Q1 2022 US Physical Therapy Inc Earnings Call
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Good day, and thank you for standing by welcome to the U S. Physical therapy first quarter 2022 earnings conference call.
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I'd now like to turn the call over to Chris spreading President and CEO . Please go ahead Sir.
Great. Thank you good morning.
And welcome everyone to our U S physical therapy first quarter 2022 earnings call.
With me in the office and on the lot of any food Carey Hendrickson, our Chief Financial Officer, Graham Reeve and Eric <unk>, Our co chief operating officers and senior Executive Vice President General Counsel, Jay Martinez Senior Vice President controller.
Before we begin today with some prepared comments, we need to cover a brief disclosure statement Jacobs.
Thank you Chris. This presentation contains forward looking statements, which involve certain risks and uncertainties. These forward looking statements are based on the Companys current views and assumptions the company's actual results may vary materially from those anticipated.
Please see the company's filings with the Securities and Exchange Commission for more information.
Thanks, Jay So I'm going to start this morning, with some highlights and color on the quarter I saw some commentary on the operating environment.
So what we wrapped up the quarter, where we expect it to be we did have a particular supposed to start to the year or January particularly in February meaningfully impacted as a result of the omicron bars, which produced a pandemic high number of our team in quarantine.
And this was especially prevalent in January of course, we dealt with the usual challenges will impact corner weather.
Right that we rallied hard in March with very good visit more for all numbers in a rather dramatic drop in quarantines and exposures both of those good trends have continued through the present period.
A visit front, we closed the quarter at 27.9 visits per clinic per day, which is up from the same period in 2021, our team produced a really nice same store visit growth number at five 9%. So I just wanted to call out to our partners our sales staff.
Clinical staff, that's as good a number or is that can remember we've ever had in the quarter and considering.
All of our challenges even to the start of this quarter. That's just an exceptional number.
That was offset slightly on the revenue side and part of our Medicare pricing adjustments announced earlier in 2021, which became effective at the start of this year.
Our adjusted EBITDA grew 14, 2%, but overall volumes of 12, 2%.
Which is over 1 million visits and I believe that that's the most visits we've ever produced in the first quarter for our company.
That drove physical therapy revenue up by 10, 6%.
Considering the challenging labor market I feel like our team across all fronts did a spectacular job on staff engagement managing our total cost per visit was up the west.
<unk> was up less than one half of 1% year over year and our mature facilities. What do you think there is.
Which is which I think is really amazing considering the broad environment right now.
Another bright spot within our injury prevention business, which we continue to invest since our first acquisition beginning in March of 2017.
Revenues for the first quarter increased 90% to $19 1 million of that increased $6 8 million related to the acquisition. We completed at the end of November of last year, excluding that acquisition or injury prevention revenues increased 22, 4%.
Again, very strong number there and a great team.
Total company revenue grew by 17, 2% for the quarter. Despite as I mentioned earlier, a slow start to the year, while our operating.
As a percent of revenue in Q1 as expected, especially with the rate impact our biggest controllable costs and salaries and related costs extremely well in our facilities again up just 40 basis points compared to 2021 Q1.
And our non mature acquired new facilities.
Just want to make sure everybody remembers those off and we had a great development year last year. So we had a lot of those.
They often come in at lower margin than our aggregate mature facility margins and of course that was reflected in this recent quarter.
Also I want to remind everyone that the most recent injury prevention acquisition at a lower margin profile than that of our legacy business.
Combination was expected to bring our aggregate margins in that segment down somewhat also.
I think the team has proven that an spa.
Right.
Whatever comes margin pressure.
Weather.
Pandemics.
It certainly makes things more challenging, but we've been proven to be able to grow through these types of challenges. We continue to demonstrate the strengths of our model and execute our opportunity at hand. These opportunities include development, which I will tell you is very strong right now very busy which include the early announced deal with Chad.
Matt and Mike Gilbert, Pennsylvania, with a number of growth opportunities surrounding that partnership beginning to present themselves.
We have opened 12 de novo facilities, so far this year across our strongest partnerships. So we're off to a good start there.
Very very busy on the acquisition discussion side of our opportunity as well maybe as busy as we've ever been.
Good.
While the environment is challenging for all health care providers right now.
It is clear that over these past couple of years. So we have the resources as well as the balance sheet flexibility to withstand these challenges and to grow through them.
<unk> been a great home for like minded partners see opportunities to further expand our footprint, who believe in the future of our profession and the broad benefits the entire system derives from our services.
Where are we where we can become a valued partner with those private practices and the <unk>.
Partners to help them thrive at a time.
Struggle going forward to have our team has proven we are well equipped to do so over the long run regardless of these broader challenges.
So we have a lot of information to cover carry a few word financials in a little bit more detail and then we'll open it up.
For question, we will do thank you, Chris and good morning, everyone as Chris noted our momentum built through the first quarter. Once we move past the effects of omicron, which we felt primarily in January as a result, we posted operating results that were higher than the first quarter of the prior year. Despite the Medicare rate reductions that were implemented on January the <unk> for the first quarter of 2000.
<unk> 22, we reported operating results per share of <unk> 65, as compared to 64 cents in the prior year's first quarter and as Chris noted our reported adjusted EBITDA was $17 9 million for the first quarter of 'twenty two.
All time first quarter high for the company and a $2 3 million or 14, 2% increase over the prior year, which was the previous first quarter high.
Our physical therapy patient volumes per day per clinic were $27 nine in the first quarter, which is also a record high first quarter volume level for the company.
That's 3% higher than last year's $27, one average visits per clinic per day.
Our average visits per clinic per day for all clinics were $25 nine and January $28. One in February and then $29 five and March you'll recall that in March of last year is when we reached at 29 level in volume for the first time in our history and we continued at that level or greater for the rest of 2021.
So we're happy to see March of this year about 29 again in April trended well also.
Our net rate for our physical therapy operations was $103 in the first quarter of 2022, which compares to $104 72 that we reported in the first quarter of last year, which was our highest quarterly net rate in 2021 and.
The most recent fourth quarter of 2021, our net rate was $103 53, so our first quarter net rate is down 0.5% on a sequential basis from the fourth quarter.
Our first quarter 'twenty, two net rate reflects the 0.75% Medicare rate, Pat and a 15% decrease in rate for care provided to Medicare patients physical therapy assistant both of which went into effect in January of this year.
As a reminder, and as we've disclosed previously this sequestration relief that we've had since the beginning of the pandemic, we will start to phase out in the second quarter when Medicare rates will decrease by 1% and then with the remaining 1% of sequestration rate relief coming out in the third quarter.
Our total visits increased by almost 116000 in the first quarter to $1 63519 visits that's an increase of 12, 2% from the first quarter of 2021 for the first quarter of 'twenty two.
The increase was due to both organic same store growth and from the addition of new clinics.
As Chris noted our same store volumes increased five 9% in the first quarter versus the prior year and we had 40 more clinics on average open in the first quarter of 2022 and in the first quarter of 2021.
Our physical therapy revenues were $110 4 million in the first quarter of 2022, which was an increase of 10, 6% from the prior year.
Revenues for the industrial injury prevention business were at an all time high $19 $1 million in the first quarter of this year, which was a 95% increase over the first quarter of 2021 and as Chris noted, even excluding our IP acquisition in November of 2021, IP revenue still increased 22, 4%.
Our team also continues to do an excellent job managing our cost and keeping our cost increases aligned with growth in revenue and visits.
Our operating costs were $105 million $1 million in the first quarter of 2022, or <unk> 79, 8% of net revenues, which was up from $86 $5 million in the first quarter of 2021, So that was an $18 $6 million increase in cost from the first quarter of the prior year and that was mostly due to the significant increase in visits that we had year over.
Year.
When you look at it on a same store basis, our physical therapy operating cost per visit were $81.08 in the first quarter of 2020 to up only 0.4% from the first quarter of 2021.
And our total physical therapy operating cost were $83 nine in the first quarter of 2020 to up only two 4% from $81 18 per visit in the first quarter of 'twenty one.
Looking specifically at salaries and related costs, our salaries and related costs for all operations were 57, 1% of revenues in the first quarter of 2022, only slightly higher than our 56, 8% for the first quarter of 'twenty one that.
That represents only a 0.5% increase year over year and salaries as a percent of revenue.
For our physical therapy operations, only salaries and related costs were $58 74 per visit in the first quarter of 2020 to up only one 6% from $57 83.
In the first quarter of 2021 that was down from $59 20 in the fourth quarter of 'twenty one.
Our gross profit was $26 6 million in the first quarter of 2022, which compares to $25 $9 million last year. Our gross profit margin was 22% in the first quarter, which compared to 23% in the prior year. Our margin was impacted by the Medicare rate reduction and as Chris noted the lower margin profile of the IP.
That we acquired in November of last year, which had a margin of 18, 3% in the first quarter.
Our corporate office costs were $11 $6 million in the first quarter of this year as compared to $10 $9 million last year as a percent of revenue our corporate costs were eight 8% of revenues in the first quarter of 'twenty, two which was down from nine 7% in the first quarter of last year.
A new line on our income statements you'll know it was our other income includes a gain of $603000 related to the revaluation of our liability.
As part of the November 2021, IP acquisition U S. P H and the founders of that acquired business agreed to the right for USB H to purchase a second phase of that business in five years, we have a liability on our books that represents the value of that put right.
Must be revalued, each quarter with any change in value recorded as a gain or loss in other income.
The total liability was originally $3 $5 million and it's now at $2 $9 million. After recording this change in value in this first quarter.
Because it's not associated with our ongoing operations. We've adjusted this gain out of our operating results and we'll continue to do so going forward, whether it's a gain or loss in any given period.
Our net income attributable to Noncontrolling interest was $3 $2 million in the first quarter of this year, which is less than the $3 $7 million in the first quarter of last year, even though our operating income from our <unk> businesses was higher in the first quarter of this year than last year.
As a percent of such profits our noncontrolling interests were 12.0% in the first quarter of 'twenty, two as compared to 14, 3% in the first quarter of 'twenty one.
The reduction in the Noncontrolling interest percentage is due to the purchase of Noncontrolling interest from equity.
Excuse me from existing partners in 'twenty, one we purchased $30 million of Noncontrolling interests from those existing partners and we purchased another $2 $3 million in the first quarter of this year.
Finally, our balance sheet remains in an excellent position and our cash generation remains strong we ended the quarter with $118 million drawn on our $150 million revolving credit facility, which includes $11 $2 million that was drawn on March 31. Upon the acquisition of the Madden Gilbert therapy company.
Our net debt at March 31 was $102 million, which includes the $118 million on our line of credit $4 2 million and deferred payroll taxes under cares and $4 $1 million in notes payable net of $24 2 million in cash so that was $102 $1 million. This first quarter, our net debt position at December 31.
One was $94 million. So in the first three months of 2022, we funded that $11 $2 million acquisition, we invested <unk> 5 million <unk> assets and we purchased Noncontrolling interest from our partners of $2 $3 million all of those things together totaled $16 $1 million, but our net debt position increased only $8.
$1 million.
As Chris noted in his comments in the press release.
And also this morning, we expect to have another very productive year on the acquisition front, our low leverage on our strong cash generation provide us with tremendous flexibility and sufficient capacity for the right growth opportunities as we identify them and now Chris ill turn the call back with great care. Thank you operator.
Go ahead and open it up for questions.
At this time, if you would like to ask a question. Please press the star and one on your Touchtone phone you may remove yourself from the queue at any time at pressing the pound key once again that is star one to ask a question.
And our first question will come from Larry Solow with CJS Securities.
Good morning, Larry Good morning, Hey, good morning, guys.
I guess first question Chris.
Very good volumes.
Good start to the year.
The easier comp I feel like you've kind of things really normalized sort of in March of last year. So I think as it kind of had out looks like Q2 and beyond your sort of backup pre pandemic levels and growing so.
Do you feel I know you do.
Don't give exact guidance on sort of volume growth.
Do you think you can still maybe not get 6% volume growth from you know from Q2 on but do you feel like you could still see.
Historical 2% to 3% volume growth as we look at this year and maybe even the next few years.
Yes, Larry I think.
I'll go on record of saying over a period of time I think we can continue to grow volumes.
Im going to try to avoid getting into a quarter to quarter speculation.
We're going to do.
So we're going to try to avoid that.
We're we're.
The volume that we see.
Seen accelerate in the spring.
<unk>.
So we're happy about where we are right now.
Okay, and then just on pricing I know, we start to feel some of the Medicare hit this quarter there'll be it will be a little bit more I guess, we will see a little another step down I guess right carry in Q2.
Hopefully things should sort of I think maybe a little easing even in Q3 right now everything then we should be hopefully relatively flat ish for.
For this year, how about just on the on the private side.
And he worked with private insurance trying to maybe capture better rates and you're getting on the government side clearly if you look across industries.
Right and reimbursement Theyre going way up so.
Are you a private insurance providers get that and they may be more.
Is it easier negotiated with I know nothing is never easy but.
Sure.
Yes, I wouldn't say, it's an easy negotiation thats for sure, but we are.
Our working hard on that Larry that's something that I've actually taken on as it passed with our contracting team and we are working very hard at that and staffing up to make sure that we have enough resources to really go at these these rate negotiations.
The large payers have a lot of happening a lot of leverage in these in these discussions and so we're working hard to provide some leverage on our side in those negotiations, but we're hopeful for some increases we have seen some this year and we're hopeful to get some more meaningful ones as we go through the year.
Okay. Thanks, a lot.
Long term play.
No absolutely in terms of margin tire, while while you got the mic.
Yes, yes salaries and related costs were obviously like you said barely up year over year.
The percent of revenue.
Your overall gross margin I know it was skewed downward yet you spoke to the lower.
Lower mix in industrial services, and obviously you have.
Losing some revenue on the Medicare side right. So we saw the biggest impact in terms of year over year as a percentage of revenue on that sort of rent and contract labor. Other line is that was that skewed more because of.
The mix is that industrial services driven line or is that was that more temporary labor early on because of COVID-19 or maybe you can just help us parse that a little bit yes.
Yes that was primarily what you said here at the end of his of contract labor associated with what was happening at the first part of the year that was a big reason for the increase and then we do have some expenses that are coming back gradually as we go along travel for instance, we still in the first quarter of last year.
Not traveling very much and so that has begun to increase this year as well. So that's why that particular line.
The first quarter is always our typically our lowest margin quarter anyway, and then we had the IP new IP business, which is at 18, 3%, which is lower than the overall average, but I expect that margin to increase as it has in previous years in the quarters ahead and to be probably more in the in the <unk>.
To mid twenties, but the rest of the for the rest of the year.
Okay, Okay, Great and then just lastly on the.
Workforce industrial prevention business.
Great reported growth.
Very impressive on the organic side.
I expect 20% growth to continue but was there anything in this quarter was it just sort of some pent up demand.
You're seeing things starting to line up more for you any thoughts on that Chris.
Yes, I think it's going to get better as we go.
The world Normalizes and while there are still buyers out there I mean, I think people are committed to getting back there.
Life back to normal and then I think on.
Our teams worked really hard.
Lots of from US a different angles on filling open positions on contracts that we just started but didn't have staffing, Florida and I think thats helped us too and so that's going to continue to be somewhat of a fight, but we're seeing some progress in that area. So I think the combination has been everybody worked really hard.
And we've gotten some physicians who've been.
In order to generate some revenue as a result.
Got it great guys I appreciate all the color. Thanks, so much.
Thank you Larry.
Thank you.
Our next question will come from Steph Wissink with Jefferies.
Fixed SaaS.
Hi, Good morning, everyone I wanted to just go back a little bit to the volume lift that you saw in the quarter was quite impressive.
If youre doing anything different with respect to training around referrals or activating your local network, maybe putting some marketing back into the market and to understand a little bit about the success.
Success case study.
Hi, Bob.
Got it Eric and Eric Loadings, and Graham Reeve on the phone you guys want to speak to that.
Yes. So this is Graham we've got currently.
About 75 total sales reps out there in the market they serve and about 500 and 470 about clinics.
That number has increased just slightly.
But we have got a big focus on sales and also.
Direct to consumer marketing that we're working on distinct way to try and drive volume.
Some success there as well.
Yes, we've been to my follow up.
Go ahead I'm sorry.
Go ahead Scott.
Obviously, I'll just make a comment and reiterate what Graham said there is a focus here certainly in terms of marketing and.
Direct to consumer which has been a major difference for us and in a lot of markets.
Yeah.
Yes, we've heard of some of that so I wanted to double click on that and just understand it's not conventional necessarily to see a lot of direct to consumer can you maybe talk to us about what kinds of medium you're finding to be most successful.
Are you trying new things you have good kind of data representation, where you can get validation to share with us a little bit about that mechanism direct to consumer versus maybe some of your past marketing approaches.
Yes.
Got it.
Go ahead, Chris.
Go ahead go ahead.
Yes apologize we're all in different locations.
Actually in the on the road. This morning, so I apologize for the delay there.
There's a lot of social media focus there as well.
And <unk>.
Tapping into the local market here.
So traditionally most of our physical therapy business as ground through.
Referral relationships with physicians.
Contracted with some outside organizations that actually have.
Terrific expertise in this area and in the markets, where we've really focused on this is Detroit market and the Ohio market.
Which is kind of leading the rest of the group right now in terms of those direct to consumer marketing efforts.
Alright very helpful. Thank you.
Thank you.
Our next question will come from Mike <unk> with Barrington Research.
Hey, good morning, guys.
So I just wanted to clarify because I want to make sure I understand the in the rent clinic and other.
Line.
That's where you guys include all you're PRN.
Therapy hours is that our cost is that right.
Yes.
That would be I think Terry.
Just kind of contract labor.
It would still be in the salaries and wages anything that's occurring with BMS salaries and wages.
Anything Thats <unk>.
Temporary would be.
That's right. Okay. So you guys did a really good job on the salaries and related then that's terrific alright, well.
Our partners our staff our operations team together our recruiters.
Look it's hard right now and but I do think they did a really good job.
Appreciate the color.
Given the given the quarantine given.
Labor wages it to me it seems like an outstanding job alright, so going back Chris to your comment on M&A and I think you said.
Maybe.
Z as ever in terms of the.
Discussions, which I assume.
What was around the number of discussions you are having.
I'm just curious are you noticing.
You know just in terms of all of that sort of gone on in the space with labor challenges and.
Reimbursement challenges et cetera.
Are there are you seeing a larger deals out there a lot of smaller deals any change in just the types of assets businesses, you're seeing that are open to having a discussion.
It's more Mike it's honestly more of both.
Larger than this.
This preliminary always pointing small ones, but I would I would characterize our discussions thats being more.
People that we've been in touch with over a long period of time.
And now they continue to see may be for reasons that you pointed out in their markets not for them. So much but opportunities that are driven by smaller craft practitioners may be wanting to join up a bigger team I know that's been the case with them and then go or acquisition that we did earlier this year they've gotten a lot of.
Of course.
Hey.
Youre a great provider.
No the market and what's going on.
And so most of our discussions there with people still see a lot of opportunity in the market, but want some resources to help them realize that without.
Meaningfully changing their cultural than to do it and so we're just very unique compared to the other acquirers in the market right now with respect to those attribute so I think.
It's going to pay dividends for us over time.
And just last quick one.
The M&A or the revenue associated with the <unk>.
Injury prevention asset that you guys acquired with a little bit above what I had anticipated.
Is that business trending up.
Above what you guys had internally expected or is it about in line.
It's actually a little below.
Sure.
Yeah.
It's doing well and we feel like over over a period of time, it's going to do terrific.
But a lot of their business has been.
Heavily concentrated in the auto industry, which you know has been heavily affected by the chip shortage shutdown lockdown in China and other places and so.
Okay.
The way through and they are doing a great job in aggregate.
Buying business all of it.
He is doing well and we expect it to.
To continue forward.
And their momentum grew as the quarter went on went along as well January and February were slow for them in March was much closer to our expectations.
Given all the headwinds I actually expect it to be.
A rough quarter for that for that business, but anyway, thanks, guys well done thanks.
Thanks, Mike.
Thank you our.
Our next question will come from Matt <unk> with William Blair.
Good morning.
Yes, good morning, everyone.
Chris if I think about productivity and sort of visits per day per clinic dial.
Dial back a decade ago, you were around 22.
And kind of emerging from Covid, you've now had sort of record levels of productivity around 29.
30.
Just if I think about the physical footprint of one of your locations and the number two.
Typical staff clinicians that you employ what sort of the long term growth opportunity there at what point do you hit just sort of physical space limitation or.
Clinical staff augmentation.
Yes.
Clinical staff limitation happens in every.
Just because you got to be able to find.
Find more SaaS, if you're growing and so we deal with that regardless.
The physical limitation on the facilities.
It's really not an issue.
If we expand or relocate somewhere between 12 15.
And 16 facilities a year a lot of times those are adjacent expansion, sometimes they are not sometimes they are.
Separate part of town.
And we need a bigger footprint, but it's it's it's significantly small number compared to the majority of our facilities, where we can stretch hours. We can open earlier, we can close later.
I would venture to say most of our facilities don't probably have to our spread but even right now I would like them to have so there's certainly room there there's room almost everywhere on Saturdays before.
<unk> really bump into a physical limitation perspective so.
Thats not the governing factor for us.
Okay and speaking of the governing factors over the last quarter.
You talked about.
Nobody has been somewhat limited by.
Staffing as well as the ability to get contracting permit you've mentioned today 12 opened year to date, so it sounds like.
Maybe that's gone away, but just in terms of that did help a pipeline for the balance of the year.
Like you have both the staffing and whatever logistics necessary to keep the pace up.
Yes, yes, we're going to have a good bit over a year.
Part of our part of our margin drain in the first quarter was we had a lot of facilities open.
Opening in January with the slow start and so when you look at the contribution.
And income versus revenue.
It was upside down, which what's happens with de Novo facilities, and then pick up steam and we're into a good part of our year right now, but we should have a good year this year Matt.
Okay, and then last one would just be.
Mike had mentioned last quarter.
The bigger opportunity for IP this year with Tradeshows and re upping and I think a few topics over the last couple of months going back to your forecast.
As well I guess, what is the trade to go drill schedule look like any finding in that that's kind of helpful. Traction as you are out there.
Yes.
I'm going to kick this over to Eric Eric here, a little bit closer to it.
At least one of our IP team that does a lot with trade shows.
If you know what that looks like right now I'm not sure.
There are others that we sort of go into those and in fourth quarter of last year. When they started being in person again and I had a presence at a couple of shelves and they have a full slate of tradeshows there'll be attending throughout 'twenty two.
Okay. Thank you.
Alright, thanks, guys.
Thanks, Matt Thank you.
Thank you.
Our next question will come from Mitra <unk> with Seb OTI.
Hi, yes.
Good morning, everyone. Thanks.
Chris I was just wondering if you could maybe give us a sense of the.
Competitive environment as we emerge from the pandemic, if you're seeing maybe some incremental volume as a result of maybe some of your competitor is not doing so well.
Yes Mitra.
Yes.
For me.
For me to measure their volume has been good.
Really good as the weather has improved as you've heard.
Where exactly that comes from.
I think or who were moving share from.
Really.
It's really tough for me to say.
I think throughout the pandemic, we probably move share from hospitals.
Small practices I think thats probably continuing.
We have a great team we didn't.
<unk>.
I was going to say, we didn't really pull back we've pulled back.
And for me a bit on our sales and marketing team.
Just look furloughs very early on but we've got those folks back pretty quickly and as offices open up so thats been back for a long time now. So I just think we have a great team I think they're really committed to what they do.
Our partners who are embedded in these partnerships forever, we're very connected to these marketplaces.
They do a great job as well and I think compared to just.
What I would put air quotes around staff new grads.
Other groups are thrown into facilities because.
They are trying to get a 100 de novo's open in a year something like that.
Tough to do.
It's really hard to do because the relationships out there and it's just a whole different dynamic so our folks are embedded there.
Long run I think that makes a difference.
No that's great. Thanks for the color there.
And on the IP side, obviously, you did a really nice size deal.
A few months back and just curious in terms of.
Well a couple of things the valuations you're seeing on that front and any concern that.
A lot of the service operators are having difficulty.
Staffing et cetera that might.
Maybe provided somewhat of a slowdown or maybe make you a little more cautious as you look to expand in this space.
It doesn't make me more cautious I think long term, we really like the business. It does what it's supposed to do it keeps people working really healthy way.
Big self insured companies stickiness of that business is very good overall.
So we like it so we're not.
We're not looking at the environmental issues.
The long term.
Inflection point for us in terms of changing our focus that said.
There are tens of thousands of physical therapy clinics across the country and not as many targets.
T side and so we're having good conversations and we will continue as we have in the past both on PC and injury prevention.
Active and we'll continue to look at what we think are the best long term opportunities for the company and then in terms of pricing, it's tough to say in general our blended pricing for injury prevention and glass.
The last deal we did was it was was.
Higher than we've done in the past, but I don't know that we have.
<unk> trend.
But clearly demonstrates one of that is pricing on the PC side as high as it's been in my career and so it's competitive there.
But cheap, but we're getting good things done.
It's a good time for <unk>.
Your PT company and Youre assuming.
It's a good time to give us a call so.
Yes, it's a healthy market.
Okay, No that's great. Thanks for taking the questions and congrats on a nice quarter.
Yes, Thank you Mitra for sure.
Thank you again that is star one to ask a question.
Yeah.
Alright, and we currently have no questions in the queue at this time.
Okay, well listen thank you everybody great questions I. Appreciate your participation. This morning, we've got continued a lot of work to do and we appreciate your support thank you and have a great day.
Thank you ladies and gentlemen, this concludes today's teleconference and we appreciate your participation you may disconnect at any time.
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Okay.
[music].
Okay.
[music].
Okay.
Yes.
Yes.
Yes.
[music].