Q2 2023 Aspen Group Inc Earnings Call
Speaker 2: and the anticipated results and benefits of these efforts.
Speaker 3: Our plan is to subsequently increase marketing spend rate and the impact that it's expected to have on in timing of achieving our year over year enrollment growth.
Speaker 4: our plan to maintain and approximately break even adjusted EBITDA, the continued strong demand for the MSN FNP program, our search for candidates for a potential AR facility, and the intended use of proceeds from any loan transaction that may result.
Speaker 5: anticipated future revenue from the teach-out of our pre-licensure campuses, our future growth and growth strategy, our fiscal 2023 guidance, and our liquidity.
Speaker 6: Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.
Speaker 7: A discussion of risks and uncertainties related to Aspen Group's business is contained in its filings.
Speaker 8: with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended April 30, 2022, and then the earnings release issued this afternoon.
Speaker 9: ASPEN Group disclaims any obligation to update any forward-looking statement as a result of future developments.
Speaker 10: you that during this conference call the company will discuss EBITDA and adjusted EBITDA which are non-GAAP financial measures in talking about the company's performance.
Speaker 11: Reconciliations to the most directly comparable GAAP financial measures are provided in the tables in the earnings release issued by the company today.
Speaker 12: Please note that the earnings release is available on Aspen Group's website, aspu.com, on the IR calendar page under News and Events.
Speaker 13: A transcript of this conference call will be available for one year on the company's website. Please note that the earnings slides are available on Ask from Group's website, ASPU.com, on the presentations page under company info.
Speaker 14: Now, I will turn the call over to Michael Matthews, Aspen Group's Chairman and Chief Executive Officer. Michael Matthews, Aspen Group's Chairman and Chief Executive Officer.
Speaker 15: Good afternoon and thank you for joining our call today. We are encouraged by our second quarter results, which reflect the impact of the actions we have taken to reduce marketing and general and administrative spend as part of the restructuring initiative that we launched in the prior quarter.
Speaker 16: Gross margin improved by 900 basis points on lower revenue, and we narrowed our net loss and delivered positive adjusted EBITDA.
Speaker 17: USU's revenue grew 9% on continued strong demand for the MSN FNP program as that program continues to account for 83% of USU's total student body.
Speaker 18: This growth helped to offset the expected decline in AU revenue, coming primarily from the combined effects of the teachout of our BSN prelicensure program and significantly lower marketing spend.
Speaker 19: We set out to right-size the company with the restructuring initiated in the first quarter of fiscal year 2023, and our efforts are delivering results.
Speaker 20: The savings from the restructuring plan drove a year-over-year increase of approximately half a million in gross profit.
Speaker 21: which flowed through the P&L and reduced cashews and operations in the quarter by 2 million compared to a year ago quarter, allowing us to improve adjusted EBITDA to a half a million dollars versus negative 0.7 million last year's second quarter.
Speaker 22: For the quarter, cash flow from operations was positive $1 million.
Speaker 23: We ended the quarter with unrestricted cash of $2.3 million on par with the cash balance at the end of last quarter.
Speaker 24: Stabilizing our cash balance is a priority and we are rigorously managing the company to achieve that.
Speaker 25: One last item related to our cash balance.
Speaker 26: As I discussed last quarter, we engaged Lampert Capital Advisors to assist with securing an accounts receivable financing agreement.
Speaker 27: Lampert conducted due diligence on our accounts receivable, which they recently completed.
Speaker 28: Subsequently, they began an outreach program to prospective lenders, and we are in the process of identifying potential candidates.
Speaker 29: Switching now to our operational metrics for Q2.
Speaker 30: There have been several events in the past calendar year that impacted our enrollment patterns.
Speaker 31: some due to external factors like increased workloads for nurses.
Speaker 32: The two primary events were the enrollment stoppage following the announcement of the teachout of our pre-licensure program and the significant reduction in our marketing spend levels following the posting last April of an 18.3 million surety bond with the Arizona State Board for private postsecondary education.
On October 31, however, we signed an updated stipulated agreement with the Arizona State Board for Private Postsecondary Education, which reduced the surety bond from $18.3 million to $5.5 million.
This has resulted in the insurance company recently agreeing to return $1.5 million of cash that was previously being held as collateral for the larger bond.
providing the company with additional cash for operations.
As a result of the two events just discussed...
In Q2 of FY2023, our marketing spend was down by $3.1 million over the prior year quarter and $3.7 million sequentially.
Consequently, new student enrollments decreased 46% year over year.
The downward trend in enrollments has reduced AGI's active student body by 23% year-over-year, mostly due to AU's total active student body decrease of 29%.
USU's total active student body decreased by 5% on a year-over-year basis.
Nursing students continue to comprise 86% of AGI's total active students at the end of Q2 fiscal 2023.
Of the students seeking advanced nursing degrees, 8,269 are RNs, including 5,517 at Aspen University, and 2,752 are RNs.
in USU.
In contrast, the remaining 1123 nursing students at Quarter End were enrolled in Aspen University's BSN prelicensure program in the Phoenix, Austin, Tampa, Nashville, and Atlanta metros.
In terms of our future growth plans, with the pending release of the $1.5 million from the insurance company, and our expectation that we close an AR facility during Q4 of fiscal 2023, we intend to return to a marketing spend rate in our fiscal fourth quarter.
that is anticipated to resume year-over-year enrollment growth by the second half of our upcoming fiscal year 2024.
As we have communicated over the last few quarters, we have revised our business plan to refocus on our traditional post-licensure nursing education business.
designed to methodically replace the anticipated loss pre-licensure revenue that winds down at the end of fiscal 2024.
Our near-term objectives are twofold.
First, we intend to secure an AR facility that will allow us to spend on an annualized basis between $7 million to $9 million on new marketing campaigns that will drive enrollment growth in our USUFNP and Aspen online nursing programs primarily.
Second, we plan to manage the company with steadfast commitment to maintain an adjusted EBITDA level and to break even to slightly negative range.
Given our long history of driving post-licensure nursing enrollments and highly efficient online marketing initiatives…
Our entire management team is confident we can meet our near-term and medium-term goals.
I will now hand the call over to Matt to cover the details of our second quarter financial results.
Please go ahead, Matt.
Thank you, Mike, and good afternoon, everyone. In my comments on the quarterly results, I will refer to the second quarter that ended on October 31, 2022.
Unless otherwise stated, all comparisons are to the prior year's second quarter ended October 31, 2021.
I will begin with a review of our financial results for the 2023 fiscal second quarter, including some detailed commentary on P&L items and additional commentary on the restructuring program initiated late in Q1.
I'll then conclude with comments on our balance sheet and cash flow.
Before I jump into the details, I want to call out three unique elements in this quarter to provide context to the details I will cover.
First, as expected, we saw a sequential decrease in our active student body, which is consistent with the marketing spend reduction begun in fiscal Q4 2022 and the stoppage of enrollment in all of our pre-licensure campus locations.
This resulted in a quarterly sequential decline in revenue in both our Aspen University online and prelicensure programs.
Our active student body decreased from 12,048 in Q1, 2023 to 10,957 in Q2, 2023.
Second, as part of the restructuring announced on last quarter's earnings call, we significantly reduced marketing spend in Q2, which positively impacted our gross margin and adjusted EBITDA. Marketing spend was reduced to $825,000 in the second quarter of fiscal 2023, and the
compared to 4 million in the year ago quarter and 4.5 million in the sequential prior quarter.
Third, continued cost controls and the restructuring further reduced ongoing GNA costs versus the prior year's second quarter and the sequential prior quarter.
Now, on to the details.
Total revenue was $17.1 million versus $18.9 million in the year ago quarter, or a decrease of 10%.
This decrease is attributed to the decrease in marketing spend that was initiated two quarters ago in Q4 fiscal 2022 and the halt to enrollments at our pre-licensure locations.
Gross profit and gross margin increased to 10.2 million and 60% respectively, versus 9.7 million and 51% respectively for the year-ago quarter.
The year-over-year gross margin improvement is primarily a function of lower marketing spend, as I discussed in my opening remarks.
Instructional costs for the quarter were $5.5 million, or 32% of revenue, up from $4.8 million, or 26% of revenue, in the year-ago quarter.
Our core student population is increasing due to the progression of pre-licensure double cohorts in our Phoenix locations and the entry of pre-licensure students into the core curriculum in our newer locations.
This in turn increases instructional costs as a percentage of revenue due to the requirement of a higher ratio of instructors to students during the core curriculum portion of the prelicensure program.
Additionally, higher USU clinical immersion-related instructional costs were incurred in the quarter due to the growth in the MSN FNP program.
Total marketing and promotional costs for the second quarter were $825,000, or 5% of revenue, down from $4 million, or 21% of revenue.
The decrease in marketing as a percentage of revenue results from the planned decrease in marketing spend across all programs.
The quarter's general and administrative costs were $10.9 million or 64% of revenue compared to $11.6 million or 61% of total revenue.
The year-over-year decrease in GNA spend is due to both the impact of the restructuring and cost controls designed to reduce GNA spend across all functions, primarily corporate AGI.
Total net loss was $2.3 million, or $0.09 per basic and deleted share, compared to a net loss of $2.9 million, or $0.11 per basic and deleted share.
from a unit perspective.
Aspen University's net income for the quarter was $1.1 million compared to $1.3 million.
USU's net income was $1.8 million versus $877,000.
Finally, AGI incurred a net loss of $5.2 million compared to a net loss of $5.1 million.
Included in the AGI net loss is interest expense of $700,000 compared to $100,000.
The Q2 interest expense includes a 1% commitment fee of $200,000 on the undrawn 2022 revolving credit facility, which will not repeat in subsequent quarters.
Consolidated EBITDA for the quarter was a loss of $603,000.
compared to an EBITDA loss of 1.9 million in the prior year period.
Again, reduced marketing spend and cost control measures in GNA drove the improvement in EBITDA.
Second quarter EBITDA compared to the prior year quarter for each of the three units was as follows. Aspen University generated 1.9 million compared to 2 million.
USU generated 1.9 million compared to 976,000.
AGI had an EBITDA loss of 4.4 million compared to a loss of 4.9 million.
The increase in USU EBITDA is mostly attributed to the increased revenue in the unit's FNP post-licensure degree program, which has the highest concentration of students and the highest LTV.
Consolidated adjusted EBITDA was 537,000 compared to a loss of 715,000.
from a unit perspective.
Aspen University generated adjusted EBITDA of 2.1 million compared to 2.3 million and adjusted EBITDA margin was 20% as compared to 18%.
USU generated adjusted EBITDA of 2.1 million compared to 1.1 million and adjusted EBITDA margin improved significantly to 32% compared to 18%.
Finally, AGI corporate incurred an adjusted EBITDA loss of $3.7 million compared to a loss of $4.1 million.
As Mike mentioned, we implemented a restructuring plan late in the first quarter of fiscal 2023, which has already resulted in significant cash benefits for the company.
These benefits are apparent in the second quarter results, and we expect additional benefits for the remainder of the fiscal year.
There are two key components of the plan.
First, we scaled back marketing ad spend to maintenance spend levels of $150,000 per quarter, which resulted in savings of $3.7 million in Q2 vs Q1.
and should deliver savings of $3.8 million in Q3.
The Q3 savings estimate is based on a normalized marketing ad spend run rate of about $4 million per quarter.
Second, the restructuring included the elimination of approximately 70 positions, mostly within our GMA functions at Aspen University and AGI.
As a result, additional restructuring savings of $600,000 were realized in Q2 and $1 million of additional savings are expected in Q3.
The Q2 GNA savings were $150,000 less than we initially expected, primarily due to the timing of eliminating positions, which does not impact our forecasted future savings.
Total spend reductions were $4.5 million in Q2 and are expected to be $4.9 million in Q3.
In summary, these significant spending reductions positioned the company to generate positive cash flow from operations beginning in the second quarter.
Moving to the balance sheet, as of October 31, 2022, our unrestricted cash and cash equivalents were $2.3 million and restricted cash was $6.4 million.
As of April 30, 2022, our unrestricted cash and cash equivalents were $6.5 million and restricted cash was $6.4 million.
Cash used in operations for the first six months of fiscal 2023 was $2.6 million. For me, though, cash generated from operations for the second quarter was a positive $1 million.
The shift from operating cash flows using cash of $3.6 million in the fiscal first quarter to being a source of cash in the second fiscal quarter was the result of lower discretionary spending on marketing and the benefits of our restructuring plan.
which narrowed our net loss.
Our second quarter cash generated from operations also includes $418,000 of tenant improvement reimbursement.
A cash flow positive change in working capital also played a role.
The positive working capital impact was expected as decreased marketing spend reduced enrollments which then decreased capital needed to finance growth in student receivables.
We also had capex spend during the first six months of $842,000.
Without the continued investment in pre-licensure campus locations, our CAPEX spend going forward should approximate $300,000 to $400,000 on a quarterly basis.
As Mike previously mentioned, subsequent to the end of Q2, $1.5 million of restricted cash associated with the surety bond will become unrestricted, providing additional cash for operations.
Additionally, the insurance company agreed to terminate the draw restriction on the 2022 revolving credit facility agreements.
When the AR facility closes, it will become senior secured, and at that point we will terminate the 2022 revolving credit facility agreement.
With respect to our share count, the weighted average number of common basic shares outstanding at the end of the quarter was 25,282,947 vs. 24,957,046.
We are not providing guidance at this time. We plan to update our business plan when we close and execute an AR financing agreement.
The objective of the AR facility and the related business plan will be to resume marketing stand at a level which allows us to offset the decline in the pre-licensure student body with a growing post-licensure online student body while at the same time achieving operating results of approximately break-even to slightly negative.
adjusted EBITDA. That concludes our prepared remarks. I will now turn the call back to the operator for questions.
Operator, please open the call for Q&A.
At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. You may press star one on your telephone keypad.
It may be necessary to pick up your handset before pressing the star key. One moment please while we go for questions.
Our first question comes from the line of Eric Martinuzzi with Lake Street. Please proceed with your question.
I wanted to dive into the marketing spend just to get a feel for that. It sounds like it is all kind of contingent on the AR financing, but just to get the quarters correct here. It is one try for ranges and you can see why it is putting our Glory Hospitalech here in
was $4.5 million in marketing spend. Q2, it dropped down to $825,000. And then your plan for Q3, could you tell me that again?
Good afternoon Eric, it's Mike. Our plan in 2-3, because we're looking to close the air facility, round about at the end of the third quarter, which is the end of January . So this full quarter is kind of a maintenance spend, so it will be sub a half a million dollar spend rate this quarter.
Okay. And then the I know we are pulling back across the board here but we had growth in REVs at the USU segment level but our student body actually declined. Can you help me understand that?
You know the revenue for USU even though there's a very very small modest decline of student body year over year
Okay, and then what's the expectation is that that does USU student body continue to decline as we.
as the marketing spend is reduced here this quarter.
Yeah, I think one of the pieces of great news that I would love our analysts and our great shareholders to take away today is that even though we dropped our spend rate, you know, quite significantly in the second quarter and as well in the third quarter, you know, I've mentioned historically that we have such strong brands and we've been spending so much.
have not declined as much as one might forecast or expect.
So, you know, we're hanging in there quite well even though our spend rate went down to a maintenance level. So, hopefully, folks are, you know, impressed by the results of the enrollments even though, again, where there's not a significant spend rate.
I know you are not giving specific guidance for the third quarter, but seasonally it is a softer quarter with the holidays. Do you anticipate any Dis reactions or surprises like Rodrigo?
Any change in that trend, in other words, the January quarter down sequentially from the October quarter?
Yeah, this is Matt. I'll take that. So, from a revenue standpoint, you can expect to see our results.
We declined modestly from Q2 into Q3 because of the fact that there is a seasonal weakness and the other fact is we're continuing to teach out the pre-licensure program. So the effects of both of those will put some pressure downward on revenue. As a result, from a bottom line standpoint, we're going to have to look at the overall
We will still hover around that break-even adjusted EBITDA, but we will probably dip slightly negative for the next quarter. We will still realize all of the savings that we put in place from the restructuring, so we will have another solid quarter when it comes to G&A savings and the marketing savings, but it is the revenue decline that will mostly impact the bottom line. Okay. And then last question for me. What is it that's...
of and so we got a couple of term sheets that we didn't like so we declined and we made the decision to hire a banker that specifically focuses only on helping companies find debt solutions.
which is Lampert Capital. So we're making great progress and again we have every expectation that we'll close it in the next couple months.
Okay, well, thanks for taking my questions and good luck. Thank you.
Our next question comes from the line of Raj Sharma with B Riley. Please proceed with your question.
Thank you for taking my questions. Good results. I wanted to follow up.
all the
AR financing it seems like the marketing
You've said marketing is in maintenance mode, but I think you also just said that you're waiting for...
you're waiting for the air financing to ramp the marketing spend back up.
so that you can get
year on year improvements in the starts, can you kind of give us an indication of what that level would be and you know.
Are you going to take it right back up to, you know?
four and a half million or half of that? And what does growth mean? 5% starts with growth. You're aiming for kind of.
just a little bit because it seems to be dependent upon your marketing budget seems to be dependent significantly dependent on your financing
More color on that wood, right?
Yeah, good afternoon Raj, it's Mike. Our plan right now is for the upcoming fiscal year starting May 1st.
What we'd like to do, and Matt kind of mentioned this in his comments, we'd like to implement a business plan that we maintain a kind of a break even, adjusted EBITDA type of a level as we regrow the company. And in order to do that, we've methodically.
analyze that the right spend rate is kind of in the vicinity of about seven to eight million dollars per annum. So you know call it you know back to the envelope a couple million dollars a quarter. So that's our current plan for the upcoming fiscal year is to once Q1 rolls around in the spring we're looking to go back to approximately.
we would commence in the fourth quarter. That's correct.
and
What kind of an enrollment growth you think we could kind of plan for a model with a 2 million a year spend a quarter spend?
Well, what you have to realize is last year we were generating on a quarterly basis for pre-licensure anywhere between three and five hundred enrollments a quarter. So when you start to do the year-over-year comparables, you have to kind of take that out of the analysis or out of the equation.
So, as we enter next year, there is no reason why in the second half of the fiscal year that we can't be increasing our enrollments on a year-over-year comparative, right? So, in Q3 last year, we did about 1,800 enrollments and then in Q4, which is a softer quarter, we did –
about 1,500 enrollments. As we look at that comparative a year from now, we should be able to hit that or exceed those numbers.
The second half would be aimed for about $1,800.
total enrollment.
Port quarter.
Yeah, in that range, yeah. Okay. Anywhere between $1,500 and $1,800 a quarter, correct. Got it. And of course, you know, there's obviously a lag between the enrollments and what happens in the student body, which is driving your revenue. Sure. And so, by the second half of 2024, the student body as a whole will start to flip and start to grow again. And that includes...
what's happening in the prelicensure business, right? So once you get into the second half of 24, the prelicensure wind down has largely taken place. There's still some left, but it becomes less of a factor in what's going on. And at the same time, the enrollments start to generate that new student body. And that's where your waiting time ofpo sharing definitely has taken place. That's it. Thanks for joining us for ours, and we'll Chelsea. Thank you. I hope that we can Legalise That way we can brotherly
It's imminent. It's imminent. Okay, great. And then just lastly on Phoenix and the four new campuses and sort of the teach out.
You know any indications on what we should look for revenues this year and next year has any of that changed?
No, our estimates for pre-licensure, because we know precisely how many students in each of our markets will be taught out over the next 15 to 18 months, we have a very good idea of exactly what the revenues are going to be.
We're going to be in that like 11 million range for the full year, the full fiscal year that we're currently in, fiscal 2023.
And then it drops down into that three or four range in the final year of fiscal 24.
that three or four range in the final year of fiscal 24. Got it.
Thank you. That's it for me.
Thank you. That's it for me. Thanks a lot. I'll take it off then.
Thanks, Raj.
Our next question comes from the line of Brett Rice with Janie Montgomery Scott. Please proceed with your question.
Mike, can you hear me?
Yes, good afternoon, Brett.
Hi, Mike. Hi, Matt.
I have a question on the
timing and how we
extricate ourselves from the leases on the pre-licensure campuses? I mean, you've got long-term leases, but you can't sublet it until the teach-outs are over. You know, what's the timing factors there? Yeah, great question, Brett.
So, just so you guys are aware, we typically, historically for the campuses, we've had leases that are ranging in kind of a seven year level, in a seven year duration. And all the leases, once our teach out is done, will be at least a couple years in. So we really only have about five years to go.
a good amount of activity in terms of showing these campuses to other nursing schools. And so what we're looking to do, Brad, is to actively sublet space in all of our pre-licensure locations. And I think we got these right the way that families would normally would be.
by approximately January of next year, January of 2024, so about a year from now.
Our teach-out ends in Phoenix in April of 2024, and in the summer of 2024 in the other locations.
Now, one thing to be aware of is that at this point, we're planning to keep our Phoenix campus location and we're going to convert that building, that suite, into a USU nurse practitioner immersion space because we've decided to no longer conduct immersions in other locations.
So, we really only have to worry about our other four locations and I'm pretty confident we will have the sublets done by the time our teach-outs are over in each of those four locations.
Mike, in this four locations other than Phoenix.
Are you paying at or below market rent right now? Do you know?
Yeah, I mean, the leases in each of our locations were all in kind of the low 20s per square foot, so it was a fair commercial deal at the time for each of those, and that's kind of the market rate. So, yeah, I mean, the leases in each of our locations were all in kind of the low 20s
Okay.
You've touched on this, but I just want to make sure I think I heard it.
the release of the 1.5 of the 5 million restricted cash
the balance
of that release is imminent. Did I hear you say that in response to one of the analyst questions?
No, no, the question was the $1.5 million that has been agreed to be released by the surety bond provider, when is that going to happen? And I said that was imminent. So that question regarding the $1.5 million.
All right, what has to happen for the balance to be released?
That is a very good question. We – once earnings is over with today, we're looking to have some subsequent conversations with the bond provider now that they've seen our results for the quarter, and we're hopeful that we can convince them to release some more.
But I prefer not to, at this point, indicate either way how much or when that might happen.
Okay and and and last one from me the
two qualified investors that invested
$5 million apiece.
in these convertible type notes.
What is the status?
of that investment and are these people working with you? Are you in compliance with your obligation to them? Could you talk to us a little bit about that?
Sure, I don't, you know, this is a convertible note that doesn't have any covenants as it relates to that. So there's no compliance issue whatsoever. And we're making the requisite interest payments each month as required.
And, you know, the convertible instrument is currently priced at $1 a share, so they're unlikely obviously at this point to convert. So that's really it.
Great. Thank you for taking my questions.
Thank you, Brett. Have a good afternoon.
And as a reminder, if anyone has any questions, you may press star 1 to join the queue. Our next question comes from the line of Mike Rondell with Northland Securities. Please proceed with your question.
Hey guys thanks. Um and Michael you said...
that you got a couple term sheets on an AR facility earlier, but you didn't like the terms.
Any sense of kind of the range of terms you might be looking at now?
No, I mean, you know, Mike, just to be clear, the terms that we received from a commercial perspective and others, a pricing and a cost perspective, they were probably okay. They're probably acceptable to the company. But because of the prelicensure at the time, the prelicensure proba-
process and so all that regulatory concern now is has been mitigated.
So it was more about covenants as opposed to pricing. And to be EBITDA positive and to kind of begin to throw off cash if you will.
Well, so that's an interesting question because we're AB.positive now because of the restructuring and all of that that we put in place. So once we put the marketing plan in place that would be possible with the AR facility, we'll be ramping.
spend at a rate that keeps us at that adjusted break even-ish type of level. So there isn't a magical, you know, revenue number in the future that would cause that inflection point. Basic ideas, we maintain client status by increasing the tool rotten.
the place that we are we don't get ahead of ourselves with spend as we ramp up the marketing spend
That makes sense. Hopefully that makes sense to you.
Yeah, it does. I mean...
I guess I'm just trying to figure out, you know, steady state, what does the company look like in a couple years? Is it?
You know you're spending these marketing dollars to drive You know break even adjusted EBIT out when does that yeah, you know flip if you will and when do we get more?
Yeah, so the way you just described it is the way to think about it for the next couple of years, okay? So, fiscal 24 and 25 and the REITs licensure program. So, I'd start thinking about kind of that larger adjusted EBITDA number laid in 25 and into 26 and 26. So, I'd start thinking about that larger adjusted EBITDA number laid in 25 and 26 and
Fair, fair. Okay. Thanks, guys.
Have a good afternoon, Mike. Thank you.
And we have reached the end of the question and answer session. I'll now turn the call back over to Michael Matthews for closing remarks.
Thanks everyone for participating in today's call. We look forward to speaking with you again in our third quarter earnings call in March of 2023. Thank you. And have a good afternoon.
And this concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.