Q3 2022 Aziyo Biologics Inc Earnings Call
[music].
Good day, ladies and gentlemen, and thank you for standing by welcome to the <unk> Biologics third quarter 2022 earnings conference call. All lines have been placed on a listen only mode and the floor will be open for questions and comments. Following the presentation. If you should require assistance throughout the copper.
Please press star zero to reach a live operator, please be advised that today's conference is being recorded I would now like to hand, the conference call over to Matt Steinberg Finn partners, Sir the floor is yours.
Thank you operator, and thank you all for participating in today's call earlier today <unk> released financial results for the quarter ended September 32022, a copy of the press release is available on the company's website before we begin I'd like to remind you that management will make statements. During this call that include forward looking.
Statements within the meaning of federal Securities laws, which are pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 995.
Any statements contained in this call that do not relate to matters of historical fact relate to expectations or predictions of future events results or performance are forward looking statements.
All forward looking statements, including without limitation those relating to our operating trends and future financial performance are based upon our current estimates and various assumptions.
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements. Accordingly, you should not place undue reliance on these statements.
And description of the risks and uncertainties associated with our business. Please refer to the risk factors section of our of our public filings with the SEC, including <unk> Annual report on Form 10-K for the year ended December 31, 2021, and such factors may be updated from time to time and <unk> other filings.
With the SEC, including <unk> quarterly report on Form 10-Q for the quarterly period ended September 32022.
With the SEC accessible on the SEC's web site Www Dot SEC Dot Gov.
The conference call contains time sensitive information and is accurate only as of the live broadcast today November 14th 2022.
Youll biologics claims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise.
Also during this presentation, we refer to gross margin, excluding intangible asset amortization, which is a non-GAAP financial measure.
Reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure is available in the company's earnings release for the third fiscal quarter ended September 32022, which is accessible on the SEC's website and posted on the Investor page of <unk> website at Www Dot <unk> dot com and with that I will turn the.
Call over to <unk> CEO Randy Mills.
Thank you very much I am really excited to be with everyone. Today I've now completed my first 100 days or so as the new CEO . The CEO of course, while I'm new to the role of CEO I am not new to the company, having been a cofounder of the company.
The first 100 days, though.
Pleased and proud of the team for two things one is creating a clarity of vision, which I think is exceptional and unique.
Two is the execution of that vision by the team and so I'm going to talk about those two things in my remarks today.
Yeah.
So.
Yes.
Going back into my career as onetime CEO of Osiris Therapeutics for 10 years took the company public as the President and CEO of the California Institute of regenerative medicine, and a host of other positions.
Literally been.
The poster child of regenerative medicine, and so often we framed the argument as regenerative medicine versus medical devices and wouldn't you rather have a regenerative medicine solution in your body versus a foreign medical device, but the reality is.
Medical devices worked really really well.
This is data.
For pacemakers, but it holds true for any class II or class III medical device.
When you look at primary failures that is how often the device itself fails. It is very rare with pacemakers. It comes in at only one 3%.
But when you look at how well the device works for the patient it's a completely different story.
And so procedure failures that is how often the implantation in this case again of a pacemaker how often that procedure is successful 6% of the time those procedures will fail and so what's the difference what's going on here between.
Primary device failure, 0.13% and a procedure failure for 6%.
I thought this device host interface, where these failures are coming from and if you're a patient that's all that matters it doesn't matter, whether or not the device failed because of the device or whether or not it failed because you had an infection or a hematoma erosion or any number of.
Other device host complications that can arise.
Our bodies simply don't like foreign objects being implanted in them same thing would happen if you've got a splinter and your finger your body does what it can to either objected or wallet off and so that's as a company the field in which we're going after this concept of device compatibility and where we think.
We have the biggest opportunity for both topline and bottom line growth.
So.
Today, we have built the company around this premise at a zero we have four fully integrated business units all wrapped around a very sophisticated research developed and.
And then development and manufacturing team thats, producing about $50 million in revenue with a significant growth rate going on.
This is a commercial stage business with diversified portfolio of revenue and our late stage pipeline.
Hi, Matt and we think that represents a tremendous opportunity for future growth looking at what the company has accomplished this quarter I'm going to start off with what perhaps is the most important thing and that is I'm going to provide some comments regarding a meeting that we recently held with FDA on the path.
After clearance for Kangaroo, RM, which is our antibiotic eluting.
<unk> Dr. Williams, our Chief Scientific Officer has recently just joined the company and obviously I just joined the company.
Took over the responsibility for getting this product approved and wanted to hear directly from the food and drug administration, what on what items specifically were outstanding.
Before approval could be granted and so we recently held a meeting with FDA and we got very precise.
<unk> around what FDA wanted to see from us, which really all centered around.
A device stability protocol going forward, so for improving the expiration dating on the product more importantly, what the FDA didn't want was any additional data around product performance safety or efficacy or anything of the like and so we think we're in very good.
Good shape right now we have a very clear.
Pass, we know what FDA wants and we think we're in a good position not to provide that information to FDA in time for a first quarter clearance of this product and so we're super excited about that.
And that.
We've got a team that's executing so strong growth with net sales of $12 4 million, which is the overall, 8% increase but when you look at our high growth segments of our business, which is our simpler Durham and our Kangaroo They had their highest quarter in company history with 18% year over year growth, which we think is further.
Elevating this this strategy that device compatibility is actually a really significant unmet medical need going forward.
We added former Shire head of business development, David Colman to our board of Directors Importantly, Dave.
David has got a lot of strategic transaction experience as obviously as the head of business development for Shire and Thats important for us as we continue to contemplate certain partnerships and transactions moving forward.
Lastly, the Companys raised the lower end of guidance from $47 million to $50 million tightened that a little bit up to $48 million to $50 million and so this has really been a great story of execution in this quarter, Matt is going to go into it more but it's not just at the top line, we see control of operating.
We see significant improvements in lowering cost of goods and improving gross margin and we think on these fronts, we really just begun.
Just to familiarize you with our four different business units really the first time, we've talked about the company in this respect of four different business units. The first off that we have is our womens health business unit here again, we don't make the primary medical device, we make the device that makes the breast implant hot.
And so these are primarily used in procedures, where women had a woman has.
<unk> received a diagnosis of some type of breast cancer had a therapeutic Ms sector me as a result, and then needs to have the breast reconstructed and the product we make simpler derm.
Is used to contain the expander after it's been put in place as part of that reconstruction procedure, what do we like about this market. We'll one we have a great product.
Second our centers around the market dynamics and the opportunity that exists here the market leader in this space was recently acquired by a very large traditional pharmaceutical company and they have stopped paying sales commissions on acellular dermis and that has created a pretty significant void.
In the market as you can imagine and so our strategy here is really straightforward, we are running after and capturing market share in that market space by increasing the number of independent reps that we have and also by the distributors that we are working with to speed our penetration in.
This market. We also have significant efforts going on here to lower our cost of goods with certain process improvements that we've put in place going forward. So we're very excited and very well positioned in the women's health market.
The next up is cardiac device protection, here's where we have our marquee Kangaroo Fran.
Franchise. This is a pouch that goes around pacemakers, an electronic distributor leaders it's.
It's about a $600 million market opportunity for US again, though we really like the market dynamics here. So there's really four major players in the pacemaker market in the United States. The market leader here has established the need for an envelope.
Because they have one we happen to have the only other envelope on the market and so we really like where that positions us zero and the Kangaroo franchise. Our strategy here also very straightforward.
Yet Kangaroo RM approved and launch that product, it's an antibiotic eluting version of the Kangaroo.
<unk>.
Which will prevent bacterial colonization and further infection post operatively, we think once we have that.
Clearance in place we are in a prime position for a partnership a major global partnership.
For this product in the pacemaker and Cie space from there we're going to launch.
Products into the sleep apnea, and neuro stem space, So we see tremendous growth opportunity in up front.
Opportunity with our cardiac cardiac device protection business.
Turning to cardiovascular this is where we've leveraged so the same actual material and technology that we use in our Kangaroo business, which is this <unk> derived extra cellular matrix. Our ECM also has tremendous value in the cardiovascular space and so here. These these products.
<unk> and vascular and tight are used to close open cardiac procedures. So to close the pericardium following open heart surgery or to close a major vessel following our procedures such as in endarterectomy, where you're opening the carotid femoral artery and then often used in children undergoing.
<unk>.
<unk>.
And the child.
This is a great business for us it's more of a mature business. So it's not a real topline growing business, but it has very nice gross margins and contribute significantly to the company.
And then lastly round this out by talking about our ortho biologics business. This was a little different in how we approach the sale. So unlike the others. This is more of a <unk> play.
And what we do here, we literally created this space of ortho biologics and what we do here is we're able to go to other orthopedic or spine companies, who perhaps don't have the same level of sophistication with biologics as we do and we're able to provide them a turnkey solution.
<unk> do not just develop them or prior to a proprietary product, but also to manufacture and supply of that product going forward.
As a relatively unencumbered space for us and so here, we see pretty reasonable top line growth, but we see fantastic growth at the bottom line. In fact, we're targeting a two X growth in operating income from this unit in 2023, largely driven by process improvements.
Aimed at lowering our cost of goods. So that's just to give you an idea of our of our current business, Matt is going to provide some <unk>.
Around our financial update Matt Ferguson, Okay. Thanks, Randy.
From a financial perspective.
In addition to what Randy talked about from a revenue perspective with the topline growth that we saw we also saw a good performance in terms of gross margins were on a GAAP basis, we turned in.
41% gross margin that's up 11 nine points from the previous year in Q3, when it was 32% and then on a non-GAAP basis, which is probably more indicative of the real operating performance.
We're at 48% and that really relates to process improvements that we're making in <unk> been making and we will continue to make as well as better inventory management and Thats up about eight points from the prior year.
From an opportunity operating expense point of view, we were at $12 8 million for the quarter.
That's up about $2 1 million from the prior year.
Our third quarter.
That includes a couple of items that we.
Were somewhat anomalous we had the CEO transition and there was about 800000 of expense related to that process that we went through that was was taken in the third quarter.
And then importantly, we had about $1 million and half of expense related to fiber cell litigation and for those of you who have been following the company. You know we had a recall of a single donor lot of <unk>.
Fiber to cell product back in the second quarter of 2021, and we've had quite a few lawsuits that resulted from that.
But we are now at the point, where we have actually settled a pretty large number of those we settled about 24 of those.
Claims and lawsuits just recently and that has given us enough information to for the first time estimate the overall liability associated with that pool of litigation and we've done that in the current quarter and we have also recognized the corresponding receivables associated with the insurance that we have that covers us for.
And so the net difference between the overall liability and the insurance receivables that we've recognized is about $1 $5 million, which includes the expense that we took during the quarter and we still have the opportunity actually to go after additional recovery in terms of.
Receivables in insurance coverage there. So we actually are quite pleased with the situation. There. It's good to get this very much behind us.
And we will continue to work to set an additional cases.
But we now have a clear picture in terms of what the overall cost wise and we really feel quite confident that we can manage that effectively going forward.
Just the only other point I will touch on from a list here, we ended the quarter with $8 1 million in cash and then.
We did increase the bottom end of our revenue guidance range for the full year.
The new guidance range of $48 million to $50 million that compares favorably to the $47 million to $50 million range, which we set at the beginning of 2022.
And with that I will hand, it back to Randy before we take questions.
Great. Thank you Matt I'll.
I'll just finish up <unk>.
Trying to provide some clarity around our priorities and potential catalysts moving forward I like clarity.
And so does the organization so.
First and foremost is kangaroo RM clearance from the FDA. Our teams are working as I said, we held a very positive meeting with the FDA. We think we have the clarity we need to provide FDA.
With the information they have requested.
And if all goes well, we would expect clearance of this product in the first quarter coming up second is we are evaluating a number of global partnership opportunities for our Kangaroo pacemaker franchise. The purpose here is to accelerate the growth of this of this franchise.
And the pacemaker market globally and in the cost.
Conscious manner.
Third is improving our cash flow out of our ortho biologics business unit as mentioned, we think we have the opportunity to double our operating income out of this business unit, we have already implemented certain process improvements that have resulted in significant improvements in gross margin, we think thats just the.
Beginning so we're working on that one.
Fourth is expand our commercial footprint to capture a simpler market share from the market leader, we have a great product the surgeons love our product.
We think that the market leader has taken their eye off the ball and that provides us a unique a unique opportunity to go after it and so we're doing that both with independent reps as well as selective distributor ships that were adding.
Fifth.
Is build out the rest of our device compatibility platform our kangaroo in the like in the sleep apnea space Neuro Stimulator, and then ultimately leveraging our Kangaroo RM technology into our simpler and franchise, where post operative infection is actually a bigger problem.
Around 9% to 11% and then lastly.
Contemplating a number of different strategic transactions in partnerships. So we've received.
Interest for partnerships or other types of transactions across all four of our business units.
We think through these partnerships, we have the opportunity to add cash shareholder value.
And to add significant product growth in the near term as well as the long term. However, I want to be really clear here, we will be very selective about any transaction that we consider executing.
And so I hope that provides you with a good sense of what this company has done during the third quarter and what it is that we are aiming to do going forward. Both from a strategy standpoint, as well as from a very specific priority standpoint, I want to end by thanking.
Our employees the team of the CEO has been fantastic welcoming me into the team and the first 100 days and for just keeping their eye on the ball and executing beautifully for this period team. Thank you. So much your efforts are very sincerely appreciate it so with that.
I will conclude my comments and turn it over to the call turn the call over to the operator for questions.
Thank you ladies and gentlemen, the floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time, if youre using a speakerphone, we ask them all posing your question you just pick up your handset to provide favorable style quality once again, ladies and gentlemen, if you do have a question or comment Please press star one.
One on your telephone keypad at this time, please hold as we poll for questions.
And we will take our first question from Josh Jennings from Cowen. Please go ahead Josh.
Hi, good evening, Thanks, a lot for taking my questions and I appreciate it.
The thorough updates.
I wanted to just ask two questions one.
Just on the.
The.
Device compatibility portfolio and clinical data accrual.
Any datasets that we should have on our radar in the next 12 months or so.
So.
Enhance the marketing of <unk>.
Apparently kangaroo clearly kangaroo Artemis who's going to be approval is going to be.
A big deal for that franchise.
But I just wanted to think about any clinical datasets that are on the comm and then and then lastly, just in terms of building out the device compatibility portfolio sleep apnea Stanley others disciplinary Martin any test initial steps.
Any kind of I guess guide closest in terms of.
Yes.
Element of requirements or the burden that you see for your development team.
I mean, it seems like there could be shreveport toward pathways for each of the categories you laid out, but just wanted to get a better sense of what those.
The development trajectory could look like thanks.
Okay.
Okay. That's.
Thank you so I tried to categorize the two questions first is.
Capturing clinical data around our device compatibility business, we actually have two different studies going on in device compatibility.
Our.
New Chief Scientific Officer, Dr. Michelle Williams has come in.
And is.
Now overseeing those programs and medical affairs I am not sure exactly on the timing for when we're going to be releasing <unk>.
Later on that but.
I know both of those trials once completed will be will be something that is suitable for publication in a high quality journal and I will get back to you more specifically with expectation timing around that I certainly do appreciate the question.
The second is building.
Building up and building out the device compatibility franchise here, what we're what we're looking at doing.
Once we've really taken care of we think the pacemaker indications here and probably with a pretty significant global partnership our next stop is.
Taking the product and the franchise into the neuro stem business and the reason for that centers around we currently actually have approval.
For that space as well as for the implantable defibrillator.
Space and so those two would be the next logical stop for us right behind that though is sleep apnea.
And so we were recently just at the.
Sleep app or I'm, sorry, the anti conference in Philadelphia.
<unk> had.
Great meetings, there around the clinical need which we think in this indication is quite.
It's quite significant and so we really like the sleep apnea space, particularly and we're talking about implantable.
Stimulators in the sleep apnea space, obviously, but particularly for device differentiation in our market there.
They're just getting into the meaty part of this market being able to partner and create significant separation from the others. We think is a real opportunity lastly.
<unk>.
You bet.
We mentioned and you as well this concept of.
Of expanding our RM platform and our RM technology into other products and for US a very obvious and real one is in our simpler term franchise.
We're looking at in the rest of the rest of the World is looking at post operative infection rates in the 9% to 11% range, which is just holding on.
<unk>.
Totally unacceptable.
We've been active out in the plastic surgeon reconstructive breast surgery community.
Talking and doing surveys and the like and we've found about an 80%.
Strong interest or demand in a surgeon of simpler derm combined with our Kangaroo RM technology. We think the work we've done with RM on the Kangaroos side lends itself to moving into that franchise more easily with that said this.
From a regulatory standpoint is through a PMA process, but it would not be through the <unk>.
Generic <unk>.
Breast reconstruction pathway, it would be specifically around an indication for prevention of infection.
So I hope that provided you some color around those two questions.
Absolutely. Thanks, so much.
Thank you and we will take our next question from Matthew O'brien from Piper Sandler. Please go ahead Matthew.
Hi, This is Jim Ryan on for Matt. Thank you for taking the question.
So maybe just starting off on Kangaroo are and it sounds like we can expect.
To be commercial by the end of Q1 next year. So I guess any additional color on the launch strategy.
How should we think about initial commercial revenues.
Really.
And really will be.
Largely predicated on any particular transaction.
That we would consummate in the pacemaker space.
We currently have.
Our sales organization in this space doing a really good job, but we think the opportunity exists for this product to really explode onto the market. If our sales agents are put in the position.
Of of detailing the device more as a medical science liaison.
And having the actual individual cases.
Covered by a.
Major device company with a pacemaker, where they would already be already be on the case and so at this point.
It would be probably <unk>.
Premature.
To detail more specifics about the launch other than we would expect that launch to be done.
In coordination with our major device company and therefore, we would expect uptake to be.
To be pretty significant if not transformational for the organization.
Okay. Okay that makes sense I guess, just a quick follow up there is it safe to assume that.
We want the launch of this product until.
The.
Execution of an additional commercial partnership or do you think you can leverage your existing commercial partners to kind of.
Get this project going.
After after approval.
Sure well, we have a great commercial partner right now in Boston scientific.
For our current Kangaroo products and we work with.
We worked with Boston scientific everyday on the distribution of the non antibiotic version.
This product under that relationship there is tremendous opportunity for us to improve the mechanics.
Sure.
Of our of our working relationship which would make.
The sale and distribution.
Of products into particularly into the U S much much easier and much more competitive with other products, which might enjoy.
A more of a bundling strategy.
And so I would say right now we have we have the ability to launch the product on our own but I would I would expect that we would be.
More likely than not.
Two.
Have a more robust.
Partnership in place prior to the launch of Kangaroo RF.
Okay very helpful and if I could just squeeze one.
A quick one in here on the guidance.
So I think by my math the.
The guidance range that was raised on the low end implies that.
<unk> step up of about 8% at the midpoint.
So firstly is that bump is solely due to.
Yes.
Performance in the OEM business or it's something else, helping there.
And how are you thinking about contributions from.
Simpler German and Kangaroo.
In the quarter.
Yes, Simeon this is Matt I can speak to that.
It really it has to do with with being three quarters of the way through the year end and having performed well during the year to date period end.
Having a good sense of where we'll be by by year end. The contributors so far really have been.
Pretty much across the board, but we've called out both this quarter and last quarter that that the fastest growing areas were.
Kangaroo in a simple derm product lines and.
So they are driving the growth on a year over year basis and.
On a sequential basis, and we would expect that probably will be the driver going forward into Q4 and beyond that level as well. We've also seen good results and as you said the OEM business.
The ortho biologics business.
Sure.
And that will be a contributor too, but we really do see.
The device compatibility areas that if kangaroo in simple theyre being the real drivers of growth.
Going forward.
Okay. Okay perfect. Thank you guys.
Thank you. Thank you.
Reminder, that star one if you do have a question or comment.
We will take our next question from David Ross Scott from Truest Securities. Please go ahead David.
Hey, guys. Thanks for taking the question I just wanted to first start on the.
The updated timing for the CAGR relaunch I guess can you just provide some more information around.
What led to the updated timing there.
Guess, what the specific steps that you are undertaking to.
Get that out by Q1.
What the visibility into the approval timing is from an FDA standpoint.
Sure David I'll do.
I'll do my best to fulfill this thing with as much background as I as I can.
I participated first of all I participated in this call.
Personally myself because I wanted.
To be able to hear firsthand.
We were going I do need to provide some background on why.
I did that and it's not because they don't have a trust or confidence.
And the team.
Earlier this year I had brought in Dr. Michelle Williams as our Chief Scientific Officer.
And she took over running not only product development R&D, but regulatory.
And medical affairs, as well and has an outstanding background I've worked with her for the last 18 years.
What probably is not known.
Is that our.
Head of product development at that time, and the one that had prepared.
The submission unexpectedly died.
And.
It it didn't leave US uncovered he had built a great team and the addition of Michelle was obviously.
Very fortunate and timing, but it did leave us with.
A.
Direct firsthand knowledge and understanding.
Of the approval process and what was going on there and so because of that.
We wanted to make sure we were providing FDA exactly what they wanted what we didn't want to do David was we didn't want to provide them information without really knowing specifically their needs.
And and.
No. Good reason end up with an NSA.
Because we think the product obviously has merits that warrant it.
It's clearance and so Thats why we held the meeting that's one of the reasons that we ended up.
This GAAP because we actually paused the submission of materials until we until we held this meeting.
As I said in the call.
Really the only outstanding items that we talked about with FDA and not only did we have specific questions. But we also asked them very open ended Lee is there anything else.
That we're missing here.
They responded that there was not really the questions centered around.
Stability studies moving forward.
For the.
Extension of product life X Ray and basically the shelf shelf life of the product because this is a product that has both a drug and a device component it is being run.
<unk> between the center for the device.
The center for drugs.
And that sometimes can can create some confusion between the two members of the agency and so we were very gratified to find out that really what their answers are what their questions where that we actually had answers for the vast majority of them.
More importantly, we didn't have to generate.
The new safety or efficacy.
Data on.
On the product with regards to the timeline moving forward as I said, we're finishing up our response.
To them.
And we think we will be able to get that in.
As I said, enabling them.
Sufficient amount of time to be able to give us a decision and hopefully a clearance in the first quarter.
Okay.
And then maybe.
One for Matt just.
With this the litigation I guess on fiber cell in the P&L I guess theres, a couple of kind of clarification questions.
Is that something that is recurring on a quarterly basis or is that just limited to Q3 and then.
There are some moving pieces around kind of just the recent raise some of the.
Some of the.
Our liabilities and receivables that are recorded on the balance sheet just around this so just wondering what.
What we should be thinking about from like a true kind of capital position and how youre thinking about that position as well as the investment priorities going forward I think just in the <unk>.
The balance sheet, there is about 8 million or so left in cash I'm, just trying to understand what that true kind of balance sheet position is from a cash perspective. Thank you.
Sure David So on the.
Fiber selling litigation categories.
It is a little bit of a complex area, but it's something that we've been working really hard on over the course of the last year plus.
We have known that there was some level of exposure there, but it was really hard to quantify it until we actually got.
Face to face with.
With plaintiffs and their counsel and really understood what the details of the various claims.
And so we've now have done that in a large number of the cases and Thats what has allowed us it's given us a lot of detailed information.
And some actual precedent in terms of the.
The cases, having been settled and so we have the the liability on our balance sheet, which is about $17 5 million $17 6 million I think it's a total estimate of the liability.
And then we have insurance proceeds that basically cover that.
Some potential to recover even more from insurance for the small delta between those two.
So that those estimates, particularly the estimate of the liability is something that we will adjust as we continue to get more information. So for instance, as we continue to to settle more cases and.
Yeah.
And as time goes by and we have more information.
And.
But right now what we have is based on.
Lot of good data and we think it's a good estimate so.
Hopefully that helps there in terms of understanding what it is so I definitely back to your original question I would not see that as something that is a recurring expense the amount that we showed in Q3, there could be some adjustments of the of the estimates on the balance sheet from time to time, but by and large we really feel like those are covered by insurance.
Half.
So.
That was the I think that was the main question is just in terms of the overall balance sheet.
<unk>.
The cash on hand, and we feel like we're in a good position between the various potential sources of cash that we have going forward whether it's.
From the.
The credit facilities that we have in place or.
Support for our current shareholders or the strategic transactions that we have alluded to and that we are working on very hard and feel that could actually be very impactful in terms of contributions too.
Cash on our balance sheet.
Okay, great. Thank you.
Thank you and that was our last question, ladies and gentlemen. This does conclude today's teleconference. We thank you for your participation you may disconnect. Your lines at this time and have a great day.
Yeah.
Hum.
Okay.