orders. Prior to the recognition of corresponding revenue.
I'd also like to point out that this quarter selling expenses were higher compared to prior periods due to our increased book to bill ratio as we accrued commissions when we win new orders prior to the recognition of corresponding revenue.
Speaker 4: Net loss attributable to common shareholders in the first quarter of fiscal 2022 totaled $83 million or a negative $3.93 per diluted share compared to a net loss of $366,000 or a negative $0.03 per diluted share in the comparable prior year period.
Net loss attributable to common shareholders in the first quarter of fiscal 2022 totaled $83 million or a negative $3 93 per diluted share compared to a net loss of $366000.
Or a negative <unk> <unk> per diluted share in the comparable prior year period.
Speaker 4: This quarter's reported figure, as mentioned above, was impacted by post-combination non-stock compensation expense recognized in connection with the InVego acquisition of $23 million relating to the adoption of the InVego equity plan and a $56.7 million loss on fair value remeasurement of the convertible notes issued in September 2021.
This quarter's reported figure.
And above was impacted by post combination non stock compensation expense recognized in connection with the M diesel acquisition.
Of 23 million relating to the adoption of the N V go equity plan and a $56 $7 million loss on fair value Remeasurement of the convertible notes issued in September 2021.
Speaker 4: Adjusted EBITDA equaled approximately $10.1 million, or 12% of revenue, in the first quarter of Fiscal 2022, compared to $1.4 million, or 7.8% of revenue, in the comparable prior year period.
Adjusted EBITDA equaled approximately $10 $1 million or 12% of revenue in the first quarter of fiscal 2022, compared to $1 4 million or seven 8% of revenue in the comparable prior year period.
Speaker 4: The bill-to-bill ratio for our DSA services business in the first quarter of fiscal 2022 was 1.78 times.
The book to Bill ratio for our DSA services business in the first quarter of fiscal 2022 was $1 seven eight times, we continued to build our infrastructure for growth, which included additional head count transaction and integration costs and internal investments in our people new service offerings.
Speaker 4: We continued to build our infrastructure for growth, which included additional headcount, transaction and integration costs, and internal investments in our people, new service offerings, new systems, and technology.
The new systems and technology.
Speaker 4: Our backlog at the end of the first quarter of fiscal 2022 was $104.6 million, up 28.5% from $81.4 million on September 30, 2021, and up.
Our backlog at the end of the first quarter of fiscal 2022 was $104 6 million up 28, 5% from $81 4 million on September 32021 and up.
Speaker 4: 130.9 percent from 45.3 million dollars on December 31st, 2020.
139% from $45 $3 million on December 31, 2020.
Speaker 4: Our balance sheet as of December 31, 2021 included cash and cash equivalents of $42.4 million.
Our balance sheet as of December 31, 2021 included cash and cash equivalents of $42 $4 million.
Speaker 4: We had a zero balance on a $15 million revolving credit facility and a delayed term loan facility in the original principal amount of $35 million available to be drawn up to 18 months from the date of the credit agreement, which was November 5, 2021.
We had a zero balance on our $15 million revolving credit facility.
And a delayed draw term loan facility in the original principal amount of $35 million available to be drawn up to 18 months from the date of the credit agreement, which was November five 2021.
Speaker 4: Our consolidated debt as of December 31, 2021 totaled $260.6 million.
Our consolidated debt as of December 31, 2021 totaled $266 million.
Speaker 4: Our Form 10Q will be filed on Monday, February 14th and will provide the balance sheet and statement of cash flow.
Our Form 10-Q will be filed on Monday February 14th and will provide the balance sheet and statement of cash flows.
Speaker 4: On January 10th, 2022, we borrowed the full amount under our existing $35 million delayed draw term loan facility to fund the purchase of ILS. And on January 27th, 2022, we borrowed on incremental term loans of $40 million for the purchase of OBRC.
On January 10, 2022, we borrowed the full amount under our existing $35 million delayed draw term loan facility to fund the purchase of ILS and on January 27, 2022, we borrowed an incremental term loans of $40 million for the purchase of <unk>.
Overall, we are pleased with the direction our business is heading in we felt confident in continuing to invest in our future.
Speaker 4: This concludes our prepared remarks, and with that, Operator, please open the call for questions.
This concludes our prepared remarks and with that operator, please open the call for questions.
Thank you at this time, we will be conducting a question and answer session.
I'd like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue you.
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Speaker 1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
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Our first question comes from the line of Kyle Bowser with Colliers. Please proceed with your question.
Great. Thanks, so much and congrats on the phenomenal results here again.
Maybe starting with.
Some of the recent acquisitions, so specifically ILS and <unk> just kind of curious how how those came about where these situations where you were able to kind of quickly ask and say popped onto your radar somehow or had you been in discussions with the companies for a while I'm just kind of curious how it played out.
Yeah.
Oh, PRC had historically been a supplier to.
<unk>, two <unk> or two.
And it has for several years.
So we started talking to them.
Prior to the.
FICO deal being closed or announced.
Speaker 3: So that had been in the works for some time. It was part of our strategy. We knew that.
So that had been in the works for some time.
Part of our strategy, we knew that.
Speaker 3: that there was an opportunity to continue building our services and expand our boarding capability, board for breeding and boarding for maturing for our customers. And that's been an increasing revenue source for Invego being increasing force going forward. We looked at other alternatives of how we could expand in our property in Texas and
There was an opportunity to continue building, our services and expand our boarding capability.
Breathing aborting for maturing for our customers.
And that's been an increasing revenue source for <unk> will be an increasing force going forward. We looked at are there other alternatives of how we could expand in a property in Texas.
And.
Speaker 3: Knowing our supplier, we kind of had an idea that they wanted to sell, and we were able to, I think, get involved before anybody else did get involved in an agreement with us, and we were able to complete that transaction. So really pleased. It opens up some capacity for us.
Knowing knowing our supplier.
Kind of had an idea that they wanted to sell and we were able to I think get involved before anybody else to get involved.
And an agreement with us and we were able to complete that transaction. So really pleased it opens up some capacity for us.
Speaker 3: And I think it would be synergistic with our current ALICE facility and, you know, provide some additional room for services and for our customers.
And I.
I think it will be synergistic with our current Alice facility.
No.
Some additional room for services and for our customers as.
Speaker 3: As far as the RSI, that was a company that InVeco had identified prior to us closing. They told us about it. They initiated those conversations with them and visits, and then in early October , we were able to strike a deal with them.
As far as the Rs II.
As a company and veeco could identify.
Prior to us closing.
They told us about it.
Michelle those conversations with them and visits and then.
As you know in early October we were able to strike a deal with them.
Speaker 3: again, prior to probably closing the transaction. And we knew that that was something that we had capacity internally. They were gonna get out of the business and it was an opportunity for us to gain market share and use some of our existing capacity.
Again prior prior prior to closing the transaction.
So we knew that that was something that we had capacity internally.
We're going to get out of the business and it was an opportunity first to gain market share and use some of our existing capacity.
Speaker 3: So, you know, one of our key strategies is scale, making sure we utilize unutilized capacity. And we need that customer base. Some of that is a sticky customer base with that, which we've talked about before. So acquiring customer base there made sense to us.
One of our key strategies is scale, making sure we utilize unutilized capacity.
And we need that the customer base some of that is a sticky customer base with the.
<unk> talked about before so acquiring customer base there.
Makes sense to us.
Speaker 3: And I thought it would not put too much more burden because they were going to be somewhat add-ons to what we already had. So, you know, I know that a lot of the acquisitions at one
And I thought it would it would not put too much more of a burden because they were going to be somewhat add ons to what we already had so.
I know that's a lot of the acquisitions at one time and.
Speaker 3: We've been able to complete these, and I'm really pleased with what the team has done, but we've got a group of people put in some extraordinary effort, and I'm really pleased with the results so far, but it's still a lot of work to do.
Okay.
<unk> been able to complete these and I'm really pleased with what the team has done but it's.
We've got a group of people put in some extraordinary effort.
Really pleased with the results so far but it's.
Still a lot of work to do.
Speaker 5: Agreed. They're certainly highly accretive. And I realize the InVego deal only closed in early November , but given your track record of quick turnarounds, I was just wondering what sort of changes or improvements have been made so far as it relates to the, I guess, organizational and operating structure and what are some other opportunities here to drive synergies in that part of the world?
Oh, great. Thanks, certainly highly accretive and I realized it and Vigo D. Only closed in early November but given your track record of quick turnarounds with just wondering what sort of changes or improvements have been made so far as it relates to that.
Yes, organizational and operating structure.
And you know what what are some other opportunities here to drive synergies in that business.
Speaker 3: Well, first of these results, you know, we don't, in these results, we, we only owned Ambigo seven weeks, and out of those seven weeks, three weeks were holiday week.
Well first of all these results.
These results, we are already owned and Vega seven weeks and all of those seven weeks three weeks for holiday weeks. So.
Speaker 3: So there's four or five weeks of really to do much at the end of the year. But we've been pretty aggressive, I think, in transforming the corporate culture. We've made several changes in identifying who the leaders will be from a corporate standpoint. And unfortunately, that means that some, we don't need duplicate corporate leaders. Those changes have...
For four or five weeks really due to do much.
At the end of the year, but we've been pretty aggressive I think in transforming the corporate culture.
We've made several changes.
And identifying who the leaders will be from a corporate standpoint.
And unfortunately that means that we don't need duplicate corporate leaders those changes.
Speaker 3: have occurred or been announced or in process. And the other thing that is interesting is a year ago, Inerta was a $50 million company.
Have occurred or being announced or in process.
And.
The other thing that is interesting.
A year ago.
It was a $50 million company.
Speaker 3: growing up to be a $100 million company. And Vigo was not sure what it was doing, but it was about a $300 million company. Now we're at a run rate of over $500 million that, you know, growing again. So, you know, instead of building a company to be 100 million, we're obviously building a company much bigger than 500.
Growing up to be $100 billion company.
And D goes I'm not sure what it was doing but it was about a $300 million company now now we're at a run rate of over $500 million.
Growing again.
Instead of building a company to be $100 million, we're obviously building a company to be much bigger than 500 billion.
Speaker 3: That requires, again, further changes in infrastructure and technologies and some skill sets.
That requires change again further changes in infrastructure and technologies.
And some skill sets.
Speaker 3: So we've been making those changes, pleased with the team that's coming together. And I think you'll see us do some additional things in the future.
So we've been making those changes pleased with the team that's coming together.
And I think Youll see us do.
Cause some additional things in the future so.
Speaker 3: I'm looking forward to seeing what this team can do, but also we're testing them out quick. It was kind of a lot just in the last four or five weeks.
I'm looking forward to seeing what this team can do.
But I also think we're testing about the quick who've.
You've done a lot in the last just in the last four or five weeks.
Speaker 5: Definitely, I appreciate that. And then just lastly, housekeeping item, Beth, just kind of wondering, so you kind of walked through it a little bit, but just to verify, can you provide kind of the current cash levels and debt, including converts and basic shares outstanding after kind of all these.
Definitely appreciate that and then just lastly housekeeping item.
That's it just kind of wondering so you kind of walk through it a little bit but.
Is there can.
Can you provide kind of the current cash levels and debt, including converts and our basic shares outstanding.
Yeah.
After kind of all of these recent acquisitions.
Yes.
Speaker 4: Yeah, our current cash level is down slightly from that $42 million level.
Yes.
Yeah, our current.
Cash level.
This is down slightly from that $42 million level.
Speaker 4: But we expect strong receipts, so we're not expecting a significant change in cash. It will not be lower by the end of the quarter.
But we expect strongly.
Receipts.
We're not expecting a significant change in cash.
Might be lower but at the end of the quarter.
Speaker 4: And our current debt level is the $260 million reported, plus the $40 million in debt.
And our current.
That level is.
Is that.
The $260 million reported plus.
Plus the 40 million in term loans.
Speaker 4: that we borrowed for the OBRC acquisition.
That we borrowed for the Ob RC.
Acquisition.
Speaker 4: And then the basic shares currently outstanding, which were reported in the proceed last week, are around $24.8 million.
And then the.
Basic shares currently outstanding which were reported in the proxy last week around $24 8 million.
Speaker 4: And then fully diluted, including the convertible notes, would be around.
And then fully diluted including the convertible notes.
Would be around $35 million.
Speaker 5: Perfect. Thank you so much and congratulations on another great quarter.
Perfect. Thanks, so much and congratulations on another great quarter.
Thanks Kyle.
Speaker 1: Our next question comes from the line of Matt Hewitt with Craig Hallam. Please proceed with your question.
Our next question comes from the line of Matt Hewitt with Craig Hallum. Please proceed with your question.
Speaker 3: Good afternoon. Congratulations on the strong quarter. Maybe first up, and I realize it's still early days for some of the recently acquired properties, but could you talk a little bit about the cross selling synergies that you're seeing already and how you think those could progress over the course of the year?
Good afternoon, and congratulations on the strong quarter.
Maybe first stopping they realize it's still early days.
Some of the recently acquired properties, but could you talk a little bit about the cross selling synergies that youre seeing already and how you think those could progress over the course of the year.
Speaker 3: Yes, I don't have a metric for you on the cross-selling. Obviously, by the book, the bill is 1.7821. We're not having any trouble selling our services at the moment.
Yes.
I don't have a metric for you on the on the cross selling.
Obviously by the by the book to Bill of 178 to one.
We're not having trouble selling our services at the moment.
Speaker 3: And so, but we do get, I do get reports of the cross-selling. And we're seeing probably a lot right now, mainly in the discovery and small animal models.
And so.
But we do get.
I do get reports.
The cross selling and we are seeing.
A lot right now mainly in the discovery.
And small animal models.
Speaker 3: and we're seeing that develop and we're seeing relationships develop. I couldn't tell you what the revenue is, but there's a long list of relationships that are starting to develop and expand. And fortunately, this is also taking advantage of some of the new capabilities we're building and brought on board with Play-Doh and the Boulder acquisitions and with the recent expansion in St. Louis.
And we're seeing that develop and what we're seeing relationships develop I Couldnt tell you what the revenue is but.
There's a long list of relationships that are starting to develop and expand and unfortunately. This is also taking advantage of some of the new capabilities. We're building are brought on board with play Doh and the bowl.
<unk> acquisitions and with the recent expansion in St. Louis.
Yeah.
That's great and.
Speaker 6: NHP pricing. I'm wondering if you could kind of walk through maybe where that was pre-pandemic, where it is today, and maybe talk a little bit about how you've positioned yourself to kind of be the source for your customers where others are maybe facing challenges because of the supply disruptions and the issues. But, you know, kind of where you stand.
And HP pricing I'm wondering if you could kind of walk through maybe where that was pre pandemic, where it is today and maybe talk a little bit about.
How are you positioned yourself to kind of be the source for your customers, where others are maybe facing challenges because of the supply disruptions and the issues, but you know kind of where you stand.
Speaker 6: on that point, you know, as far as being able to meet your customers.
On that point are you know as far as being able to meet your customers and maybe even how far out you've kind of book some of those contracts.
Speaker 6: and maybe even how far out you've kind of booked some of those contracts.
Yes.
The question, but.
Speaker 3: You know, I think pre-pandemic, at one point, the open market was probably 3,000 range. I think it's.
Yes.
Think pre pandemic.
At one point that the open market was probably 3000 range, but I think it's.
Speaker 3: Doubled every year doubled to 612 I think this year will.
Doubled every year doubled to 612 I think this year.
Speaker 3: we'll see a double again. I think the spot market is probably in the 20s now.
We will see a double again.
The spot market is probably in the Twenty's now.
And.
Speaker 3: and we don't see that going away. Most of what we have.
And we don't see that going away most of what we have.
Speaker 3: coming in for the year and have available for the year have been pre-sold and we want to make sure we honor any contracts that we have with all of our.
Coming in for the year and have available for the year had been pre sold and we want to make sure we are on or any contracts that we have with Oliver.
Customers.
Speaker 3: but there has been obviously a lot of cost pressure and pricing pressure. So, our cost has increased significantly and so has the price.
But there.
There has been.
Obviously, a lot of cost pressure and pricing pressure. So our cost have increased significantly in Soho.
<unk>.
Speaker 3: And our margins are, I think, are doing well so far.
Our margins are I think they're doing well so far.
Speaker 3: There'll be some synergies with what we just did, further with some of our import and transportations. There'll be further synergies with feed and what we have. And I think there are additional services now as a result of that.
There'll be some synergies with what we just did with further with some of our important transportation.
It would be further synergies with feed and what we have.
Uh huh.
There are additional services now as a result of.
Speaker 3: of the condition in terms of some customers wanting to do their own breeding or their own boarding and their own maturing, if you will.
The condition in terms of some customers wanting to do their own breathing or their own boarding.
And in their own maturing if you will.
Speaker 3: So we're gonna expand those services, make sure those are available. So those are new services, they're expanding rapidly.
So we're going to expand the services to make sure. Those are available. So there is some new services that are expanding rapidly.
Speaker 3: As far as the overall market condition, I believe this is something that's been going on, not just pandemic related. I think it's a trend that started 10 years ago, and I think you can bring down the CDC reports, but you can see that
As far as the overall market condition.
I believe this is something that's been going on.
Not just pandemic related I think it's a trend that occurred started 10 years ago.
I think you can bring down the CDC reports, but you can see that.
Speaker 3: At one point, China was exporting 90 percent of what they were producing, and today they don't export any. That was a trend that started 10 years ago. It's not a trend that started just when COVID hit. When COVID hit, it happened coincidentally when they stopped exporting.
At one point, China was exporting 90% of what they were producing.
And today, they don't export anything and that was a trend that started 10 years ago.
The trend that started.
When Covid hit we just won't go with it did happen to coincide with when they stopped exporting.
So.
That is.
A large.
Speaker 3: pressure on the supply and the demand continues to increase with biotherapeutics and cell and gene therapy.
Pressure on the supply.
And the demand continues to increase with the biotherapeutics in cell and gene therapy.
Speaker 3: So it's still there, many of the drugs.
So it's still.
So many of the drugs.
Speaker 3: get FDA approval, many of them are going to require NHPs for their studies.
Get FDA approval many of them are going to require hps for their studies.
So.
Speaker 3: I don't see that trend changing anytime in the next few years.
I don't see that trend changing anytime in the next few years.
Speaker 3: So we'll continue to build up our services and our capacity. And right now I think we have a good market share of NHP.
So we will continue to build up our services and our capacity and.
Right now I think we have a good market share.
Have NH beach.
Speaker 6: That's really helpful. Thank you so much. And then maybe one last one, Beth, this might be for you. Thank you for kind of walking us through the product gross margin and the puts and takes there. If I heard you correctly, that the adjusted, if you will, product gross margin should have been something closer to 17% for the quarter. Will it kind of
Okay.
Really helpful. Thank you so much and then maybe one last one Beth this might be for you.
Thank you for kind of walking us through the product gross margin in the puts and takes there if I heard you correctly that the.
Adjusted if you will.
Product gross margin should have been something closer to 17% for.
For the quarter will it kind of will it bounce up to that here, starting this quarter or how does that kind of play out over the next couple of quarters, especially given some of the price increases that you've seen thank you.
Speaker 6: Will it bounce up to that here starting this quarter, or how does that kind of play out over the next couple quarters, especially given some of the price increases that you've seen?
Yes, you are correct.
Would be closer to that 17%.
Without the noncash amortization, there will be a little bit more of that amortization that will hit Q2.
Speaker 4: for the step up of inventory, but that will not continue after Q2.
For for the step up of inventory.
That will not continue after Q2.
Got it alright, thank you so much.
Thank you thank you Matt.
Speaker 1: Our final question comes from the line of Frank Tackenen with Lake Street Capital Markets. Please proceed with your question.
Our final question comes from the line of Frank <unk> with Lake Street Capital markets. Please proceed with your question.
Speaker 7: Hey, Bob. Hey, Beth. Thanks for taking my questions. I wanted to continue on from Matt's line on the NHP pricing. I was hoping you could just give us a little bit more color into what some of the contracts look like right now, and if there is an opportunity just to, as contracts expire and new contracts come in, have some step up in pricing over the next couple of years with the different, both Indigo as well as OBRC.
Hi, Bob Hey, Beth Thanks for taking my questions I wanted to continue on from Matt's line on that and HP pricing I was hoping you could just give us a little bit more color into what some of the contracts look like right now and if there is an opportunity just to as contracts expire and new contracts come in have some.
Up in pricing over the next couple of years with the different both in <unk> as well as <unk>.
Speaker 3: Our contracts are generally, even though we may have multiple year contracts from our suppliers, they reset pricing annually.
The contracts are contracts are generally.
Even though we may have multiple year contracts for from our suppliers they reset pricing annually.
Speaker 3: And so, we reset pricing annually also with our customers.
And so we reset pricing annually also with our customers.
So.
Speaker 3: I don't know that anybody has a real good fix on what 2023 pricing is at this point. We'll talk to our suppliers and we'll make that decision probably closer to September to October of this year. It's going to be in 2023 when we get more feedback from them.
I don't know that anybody has.
Good fix on what 2023 pricing is at this point.
We'll talk to our suppliers.
We'll make that decision probably in the.
Closer to September to October .
This year.
It's gonna be a 'twenty three but when we get more feedback from them.
Hopefully the markets.
Speaker 3: travel will be open, we'll be able to visit them and meet them in person before that. We haven't been able to do that lately, but as I said, we'll continue to honor what we have there and what we have in place right now will be through the rest of the year.
Travel will be opening will be able to visit them and meet them in person before that its been <unk> been able to do that lately, but we will.
As I said, we will continue to honor what we have there and what we have in place right now as well.
It will be through the rest of the year.
Speaker 3: fiscal year, calendar year, calendar year, calendar year.
Okay. That's helpful. And then just wanted to note fiscal year calendar year pellet contracts.
Speaker 3: We do have some we sell on the spot market, if we have extra capacity, extra available. We will sell some on the spot market, but a great deal of what we have coming in is accountable.
Got it Okay and then we actually also had a little bit.
We do have some we sell on the spot market.
If we have extra capacity extra available we will sell some on the spot market but.
A great deal of what we have coming in it's accounted for.
Speaker 7: Got it. Okay, that makes sense. Just wanted to take a little bit higher view and wanted to get some anecdotal feedback you've been hearing in the field now that you've been offering the full suite of preclinical plus research models since November . What has been just broad industry feedback? How have people been digesting this, this change in the market?
Got it okay that makes sense just wanted to take a little bit higher view and wanted to get some anecdotal feedback you've been hearing in the field now that you've been offering the full suite of preclinical plus research models. Since November what has been just broad industry feedback how have people been digesting. This this change in the market.
Speaker 3: Well, we're on the DSA side, so we're a buyer and a user and discovery and safety assessment side. All of our customers are well aware of what's taking place.
Well, we're on the DSA sites.
We're a buyer and user and <unk>.
Discovery and safety assessment side and.
We've been all of our customers are well aware of what's taking place.
Speaker 3: And as a result, we've been able to pass that through. I believe all of our customers have been able to pass that through.
As a result.
We've been able to pass that through I believe all of our customers have been able to pass that through.
Speaker 3: So, they have to understand it's part of doing business. That I don't think has been a problem for any of us that I'm hearing out here, pushback. And they're more concerned right now about their supply, which is increasing some of the request for boarding or breeding and boarding contracts so that they can start to have their own colony or their own resources. And that's where I think we'll see some increase in services.
So you can understand it's part of doing business, but I don't think it's been a problem for any of us that I'm hearing out here pushback, they're more concerned right now about their supply which is increasing.
Some of the request for boarding are breeding.
Boarding contracts so that they can.
It started to have their own colony or their own resources.
And that's where I think we will see some increase in services.
Speaker 3: And so we'll be making some further investments in our facilities in order to expand those.
So we will be making some further investments in our facilities in order to expand those services.
Speaker 3: But I think they're more worried about it. At this time, I would say, I hear more worry about access to supply than I hear about necessarily the price.
But I think they're more worried about it at this time I would say I hear more worry about access to supply then I hear about necessarily the pricing.
Speaker 7: Got it. Okay, that's perfect. And then just last one for me.
Got it Okay. That's perfect and then just last one for me.
Speaker 7: comment on acquisition pipeline at all. I've obviously heard your comments about it. There's a lot to digest right now, but I'm sure that the acquisition team isn't sitting around right now, so just any update on that front you can provide us would be great.
Can you comment on acquisition pipeline at all obviously I heard your comments about is there's a lot to digest right now, but I'm sure that the acquisition team isn't sitting around right. Now so just any any update on that front you can provide us would be great.
Speaker 3: Well, we really don't comment on the go forward acquisitions. I've always been very open that we are expanding internally and that's obviously very valuable for us to continue to grow internally.
Well, we really don't comment on the go forward acquisitions I've always been very open that we are expanding internally in.
That's obviously.
Very viable for us to continue to grow internally.
Sure.
Speaker 3: employees like to see investment in our facilities and our internal growth. But we are constantly looking at external acquisitions, I would say, with our growth over the last four or five months. We've probably shown up on more radar screens than we did before.
Our employees like to see us investing in Oklahoma facilities into kind of internal growth.
We are constantly looking at external acquisitions, I would say with our <unk>.
Growth over the last.
Four or five months.
Probably have shown up on more radar screens that we did before.
Speaker 3: and we can look at probably a broader array of potential assets and acquisitions going forward. But this, so I won't comment on anything going forward, but we're always gonna remain active. But I'll have to balance that again with our team and our ability to build our corporate team and are they ready to really digest and continue to move forward.
And we can look at probably a broader array of potential assets and acquisitions going forward.
But at this.
So I won't comment on anything going forward, but we're always going to remain active.
I will have to balance that again with our team.
And our ability to build our corporate team and are they ready to really digest and continuing to move forward.
Speaker 3: But we, you know, we always keep our eye on a few things and...
We always keep our eye on a few things.
Speaker 3: and we will continue to do so. And I hope that that continues to be part of our strategy. Again, our corporate team and our acquisition team or people, they like that. And what's really rewarding for us right now is we have some people reach out to us.
And we will continue to do so.
And I hope that that continues to be part of our strategy and again, our corporate team and our acquisition team or people they like that and.
And what's really rewarding for us right now.
We have some people reach out to us and and.
Speaker 3: and they'd like to be part of our organization. They're looking for an exit strategy or to be part of a full service organization. And it's very rewarding to have them call and say, we would like to be part of your organization. Not necessarily even going through a process.
And they'd like to be part of our organization. They are looking for an exit strategy or to be part of a full service organization.
And it's very rewarding to have them call it should be.
I'd like to be part of the organization.
So it really is going to going through a process.
Speaker 3: So, we continue to pick those calls and I look forward to, you know, looking at those opportunities.
So.
We continue to take those calls and I look forward to.
Looking at those opportunities.
Speaker 7: Okay, I'll stop there. Thanks for taking my questions and congrats on all the progress.
Got it okay I'll stop there thanks for taking my questions and congrats on all the progress.
Thank you.
Speaker 1: Ladies and gentlemen, we have reached the end of the question and answer session. I will now turn the call over to Bob Leisure for closing remarks.
Ladies and gentlemen, we have reached the end of our question and answer session. I will now turn the call over to Bob will you hear for closing remarks.
Speaker 3: But thank you for participating in our call this afternoon. In closing, I'd really like to thank all of our employees and everyone involved and the extraordinary effort that they bring every day to make this an exceptional company and achieving the transformation that's occurred over the last four to six months.
Well, thank you for participating in our call. This afternoon in closing I'd really like to thank all of our employees and everyone involved and the extraordinary effort that they bring everyday to make this an exceptional company.
Choosing the transformation that's occurred over the last four to six months.
Speaker 3: Please reach out to our investor relation firms, the equity group, if you're interested in scheduling a follow-up call. I look forward to reporting back to you in May when we release our second quarter fiscal 2022 financial results. Have a great day.
Please reach out to our investor relation firm the equity group, if you're interested in scheduling a follow up call.
I look forward to reporting back to you in May when we release, our second quarter fiscal 2022 financial results have a great day.
Speaker 1: Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
Thank you. This concludes today's conference and you may disconnect your lines at this time.
You for your participation and have a wonderful day.