Q3 2022 Globus Medical Inc Earnings Call
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The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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Welcome to Globus Medicals third quarter 2022 earnings call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
I ask a question during the session you will need to press star one one on your telephone and you will then hear an automated message advising you that your hand is reyes.
Please be advised that today's conference is being recorded.
I will now turn the call over to Brian Kearns Senior Vice President of business development and Investor Relations. Mr. <unk>. Please go ahead.
Thank you Stacy and thank you everyone for being with us today.
Joining todays call from Globus medical will be Danskin, debello, President and CEO , and Keith Pfeil, Senior Vice President and Chief Financial Officer.
This review is being made available via webcast accessible through the Investor Relations section of the Globus medical website at Www Dot Globus medical Dot com.
When we begin let me remind you that some of the statements made during this review are or may be considered forward looking statements. Our Form 10-K for the 2021 fiscal year and our subsequent filings with the Securities and Exchange Commission identify certain factors that could cause our actual results to differ materially from those projected in any.
Forward looking statements made today.
Our SEC filings, including the 10-K are available on our website.
We do not undertake to update any forward looking statements as a result of new information or future events or developments. Our discussion. Today will also include certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We believe these non-GAAP financial measures provide additional information pertinent to our.
Business performance. These non-GAAP financial measures should not be considered replacements for and should be read together with the most directly comparable GAAP financial measures reconciliations to the mostly most directly comparable GAAP measures are available in the schedules accompanying the press release and on the Investor Relations section.
Of the Globus medical website with that I will now turn the call over to Dan <unk>, our president and CEO .
Thanks, Brian and good afternoon, everyone.
We achieved a strong third quarter with growth throughout our business delivering sales of $254 million, 11% as reported or 13% in constant currency growth with non-GAAP EPS of <unk> 50 include.
Including significant nonoperational headwinds for currency and tax rate that Keith will discuss later in the call.
USPI had a great quarter with 9% growth and notable gains across our product portfolio and expandable.
<unk> printed implants, surgical and lateral offerings biologics in pedicle screws.
Gains were driven by competitive rep conversions and robotic pull through.
Our competitive recruiting is tracking ahead of prior year and as we enter into Q4, the strong recruiting pipeline should lead to a record recruiting year setting the stage for meaningful growth in 2023.
I'm pleased with the growth acceleration delivered by the U S team.
Enabling technology sales were $24 million up.
20% on a constant currency basis versus prior year, driven by robotic and imaging system sales, we're seeing increased interest in placements both domestically and internationally.
This was our highest Q3 since launching enabling tech surpassing last year's Q3 sales that delivered 124% growth post COVID-19.
Robotic procedures continued to accelerate growing 48% versus prior year and exceeding approximately 40000 robotic procedures performed to date.
<unk> three D imaging system rollout is going well as we continue to penetrate the market and increase orders for future deliveries entering Q4, our pipeline is strong for both robots and imaging systems.
<unk> GPS and <unk> are two foundational pieces of the digital ecosystem, we have been talking about designed and built from the ground up to communicate between each component and surge and seamlessly in the operating room. The system provides a scalable and unmatched clinical experience for the surgeons.
The successful rollout and market acceptance of <unk>, GPS and <unk> three D validates our direction and strategy.
We're making significant progress developing other components of the ecosystem with plans to enhance our offering over the next several quarters to fulfill our goal of changing the way musculoskeletal surgery is performed.
On the international front, our spinal implant business delivered a record sales in Q3 growing 25% on a constant currency basis compared to prior year we.
We delivered double digit growth in most markets, including the UK, Australia, Brazil, India and Poland.
For our growth rates continue to exceed 40% for each market.
I remain impressed with our international teams performance and the potential of our international business to contribute to our long term growth.
Our trauma business delivered another record sales quarter growing 83% versus prior year, and 20% sequentially versus Q2 'twenty two.
Trauma performance is driven by sales force expansion and strong uptake in all 14 product lines delivering high double digit growth in each product offering.
In Q4, we have two meaningful launches planned to further strengthen our offerings and fuel continued growth.
Our recruiting pipeline is strong entering into Q4.
As I mentioned last quarter despite.
Despite being faced with supply chain challenges, we've been able to offset vendor delivery delays and supply shortages without significant impact to sales.
To remediate extended vendor lead times, we've altered our ordering pattern to increase inventory levels. The electronic component market remains difficult, but has been offset so far by our nimble procurement team. In addition to these disruptions freight surcharges continue to impact our cost of goods.
We will continue to seek offsets to mitigate these challenges.
Our product development engine continues to make progress focusing on procedural solutions designing implants instrumentation and procedures that will function together with our global ecosystem for seamless and comprehensive approach in spine trauma and joints.
At the same time.
We are expanding our solutions to cover the comprehensive continuous care supporting surgeons in preoperative planning intra operative execution and post operative patient care, capturing outcome data that can be used to enhance future surgical planning.
While this complex approach has extended development timelines beyond our historical rapid pace.
I believe the upcoming launches will have greater significance in shaping procedures of the future.
In addition, we've increased our investment in supply chain to boost output streamlined manufacturing and enhanced production capacity supporting our continued growth.
As you move into the final quarter of 2022, we remain focused on three core elements for long term growth.
Innovative new product introductions.
Robot in imaging system sales.
And competitive rep recruiting.
I am pleased with the Q3 results throughout the business with high single digit growth in U S spine strong performance from enabling tech record international trauma sales and meaningful progress in bringing ecosystem procedural solutions closer to reality.
Q4 is all about focus and execution to deliver value to our customers and drive growth I know, we are well positioned to achieve our mission of becoming the preeminent muscular skeletal company in the World I will now turn the call over to Keith.
Thanks, Dan and good afternoon, everyone.
Globus delivered on a strong third quarter with significant sales growth across its portfolio and is reflective of our continued ability to take share in our markets remains a testament to our drive focus and continued investment in our people and products.
Third quarter revenue was $254 1 million growing 10, 6% as reported and 12, 6% on a constant currency basis as compared to Q3 of 2021.
Q3, net income was $47 $4 million essentially flat to the prior year quarter.
non-GAAP net income was $50 3 million compared.
Compared to $52 7 million in the prior year quarter and delivered 50, a fully diluted non-GAAP earnings per share flat to the prior year.
Our Q3 results include seven of non operating headwinds driven by a higher tax rate and currency, partially offset by higher investment income and a lower share count.
Adjusted EBITDA was 32, 6% and includes a one 7% unfavorable currency impact in the quarter.
During the quarter, we generated $29 million of free cash flow.
Moving into sales, our third quarter U S revenue was $217 million growing nine 5% versus the third quarter of 2021 led mainly by U S spine.
Dan's earlier comments provided insights into the drivers of growth.
To help further put that into context, our U S. Spine business has grown 26, 1% over the trailing four quarters when compared to the full year 2019.
This longer term growth figure as an important call out given the quarter quarterly COVID-19 impacts we've seen over the past few years and underscores our continued confidence in our U S spine business.
International revenue for the third quarter was $37 1 million growing 17, 7% as reported or 31, 8% on a constant currency basis.
Strong growth was seen across our spinal implant portfolio as Dan mentioned earlier. In addition to this implant growth. We've continued to see solid gains like Celsius GPS sales growing internationally, mainly in western Europe .
Profit in the third quarter was 74, 2% compared to 74, 5% in Q3 of 2021, the slight decline in gross profit was driven by product mix continued freight inflation as well as non operational currency impacts, partially offset by lower inventory reserves and improved operational spend efficiencies.
We estimate inflation had a roughly 50 basis point impact on the quarter between freight surcharges and higher material costs.
Q3 research and development expenses were $18 7 million or seven 4% of sales versus $15 9 million or six 9% of sales in Q3 of 2021.
The increased spending is predominantly focused on our U S spine and enabling technologies businesses and is in line with expectations.
These increases are driven by overall head count growth as we realign and further invest in our product development engine to focus on procedural solutions and expand the global ecosystem.
SG&A expenses for the third quarter were $106 6 million or 41, 9% of sales compared to $96 4 million or 42% of sales in the third quarter of 2021 the.
The increased spending is reflective of higher higher sales and marketing expenses driven by higher sales volumes as well as increased travel and meeting expenses offset by fixed cost leverage.
We continue to take a focused approach to managing our SG&A cost structure in a way that delivers against our needs while working to minimize negative inflationary impacts.
The effective income tax rate for the third quarter was 22, 8% compared to 13, 3% in the prior year quarter the.
The increased tax rate was primarily the result of lower tax benefits associated with stock option exercises.
Given this lower tax benefit we are now projecting a full year tax rate ranging between 22, 5% and 23%.
Our cash cash equivalents in marketable securities were $909 $3 million at the conclusion of Q3.
Net cash provided by operating activities was $32 9 million and free cash flow was $20 9 million as noted earlier.
Year to date free cash flow was $58 $8 million as.
It gives us continued investments in inventory as well as sets machinery and equipment.
To further facilitate our ability to drive growth into the future.
At this time the company is reaffirming its 2022 net sales guidance of $1 <unk> 5 billion. However, as a result of continued non operating headwinds we are revising our non-GAAP EPS guidance to $2 <unk> per fully diluted share versus the previous $2 10.
This reflects an additional <unk> <unk> currency headwind and a <unk> <unk> tax headwind versus our previous non-GAAP EPS guidance.
Our third quarter results delivered on our strong top line performance across the business spine realized strong growth in the U S and international trauma continue down this path of above market growth and our enabling technologies business demonstrated resilience and delivering its new and exciting technologies to the market that.
So we did experience more non operating headwinds than previously expected the business continues to deliver on its strong earnings quality as evidenced in our profitability, while maintaining discipline in our approach to cost and expenses, all while investing aggressively within R&D to drive continued future growth.
We look to continue to drive execution as we seek to close a strong fourth quarter and build momentum going into 2023 as always thank you to the globus team for their continued pursuit of excellence. The best is yet to come we will now open the call for questions.
Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced please standby, while we compile the Q&A roster.
Our first question.
It is coming from Matt mythic.
Barclays Matt. Please go ahead with your question.
Hey, good evening. Thanks, so much for taking our questions and congrats on a really strong top line quarter here.
So one one follow up if I could on just some of the drivers you mentioned in the quarter, particularly.
<unk> three D printed and.
And competitive recruiting.
If you could maybe update us on sort of.
How the mix of expandable <unk> have been driving the business.
What's been driving that in terms of demand and what does that do to margin mix and then.
Obvious question, given the sort of merger and acquisition activity in the space how if at all do you expect that to create new opportunities.
Recruiting.
Thanks, Matt appreciate the question so just a couple of things.
I'm signaling that the growth is really throughout the portfolio and so you are right is it expandable <unk> printed implants, but also the cervical lateral offerings to biologics of pedicle screws as really kind of a healthy growth throughout its not just one product outgrowing the others with that though I would tell you that the uptake of three D printed has been great.
Sable itself, the expandable really doing well and driving it that way. So I'm pleased with it those drivers beyond just existing and dedicated surgeons using us as again, the competitive rep recruiting, bringing in and helping us penetrate the market and as we've always stated once we put the robots out there pull through of robots is just.
Great way to get more volume and lots of good things through so it's really to me a healthy portfolio that way and I am pleased with the mix of growth among the products.
With recent changes that are occurring in the market certainly anytime there is a market of uncertainty that may get some folks jewelry and I think if anything globus is considered a stable growth high investment place a place that reps, who would want to be and so we'll look at that opportunity I'm not sure. We've seen anything of significance right now, but we'll keep our eyes open but.
Again, regardless of where it's coming from our goal is to continue to penetrate the market convert surgeons and reps regardless of where they currently are.
And one for Keith if I could just on margins.
No.
Youre not as global as some of the larger global Med Tech companies in the space that have all been held down and impacted by some of the factors you mentioned FX in particular can you talk a little bit about how.
How you we should expect that to kind of carry over into next year, maybe with some of the math is dropping through to the P&L on FX given that that was part of the reason for the slight miss to expectations in this and the guide down on the bottom line.
Sure. So thanks for the question. So as we go into next year I think it is fair to assume that our <unk> business will continue to grow faster than our U S business as.
As we as we really grow deeper in the markets that we're operating in so I expect us to we're still primarily U S. But over time, our <unk> business is going to continue to grow and grow as.
As I think about this year and the currency impacts last quarter I talked about having about a 9% currency impact and we felt that we were able to really offset that with the impact of the share buyback and some higher interest income when.
When I look at Q3 alone our Q3 currency impact was greater than what we experienced in the first two quarters. So as I look out the guidance change going from $2 10 down at 203 five of that is simply because of the higher currency impacts versus what we previously expected.
That's helpful. Thanks, a lot Keith Youre welcome.
Standby for our next question.
Our next question is coming from Vik Chopra of Wells Fargo. Please go ahead with your question.
Hey, good afternoon, and thanks, so much for taking the question.
Two for me.
First one on capital equipment.
Wondering what you guys are hearing on how hospitals are thinking about their capital budgets for Q4.
And any sort of color you can provide an expectations for next year and then my follow up question is on 2023, not asking for guidance, but any sort of potential headwind the tailwind, we should sort of be cognizant.
As we head into next year. Thanks, so much.
Thanks, Doug I'll take the first one.
I would think it was anything to hospitals still remain under some level of pressure, whether it be staffing or paying for traveling.
The thought of recession different things like that so I would just tell you that.
The selling cycle is probably turning back to what it was pre COVID-19, meaning taking about nine to 12 months for where that is and certainly we're looking at that we haven't seen any real stops or hesitation with anything yet to date.
Hard to say, what Q4 will do we're sitting at the election night and things could always change in one way or another so there is some uncertainty out there, but nothing that would be of a concern for us and nothing that we would have reflected in our guidance as we round out this year.
Ill, let Keith kind of respond but on 2023 I would just say I think we'll be in a better spot to discuss that more in January as we go out and give our guidance and stuff right now I'm not sure. There's anything that I would see that I would want to signal out in advance to the investors.
Just a couple of comments that I would add there is just some of my earlier prepared comments I really talked about third quarter delivering strong top line performance.
Really across our portfolio and as I look ahead, we feel good about our business. That's what that's what that statement was intended to imply we felt good about where we're going from a business, whether it's musculoskeletal or enabling tech as I think about.
Headwinds or tailwind going down the P&L and we're going to continue to obviously monitor currency impacts that happen out there, which is really nonoperating, but also the impact of inflation, that's something that is real and something thats out there as time passes perhaps the fuel surcharges will change, but right now I don't really have any further comments to add as it look as it relates to 2023.
Standby for our next question.
Our next question is coming from <unk>, Zhang with RBC.
Go ahead with your question.
Thank you so much for taking my question.
Dan I was just wondering if you could elaborate on the recon robotic launch.
As it relates to timing.
Software is a full launch in 2018.
What will be unique about the value proposition, how you should think about economics.
Really what I'm trying to get at.
You talked about the best is yet to come and I'm just wondering how meaningful this launch could be important in helping you drive an inflection in sales and 23.
Thanks again I appreciate the question so.
The Big question, there is that we need to get that filed and approved from the FDA. So to call out timing in 2023 would be difficult right now to be hesitant to do it certainly our goal is to have that later in the year I just don't have a clear line of sight to tell you I feel strongly if thats Q3 or Q4.
With that and without talking a lot about the features because it's yet unapproved I will tell you that.
Excited to bring this forward I think there's meaningful differentiation in it I think that it will certainly help us in penetrating this market in offering a very viable solution that's out there, but I'll stop there we'll get further along in that perhaps later in 2023, you and I can have a deeper conversation about that.
Got it that's helpful. And then I was just wondering if you could elaborate on the enhancements on additional component and you expect to add <unk> <unk> platform to maintain and probably enhance their competitiveness and any timing you can check that thank you for taking the question.
I think.
If anything we continue to evolve and add to it and look to learn and improve with it I think the closest to come out that will be a significant differentiator is going to be our XR headset or augmented reality and I think with that we're going to actually shift how procedures are done at a great deal of value to the surgeons and I would think thats.
Probably the biggest upcoming addition into that ecosystem platform that we're looking towards right now.
Thank you.
Standby for our next question.
Our next question is.
Coming from Richard <unk> with <unk> Richard Please go ahead with your question.
Hi, Thanks for taking the questions.
So just a couple for me maybe just on your U S growth rate re accelerated nicely.
Back towards 9%, you've been double digits for a period of years leading into Covid.
And through Covid, and then obviously, there's some distortions that 20% growth rate you throughout.
Thank you for that but how should we think of the go forward what is the normalized kind of.
Our U S spine growth rate for Globus, especially with all the competitive rep hiring momentum you have you have easy comps sustaining into next year. Just can you give us a sense as to what we should expect and should it even accelerate.
Thanks for the question.
I think as we look ahead this business from a U S volume perspective, we still have a lot of room to grow.
We know that our number overall is getting larger but Dan commented on competitive rep recruiting as well as the pull through that we're seeing from robotics and just the development of the ecosystem from my perspective, we should be a high single digit grower as we look ahead and in the U S spine market we.
So we feel really good about where the business is and really feel good about where it's going.
Yes, I would add to that rich just again, we're approximately a nine share in the U S that gives us a lot of runway to go.
Obviously, it's predicated on meaningful ways to address unmet clinical needs and so at the end of the day, it's going to be about the right products and making a difference that allow us to do that growth and so we're not going to lose focus of that.
That said for the near future I would say that that mid to high single digit in the U S is something that we would want to take a look at okay.
Okay. Thanks.
What about <unk>.
Split between imaging and robots or if theres any way you could give us a sense as to whether or not youre robot component grew.
Year over year in the third quarter, just trying to get a sense of what's driving that thanks.
Yes, I appreciate that and.
Obviously for competitive reasons, we're not looking to split that out at any level of detail and so I would just tell you very pleased.
With our enabling technology growth of both robot in imaging.
But splitting that out it's something I'm going to refrain from doing right now.
Okay, Thanks, and if I could do one more just.
Should we think of operating leverage going forward and where your target EBITDA margin is especially with some of the non operating items that are at play in the P&L. Thanks.
Yes, so I'll take that question so from a SG&A perspective fixed cost leverage youre thinking we're thinking 1% to two points Max as we look ahead.
As we as we look at the business going forward, we should be able to get more efficient in and drive the business forward without adding a lot of incremental cost. So one to one to one five points is probably where we think leverage will take us.
Thank you.
And for the next question.
Our next question comes from Matt O'brien with Piper Sandler Matt you have required.
Oh, great. Thanks for the question.
So.
If I look at Columbus pre pandemic, you were kind of high single digit low double digit top line grower.
Adding this year to 7% you got this robotic tailwind pull through trauma <unk> coming international business and scale quickly. So as I look at the street numbers for next year at 9%, it's back to kind of that pre pandemic level do you think about globus in that that kind of pre pandemic level of revenue.
Over the next several years high singles to low doubles.
I think this is Keith as.
As we think about the business and again I fall back to some of the things that both Dan and I said the business is operating and performing across our portfolio. We feel that we have good products coming Dan comment on some have commented on some of those so short answer is yes, we feel good about our portfolio.
As things happen.
It's never perfect for everything to hit perfectly at the same time, but looking ahead without getting in the guidance for next year I feel good about where we're at and really good about where we're going to go.
Yes, I'll second that two I think obviously 2021 us comparator to 2022 as Florida as you know with the post Covid bolus and all sorts of activities and I do think that returning to normal assuming nothing else comes from a pandemic level, which certainly there we would want to expect 2023 to be.
Okay I appreciate that and then as I look at the enabling tech business over the last seven quarters that add up the revenue there versus the previous kind of 13 quarters and I get that there is some <unk> in there and everything but you've just done about the same amount of revenue.
These last seven versus the previous 13.
I'm just I'm wondering about are you approaching first of all and I'll give it a shot anyway I'm not sure if you'll answer this but around 300 or 300 Celsius systems out in the field and then.
Dan you've always talked about a lot of pull through revenue coming shouldnt, we get a huge chunk of pull through revenue in 'twenty, three and 24 from what we've seen over the last few years specifically.
So a couple of things that we will comment on the number of placements out there again I will leave you to your math and figure it out in that range and I think the pull through that we have seen with robots is one of the reasons why we grow above the market today. So so again unless we have other data I'm still going to call the spine market at roughly 3% growth.
It's possibly 4% and I think for us to outpace that by two to two and FX is a factor of us using that pull through as well as competitive conversions.
Perfect. Thank you.
Standby for our next question.
Our next question comes from David Saxon with Needham <unk> Company. David Go ahead with your question.
Yeah. Good afternoon, thanks for taking the questions.
I wanted to ask about the <unk> portfolio, maybe if you could just give an update on.
How that that product line is going.
Is it in a good position to be competitive when the robot does launch or is there still more wood to chop in terms of getting products to the market.
David Thanks for the question there is more work to do to get the products to market. While we have a strong primary cemented knee our ability to move into cement less knee as needed medial congruent type things are needed updating some of our revision systems just to be market appropriate theyre. All in play right now and need to be finished theyre not all needed for.
To make an impact.
Next year.
I think next year is really about us, finishing up filing and hopefully getting approval for the robot and with that starting the placements that allow that pull through but really seriously work to be done in all angles. That's one of the reasons also I refrain from talking a lot about it.
I think that will change as we kind of get into next year and get more traction.
Got it thanks, and then on the international business I didn't hear.
Hear you say anything about it.
Commercial team in Japan.
<unk> been a drag.
For a while now so maybe just give an update on how that market is doing and whether or not.
The team is kind of on.
On the right track now thanks, so much.
I appreciate it and good for you for calling it out you're right. It didn't leave it out just because I think they are on the stage of stabilizing like we would have thought as we exited Q3 I want to take my eyes on that I think there'll be fairly neutral in Q4, and I think it's going to be more of a 2023 story as we do that but the change wasn't meaningful enough in Q3 versus prior year for me to really.
Call anything out at that point, that's why it was removed from my comments.
Great. Thank you.
Okay.
Standby for our next question.
Next question comes from Caitlin Cronin of Canaccord Genuity Caitlin go ahead with your question.
Hi, This is actually Kyle on for Caitlin can you hear me all right.
We can hear you Kyle.
Everybody, so just a lot of them.
So I just wanted to get an updated thought on.
I appreciate the pipeline commentary about the going back to maybe a pre COVID-19 type pipeline on the capital side of things maybe.
Maybe just help us understand what youre seeing from.
Ordering demand when you think about going to new customers for <unk>.
Our multi system placement perspective.
<unk> and the robot and then I'll throw another one in there as well as just capital allocation updates here I mean, how do you see the market as it stands now.
How should we think about capital deployment on a go forward basis.
Alright.
I'll certainly take the first one.
We have certainly had several deals where both the <unk> GPS and <unk> have been placed out in Q hospitals or hospital systems, and we're pleased with that they're obviously meant to work seamlessly together and so it's nice to see that uptake occurring I wont necessarily reveal how much but I think in any given <unk>.
That's the goal of course it can also as a three D systems stand alone by itself and so right now we're.
Early on I cant say, there is a big trend with what we're doing but certainly multiple units had been placed along with robots to date.
With the capital allocation are you speaking about the hospitals in their plan or us as globus.
Just speaking on Globex, when you think about capital deployment with respect to the strength of the balance sheet and any potential M&A buybacks things of that sort.
I'll take that part of the question. Thanks for thanks for asking so capital allocation. The primary purpose still is to focus on acquisitions, whether it be a tuck ins or something slightly larger to complement our portfolio that is still the first and primary focus secondarily, obviously, we're going to continue to invest invest in our business, whether it be through R&D or growing out our supply.
Because we continue to grow our business so much and we drive a lot of vertical integration you could expect us to spend dollars there.
And thirdly on the share repurchases, we have roughly.
$150 million left on our remaining share purchase repurchase authorization, we did not revise anything during the quarter, but that's the order that I would put those in.
Yes.
Thank you very much.
<unk>.
Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
The conference will begin shortly to raise your hand during Q&A you can dial one one.
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Sure.
Sure.
Okay.
Okay.
Yes.
Okay.
Okay.
Great.
Okay.
Okay.
[music].
Yes.
Okay.
Yes.
Okay.
Thank you.
Yes.
Yes.
Okay.
Okay.
Thanks.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Hum.
Yes.
Okay.
Okay.
Yes.
Okay.
Sure.
Yes.
Okay.
Yes.
Okay.
Sure.
Okay.
Yes.
Yes.
Yes.
Okay.
Yes.
Okay.
<unk>.
Sure.
Okay.
Yes.
Sure.
Yes.
Okay.
Yes.
Okay.
Okay.
[music] space.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Sure.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Yes.
Sure.
Okay.
Yes.
Great.
Sure.
Yes.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Yes.
Yes.
Yes.
Sure.
Okay.
Yes.
Yes.
<unk>.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Yeah.
Yes.
Okay.
Sure.
Okay.
Okay.
Yes.
Yes.
Okay.