Q2 2022 Quanterix Corp Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
[music].
Hello, Thank you for standing by and welcome to the Quanta Terex Corporation second quarter 2022 earnings Conference call.
At this time all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During this session you will need to press star one one on your telephone. Please be advised that today's conference maybe recorded I would now like to hand, the conference over to your speaker today, Mike Doyle the CFO . Please go.
Ahead.
Thanks very much.
Good afternoon, everyone and thanks for joining us today with me on today's call is Masoud, <unk>, President and Chief Executive Officer on Terex.
Before we begin I would like to remind you about a few things call will be recorded and will be available on the investor resources section of our website.
Today's call will contain forward looking statements that are based on management's beliefs and assumptions and on information available as of the date of this call.
We may not actually achieve the plans intentions or expectations disclosed.
Our forward looking statements forward looking statements involve known and unknown risks uncertainties assumptions and other factors that may cause our actual results performance or achievements to be materially different from any future results performance or achievements expressed or implied by the forward looking statements.
To supplement the company's financial statements presented on a GAAP basis. The company has provided certain pro forma financial measures.
Management uses these pro forma measures to evaluate the company's operating performance in a manner that allows for meaningful period to period comparison and analysis of trends in its business.
Management believes that such measures are important in comparing current results with other period results and are useful to investors and financial analysts in assessing the company's operating performance.
The pro forma financial information presented here should be considered in conjunction with and not as a substitute for the financial information presented in accordance with GAAP.
Investors are encouraged to review the reconciliation of these pro forma measures to their most directly comparable GAAP financial measures set forth in the appendix of this presentation.
The risks and uncertainties that we face are described in our most recent filings with the Securities and Exchange Commission.
That I will now turn the call over to Ms. Sue.
Thank you, Mike and good afternoon, everyone.
We're at a unique and transitional moment, both at <unk> and in the broader life science industry.
Never before have there been more measurable parameters to assess normal or disease processes in human health.
Using new biometric screening imaging genomics and proteomics technologies this industry.
Hoping more lab parameters to discover and help make decisions in this assessment and diagnosis and treatment of disease.
Even more importantly industry participants are accelerating our understanding that the multi marker approaches and the data associated with them will create better predictive indication of changes in protein state and expression.
<unk> fits in our key translational space and as continuum.
Our ultra sensitive detection of protein uniquely propels, new discoveries and early indications of disease.
Alzheimer's is one of those diseases, whether then early symptom free phase that if detected.
Could revolutionize the way we treat patients.
An important step in this direction last week, we launched the first Pizza 181 plasma laboratory developed test for clinical diagnostics and research.
This is an early move as we arm, our researchers and clinicians with new tools to provide insights into poorly understood pathologies and empower our therapeutics companies with a growing menu of multiplex blood based markers to advanced brain health.
Now <unk> is that a pivotal juncture where operations <unk>.
<unk> ability to scale and have not kept up with growth in customer demand for our <unk> technology.
This has manifested itself and the quality challenges that will in the near term have impaired our growth rates.
Cost to manufacturer assays with current processes are not sufficient in the long term.
Following our strategic review and top down assessment of our operations, we announced a comprehensive plan. It was imperative to fully realize the potential of Samoa by ensuring the Companys technology is built and scaled with operational rigor.
Excellent.
First.
We have set in motion an assay redevelopment program with the objective of improving our ability to manufacture and deliver high quality assays at scale.
We anticipate making initial progress this year and expect to complete this program in 'twenty three.
Second.
We have refocused and aligned our capital and resources along three go forward principles quality.
Innovation and.
And positioning <unk> to unlock the value of translational markets.
We have initiated several decisive action to reallocate resources and capital eliminating projects and reducing spend on initiative not related to assay redevelopment.
Innovative research.
These adjustments will put us on a path to accelerate our return to strong growth.
Put us in a position to achieve positive cash flow.
These actions will result in a reduction in force affecting approximately 130 employees across the company's worldwide operations.
Onto our Q2 results.
We reported total revenues of $23 5 million, which represents a 7% decline year over year.
Revenues were impacted due to a reduction in consumable revenue as we addressed asset quality challenges.
As shown on slide three consumables revenue declined year over year by 29%.
As I discussed we have initiated critical steps to realign our business. So we can focus on improvements required to remediate these challenges.
On a pro forma basis Q2 gross margin was 28, 3% versus prior year Q2 pro forma gross margin of 47, 5%.
Our Q2 gross margin reflects the reallocation of resources.
Mainly head count to our ongoing quality related activities as well as an adjustment relating to shipping costs.
Cost of goods sold.
These increases to cost of goods have a corresponding reduction in operating expenses with no overall change to the Companys total expenses.
Mike will provide additional details in a moment.
We believe presentation of pro forma gross margin provides visibility into the progress of our quality process initiatives and their improvement on our cost of quality.
Forward looking we now expect total year 'twenty, two revenue to be flat compared to total year 'twenty one.
On a longer term basis, we expect to return to double digit revenue growth in 2024, when the benefit of our restructuring and business realignment plan are fully realized.
And to accelerate at a faster pace once new growth categories are unlocked.
The difficult, but necessary changes to improve our operations and cost structure are far reaching and will affect approximately 25% of our employees across the company.
Worldwide.
We regret the impact of these changes on our departing employees. Thanks.
Them for their contribution to our company.
Moving forward from here, we are committed and focused on executing to achieve our operational market and growth goals.
We are dedicated to advancing our mission of transforming diagnostics of neuro degenerative disease bio.
<unk> current research and discovery.
Today, we also announced that Kevin <unk> has stepped down as our company's executive Chairman and is leaving our board of directors.
As we move forward in the next phase of our company's evolution. This is also a natural point in the evolution of our board structure.
I would like to thank Kevin for all his efforts and helping <unk> become a leader in our field.
With Kevin's departure, the board has appointed Martin <unk> to serve as independent Nonexecutive Chairman of the board.
Martin is deeply familiar with our company and industry and I look forward to working with him in his new role as we embark on the next phase of our journey.
Now I'll turn it over to Mike to discuss some more financial details Mike. Thanks.
Thanks Masoud.
Im going to provide some additional financial details about our second quarter 2022 performance.
And for your reference for those following on the call it will be slide number three.
As <unk> noted our total revenue in the second quarter of 2022 was $23 5 million a 7% decrease from the second quarter of 2021 revenue.
We had product revenue in the second quarter of $2014 8 million, a decrease of 21% versus the second quarter of 2021.
Within product revenue consumables revenue was the biggest driver of the shortfall declining 29% versus the second quarter of 2021.
As <unk> discussed we had quality related issues that we are addressing.
Instruments declined 4% versus the second quarter of 2021.
However, during the second quarter, we shipped 10 instruments with a value of $1 $9 million to a new customer, which we did not record revenue due to the startup nature of the business. We will be recording this revenue when the cash is received.
Second quarter 2022 service revenue increased 51% versus the prior year second quarter to $8 5 million.
Included within services revenue is $2 7 million recognized during the second quarter of 2022 from our collaboration with Eli Lilly announced during our Q4 2021 release.
I would now like to spend some time talking about gross margin for the business.
During the second quarter based on a deep dive review of the business. We've made a few changes in how we capture costs in our P&L this quarter.
We've changed the cost allocation of three departments based on their focused activity when quality and operations.
In addition, we are capturing freight cost not billed to customers and recorded as operating expenses as a pro forma adjustment to cost of goods sold.
We've made these changes to give greater visibility into our quality activity and allow investors to better monitor our progress.
First let me walk you through the impact of that change from the first quarter of this year to the second quarter of this year.
If you look at slides five and six we have bridge gross margin and operating expenses from the first quarter gap to our second quarter pro forma presentation.
When you look at the gross margin change from our GAAP Q1 performance to pro forma Q2, both the allocation change and freight expenses have corresponding operating expense decreases which you can see on slide six.
The gross margin decline of 21 percentage points from our first quarter GAAP to our second quarter pro forma 16 of the 21 points relates to the allocation change and pro forma freight adjustments the.
The remaining difference reflects volume and mix shortfall, primarily due to the decline in consumable revenue mentioned previously.
Partially offset by the improvement in our excess and obsolete charge.
Now, let's review margin performance for the quarter versus prior year and for your reference that will be captured on slide seven.
Our second quarter 2022 pro forma gross margin was 28, 3% compared to 47, 5% in the second quarter of 2021.
Two factors that drove this change.
First revenue declined versus prior year with the biggest shortfall coming my highest highest highest margin product consumables.
Our volume and mix contributed 10 percentage points to the margin decline.
The change in allocation was made in Q2 impacted margin approximately seven percentage points versus the second quarter of 2021.
Our pro forma operating expenses totaled $31 6 million in the second quarter of 2022, an increase of $5 9 million versus operating expenses in the second quarter of 2021.
Major expense drivers, where head count increases.
Stock compensation expense and increased lease expense related to the new facilities in Bedford, Massachusetts.
We are considering our options, including terminating the lease or sublease seeing some or all of the space in order to reduce the drag on operating expenses.
During the second quarter of 2022, our cash balance decreased by $13 million ending ending unrestricted cash balance was $361 3 million at June 32022, and basic weighted average shares outstanding of earnings per share totaled $36 9 million for the second quarter of 2020.
Two.
Cash outflow from operations was $8 million during the quarter driven by higher operating expenses, primarily driven by head count increases and Capex, partially offset by tenant improvement rebates from our landlord and the new Bedford facility.
With approximately $10 per share in cash and no debt our balance sheet remains in excellent shape, and we are well positioned with adequate resources to pursue our strategic objectives.
The difficult decision, we have made with our restructuring announced today will reduce expense on an annualized basis by approximately $25 million, excluding the impact of our lease facilities in Bedford, Massachusetts.
This helped to offset the reduction in revenue guidance and allows us to continue to strategically invest going forward.
The changes we have made and how we show our financial results, we will provide greater visibility to investors going forward and allow you to see our progress towards improved quality and scalability.
With that I'll turn it back to masoud.
Thank you Mike before we get into questions I want to summarize a few important points.
First the market opportunity and neuro degenerative research and the demand for ultra sensitive tools for early biomarker detection.
Strong singer.
From Grant agency spend clinical enrollments.
The drug in late stage trials, we expect continued growth in this category.
Second.
We have shown through our over 800 publications at some our technology is a robust and critical element and advancing discovery and accelerating drug approvals from research to post market clinical studies.
Some of our blood based testing can enable noninvasive cost effective identification of patients more likely to benefit from disease modifying therapy.
Accelerating trial enrollment and increasing profitability of approval.
There is no mistaking that we do have some challenges, but we've sized and understand them and have a comprehensive operational plan to address this.
This plan will improve our quality and manufacturer ability of our assays, allowing us to both scale and improve our cost structure and preparation to accomplish our translational goals.
It's the single greatest priority of the company and we've aligned our resources around it.
Conclusion of this transformation.
<unk> will be profitably, capturing a larger share of the proteomics market innovating and growing at a much faster pace than before and in a leading position to propel new discoveries advancing neuro degenerative disease research and diagnostics.
We can now open the line for questions operator.
Thank you.
Mind or to ask a question you will need to press star one on your telephone please limit yourself to one question and one follow up please standby we compile the Q&A roster.
Okay.
Our first question comes from Puneet <unk> with SBB Leerink you May proceed.
Yes, hi, Thanks for question. So first one is really I mean can you talk a little bit about the quality challenges and just walk us through that.
Why was this not.
Sort of detected identified earlier.
And also help us understand sort of what is the ongoing impact to.
Sort of how much is it to the clinical trial side of the business versus to the academic side of the business help us understand what is what is what exactly happened on the quality side of consumables.
Alright. Thanks.
Thanks for the question so on the <unk>.
Low quality side.
Clearly and as you can see from some of the charts that we provided.
High cost of quality for our assays.
And that cost involves our manufacturing process some product stability.
And.
The cost for that includes rework scrap higher distribution costs.
So that level of rework required to send their products with quality isn't going to be something that we want to continue our sustainable in the future. So that's why we're launching because redevelopment program for our assays.
Sure we have sustainable growth.
Question related to the clinical customers.
<unk> done a lot of work in piloting some of our redevelopment efforts on our accelerator lab and so.
The work that's done in our accelerator lab.
<unk> includes a lot of initiatives around quality and so from that perspective, a lot of our clinical customers and the work that we're doing an accelerated benefit from that and so.
We are able to.
Mitigate and.
Work around many of the quality challenges, we have that being said, it's going to be a significant effort and that's why we've reduced our guidance for the year.
Okay and then.
On the guidance I mean sort of what gives you confidence in this flat year over year Guide I mean, you are.
You said.
The 25% of the employees.
Are being laid off so just wanted to understand I mean, what gives you confidence given that this obviously causes of disruption within the workflows overall morale and such so there could be further impact from that and just walk us through what gives you confidence on the flat number for the year.
Yes.
Good question the concept of.
The guidance we.
We believe first of all there is no decrease in demand.
I would say that demand for some of our products and our ultra sensitive detection.
Is unmatched and our customers need the ability to measure.
<unk> proteins at low levels and so that's a.
Strong positive to obviously with the high growth. We've had we have to take a step back on developing some of the products and assays. So that can sustain that growth in the future.
We've focused.
And this reduction in force to.
Really around two tenants as I talked about on the call one.
The focus on quality and as redevelopment program and to around our innovation and so from a.
Focus and resource perspective, we haven't reduced that at all we've put all our effort in those baskets.
And we think that the.
New focusing helps from a cost perspective.
And and are focusing perspective.
And just last one for me.
Does this impact your agreement with Eli Lilly or other private prior commitments that you have with <unk>.
Pharma companies, including the prior record.
Paul you had agreements with Abbott.
BARDA and other government agencies as well so just wanted to do.
I understand.
Which ones those are impacted at this point.
None none of those that you mentioned are impacted we don't have any.
Don't expect any impacts to the collaborations that we have or that we've announced we don't anticipate any.
Adding that back to them at all.
Okay.
Alright, thank you.
Thanks Bonnie.
Thank you one moment for questions.
Our next question comes from Max Masucci with Cowen You May proceed.
Hey, thanks for taking the questions.
Yes.
We've been a longtime supporter of commentary.
The company's mission.
But this will be a bit more bluntly lots of questions I guess just to start.
<unk>.
What triggered the strategic review of the business.
Sounds like manufacturing.
Was one.
Area focus but.
Can you explain the other items that were on the short list of key findings from the strategic review, whether it's kwan taxes competitive positioning.
Putting pretty on the ecosystem.
Anything else.
Hey, Max Thanks for the question the way first of all I think.
With me coming on Board I think.
Natural that there is.
Our strategic review of the operating model and then anyone knew it was coming to our business is going to take a look at how we want to allocate our resources and our capital and when we did a strategic review it was clear as you can see from some of our charts that.
Our cost to get <unk>.
Product to a customer are significant and we do a lot of rework and then they are scrap and higher distribution costs and that there's not going to be something thats sustainable in the future as we look for a profitable growth. That's number one number two we think this is an incredible time, where there are several trials.
Several.
Work around research and diagnostics, that's being done and there are few.
Therapeutics in the market that are becoming in the next couple of years and what better time to take a top down look at the business and get it into shape for meeting what we think is going to be pretty strong demand going forward. So it sort of hopefully provide some color on why the review.
Why they look back and why the focus on our operations.
Okay got it.
Yes.
A company with a relatively mature.
Cell based compared to specialty specialty tools peers consumables that have ramped nicely for years.
And still a very long runway for growth even in research and in bio pharma end markets I guess, one would assume that you'd probably be able to.
Sure.
Below breakeven with volume leverage, but it doesn't necessarily sound like Thats. The case after the strategic review.
Let me underline a major transformation.
Nearly 10 years ago chose to prove out the technology and Biopharma and research markets before strategic entry into diagnostics and that was in part due to the success at Illumina generated by employing a similar approach.
I'm still relatively unclear whether they go forward strategy is more or less diagnostics focus.
Yeah, and just how you're prioritizing.
Sure.
Yes, yes, yes.
So the way we think about this is first.
All of our revenues today are in the <unk>.
Research and translational market around.
Academia pharma and our CRO and Thats, whether its discovery of a new biomarker or that's translation of that biomarker into the clinic.
During a clinical trial. So that's the majority of our revenues and we want to ensure that we can sustain that base on a go forward basis now that being said as these markers are moving in this translational space and in pharma.
You could see the utility for them in a diagnostic setting and our view here is.
Look we want to be able to offer these tests in a diagnostic setting in our LDP Laboratory, we announced our <unk>.
<unk> hundred 81 for that purpose, but we don't anticipate.
A lot of volume or a lot of demand for that until there is a therapy on the market. So it's.
It's important to begin to make some small steps in there.
Diagnostics space, we think that'll be a bigger steps in the future, but now we want to focus our efforts on this translational place that <unk> played very well.
One comment Max you mentioned cash flow.
When we did the deep dive one of the things that you highlighted is that this cost to quality that masoud talks to and the ongoing need to put additional resources and.
We have additional expenses associated with product, we work and getting it in a place where it can go to market was going to be a drag on us getting to cash flow breakeven and I think we.
It's our belief that as we get these resolve that actually expedites versus the internal forecast. We did it all expedite is getting to cash flow breakeven. So we believed it was a necessary next step in addition to the other things that Steve mentioned.
Okay got it final one.
North of $300 million in cash.
A reduction in the size of the organization I think there has been.
A comment made lately around his desire to gain access to technologies that can improve your multiplexing capabilities, but just generally speaking you do have a strong balance sheet.
How should we think about how youre going to be.
Prioritizing the use of that balance sheet M&A, thanks for that sorry.
Yes, so the.
Our clear focus today is really one.
We want to make sure that we have scalability I think that demand in that opportunity.
We've seen in the market for <unk> is.
Our number one important the more we can scale and get these products to customers that need it.
Going to be our focus number two you talked a little bit about the multiplex and our efforts to continue around higher sensitivity.
That's another that's our second area, where we have to continue innovating as a company and we have some very interesting projects.
We hope to talk about in the future as we progress on some of those initiatives. So.
That's where we're really focusing the resources, we have the cash balance to be able to to focus on those two priorities and.
We talked about some of the focusing like Hey, this is.
This is where we want to pay attention to if there was something that helped.
Inorganically.
One of those two initiatives, we take a look at it.
But we wouldn't want to take a.
We'll look at anything that was distracting.
Got it thanks for the color.
Yes.
Thanks Max.
Thank you one moment for questions.
Our next question comes from Matt Thanks, with Goldman Sachs. You May have received.
Hey, guys. This is Dave on for Matt can you provide any additional color on how instrument growth has been trending and what you expect going forward.
Hey, Dave instrument growth, particularly when you look at the placement activity I mentioned that we didn't bill for instrument growth has been consistent.
Similar to Q1 and similar to Q4 in the prior year. So the placement activity from an instrument standpoint was actually good HD X up a bit more this quarter. If you remember last quarter was a little softer in Srs was up so from that instrument placement standpoint, I think we're performing consistently.
So I don't see challenges there at this point.
Great. Thanks.
Thank you one moment for questions.
Our next question comes from Carl Mixon with Canaccord you May proceed.
Thank you.
Alex This is Tom Nixon.
Quick question on competition, So Labcorp lost NFL blood based test.
The detection and verification of size.
Judy.
Mid July .
And then there's also the Siemens <unk>.
Im NFL assay.
Achieved edd.
In March it's nicely too.
So I was just.
Kind of highlights.
Some of the.
Differentiation of Euro Bell tests versus some of these competitors.
Is it mostly like sensitivity value proposition or do you feel that that's not like pain.
Sure.
Christian of Euro sell tests versus some of these competitors and is it mostly like sensitivity value proposition or do you feel that that's not like pain.
Sure.
Thank you.
Hey, Alex your line was breaking up.
We heard the second part of your question about the.
Siemens NFL test I didn't catch the first part of your question, but maybe I can start on the Siemens and then you could repeat the first part so when we look at our test our NFL.
We.
Two things are important and two things are important to keep in mind.
<unk>.
We have the largest number of publications around neuroscience.
Versus any other company or.
Provider of that platform, so that publication record is incredibly strong.
We talked about last quarter.
Big large normative study around NFL and baseline Inc. NFL levels.
In order to create a baseline based on weight and.
BMI and so that was a incredible study across thousands of.
People that provide a lot of information and make.
Data points of NFL incredibly useful to both users of similar in other year. There. So that's very.
A very important point and then finally I just want to make a comment that it's the if youre looking at sensitivity, it's a combination of.
Great antibody, but it's also the similar technology, that's going to allow that ultra sensitive to all.
Ultra sensitivity and give you.
The best Best results. So it's a combination of both.
We support Siemens and their initiative, we talked about Siemens being a partner.
And I'm using our antibody and so we want to promote the use of.
Some of our and our NFL product.
All around well I didn't catch the first part of your question could you repeat that.
Hi, Paul.
Apologies for the miscommunication on line.
No.
Great answer My first question was actually just.
So if they open the question and it was related to a labcorp and other launch an NFL a blood based test.
In July .
Yes.
Yes so.
We saw that from lab core I think that's a great Testament to what we're going to see is more and more interest in.
A marker for brain health and I think Thats a.
Excellent.
Indicator that there is appetite in the market.
Brain health is probably one of the most difficult and costly.
Ways to diagnose pathology or disease and.
That was a big plus we.
I applaud that and we hope that there is more.
More companies out there that are going to be doing testing with NFL.
Excellent. Thank you for thank you.
Ill provide some more color on that.
One additional question and then I'll hop off and apologies.
I had to hop between call came in a lot of volume today.
Just to kind of highlight what are your goals for 2022.
The Bvd Pizza pizza.
<unk> hundred 80 <unk> okay.
Awesome. Thank you.
In short order.
Another one of your objectives is to achieve.
T validation for Pizza I'm wondering you want as well as clinical trials for detail on any one and other biomarkers.
Curious if you could provide any more.
Color on that.
Thanks.
Okay.
Your line was breaking up again, but I think I got the.
The basis of the question. So just to provide an update we received are.
<unk> 181 breakthrough designation last year, and our NFL breakthrough designation this year.
And those continue.
They are both single site IBD applications with the agency and.
The big update or change I think was a couple of weeks ago. When we launched at AIC. The first <unk> hundred 81 laboratory developed test.
For as an aid in the diagnostic and so we think that progress is very important because one.
Available in the near term through our accelerated laboratory to it provides a great sandbox for us to work with.
Pharma and CRO that are very interested in our <unk> test.
And then three as being the first one in the market with the most sensitive platform.
Paves, a great way for more work in the future. We don't expect it from a diagnostic standpoint to be a big revenue generator, but I think.
<unk>. This way is the first step is an important milestone for us and happy to say that we achieved it.
Thank you very much.
Thank you Alex.
Thank you and I'm not showing any further questions. At this time I would now like to turn the call back over to Mr. <unk> for any further remarks.
So thank you for participating today, we look forward to turn the call back over to Mr. Lu for any of you on our next quarter's call.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
The conference will begin shortly to raise your hand during Q&A you can dial one one.
[music].
Okay.
Okay.
Yes.
[music].
Okay.
[music].
Yes.
Sure.
[music].
Okay.
[music].
Thanks.
[music].
Yes.
Yes.
The conference will begin shortly to raise your hand during Q&A you can dial one one.
[music] okay.
Okay.
Yes.
Okay.
[music].
Okay.
[music].
Yes.
Yes.
[music].
So.
Dan.
[music].
Sure.
The conference will begin shortly.
Raise your hand during Q&A you can dial one one.
[music] okay.
Yes.
Yes.
Okay.
Okay.
[music].
Okay.
Okay.
[music].
Yes.
[music].
So.
Okay.
[music].
So.
Dan.
[music].
Thank you.
[music].
Sure.
[music].
Okay.
[music].
So.
Okay.
[music].
Okay.
Okay.
Okay.
[music].
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
[music].
Okay.
[music].
Okay.
[music].
Okay.
Thank you.
[music].
Okay.
[music].
Yes.
Okay.
Okay.
[music].
Okay.
[music].
Okay.
Okay.
Yes.
Yes.
[music].
Great.
[music].
Okay.
Please.
Okay.
[music].
Tom.
Okay.
[music].
Sure.
[music].
Okay.
Okay.
Yes.
[music].
Okay.
[music].
Okay.
Please go ahead.
Okay.
Yes.
<unk>.
Okay.
Yes.
Okay.
Yes.
[music].
Okay.
Okay.
Thank you.
Thanks.
Thanks.
Thank you.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Please go ahead.
Okay.
Yes.
Sure.
Yes.
Okay.
[music].
Okay.
Okay.
Yes.
Thank you.
Yes.
Okay.
Thanks.
Yes.
Go ahead Sir.
Okay.
Thank you.
Okay.
Okay.
Okay.
Thank you.
Sure.
Yes.
[music].
Great.
Yes.
Thank you.
Sure.
[music].
Okay.
Okay.
Okay.
Great.
[music].
Okay.
Hello.
Okay.
You bet.
Yes.
Okay.
Thank you.
[music].
Okay.
Yes.
Okay.
[music].
Yes.
Thank you.
Yes.
Thank you.
Okay.
[music].
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
[music].
Right.
[music].
Okay.
Yes.
Okay.
[music].
Yes.
Okay.
Okay.
[music] changes.
Yes.
Yes.
Okay.
Yes.
Thank you.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Sure.
Yes.
Okay.
Okay.
Okay.
Okay.
[music].
Okay.
Yes.
Okay.
Okay.
Okay.