Q4 2022 Agile Therapeutics Inc Earnings Call
Matthew Riley: Good afternoon, and welcome to the Agile Therapeutics fourth quarter and full year 2022 financial results conference call. Please note, today's event is being recorded. I want to turn the conference over to Matt Riley, head of investor relations.
Matthew Riley: Hello everyone and welcome to today's conference call to discuss our fourth quarter in full year 2022 financial results and corporate updates. Before we start, let me remind you that today's call will include forward-looking statements based on our current expectations, including statements concerning our financial outlook and financing prospects for the future, our outlook for the first pass and full year of 2023, management's expectations for our future financial and operational performance, including our expectations regarding the market growth of Twirla and our operating, Our business strategy, our partnership with a faxist and its ability to promote growth, our product supply agreement with Nurex and its ability to make twirl up broadly in help of patients, our digital advertising campaign and its ability to promote growth, and our assessment of the combined hormonal contraceptive market generally.
Matthew Riley: Among other statements concerning our plans, prospects, and expectations, such statements represent our judgments of today and are not promises or guarantees and may include unresolved risks and uncertainties that may cause actual results to differ from the results discussed in a forward-looking statement.
Matthew Riley: Furthermore, during the course of today's call, we will refer to certain non-gap financial measures. A reconciliation of gaps to non-gap measures is included in our press release issued today, which can be found in the investor relations section of our website. Please refer to our SEC filings, which are available through the Investor Relations section of our website. For information concerning risk factors that may affect us, we undertake no obligation to update these statements, except as required by law. The information on today's call is not intended for promotional purposes and is not sufficient for prescribing this.
Matthew Riley: The winner of today's call is Al-Al Tamari, Agile Therapeutics Chairman and Chief Executive Officer. Following our prepared marks, we'll open the call to your questions. I will now turn the call over to a tap. Great, thank you, Matt.
Alfred F. Altomari: Thank you all for joining us on our call-to-fail. 2022 was a turning point for Agile as we continued to advance revenue growth for Twirla and transformed and streamlined our operating model to reduce expenses, which we believe sets Agile up for a strong year of continued revenue growth in 2023. We think the third quarter of 2022 was a breakout quarter for Agile and Twirlas because we saw meaningful growth in net revenue, twirl of demand, and twirl of the factory. Following the third quarter, many of you have been asking an important question.
Alfred F. Altomari: How do we know that the performance is sustainable and not just an anomaly? Today, I believe we can answer that question with our fourth quarter 2022 performance, which saw continued double-digit, quarter-over-quarter revenue growth, combined with disciplined spending and provides insight into why we are encouraged by what we're seeing so far in 2020. Earlier today, we issued a press release with our detailed fourth quarter and full year 2022 results. I want to walk you through a few of those results now.
Alfred F. Altomari: Net revenue for the fourth quarter was $4 million, which represented a 33% increase from the $3 million we reported in the third quarter of 2022. The 33% increase comes after we reported a 43% quarter over quarter increase from the second quarter to the third quarter of 2022. We think this is notable because we finished the second half of 2022 with momentum that contributed to full year 2020 net revenue of $10.9 million, a 165% increase over 2021 net revenue of $4.1 million.
Alfred F. Altomari: Our fourth quarter net revenue reflects improvements in the following key areas. Swirl of Demand for the fourth quarter, as reported by Symphony, with 37,452 total cycles, a 25% increase from the third quarter of 2022. Full year 2022 total twirl demand was 105,667 total cycles, a 213% increase from 2021. For the factory sales for the fourth quarter of 2022, as reported by our wholesalers, for 43,230 total cycle, a 30% increase from the third quarter of 2022. For the full year 2022, Turola factory sales were 114,546.
Alfred F. Altomari: This total exceeded the 113,600 total cycles we previously got for the year and represents a 235% increase from full year 2021. As a reminder, the difference between the demand and the factory sales cycles is that not all the prescription demand and the non-retail channel is reported to third parties like Sympiricubia. The demand numbers we receive from our wholesalers do include the sales to the non-retail channel, and therefore, we believe that the factory sales more closely represents the total demand for twirl across all our channels.
Alfred F. Altomari: Net revenue, demand, and factory sales are all key components of our overall growth plan, but growth in these areas is only meaningful if we can simultaneously manage our operating expenses. As you can see from our results, we were disciplined in managing our spending in the fourth quarter and total year of 2022. Non-GAAP operating expenses for the fourth quarter of 2022 were $9.2 million, which is identical to the $9.2 million reported for the third quarter of 2022. Full year 2022, nine GAAP operating expenses were $45.5 million, a 29% decrease from the $64.4 million reported for the full year of 2021.
Alfred F. Altomari: Before I move on to the Outlook for 2023, I want to take a moment to put 2022's year-over-year performance into perspective. From the end of the fourth quarter, 2021, to the end of the fourth quarter, 2022, factory sales increased 205% while OPEX decreased from 18.2 million to 9.2 million.
Alfred F. Altomari: So in the past year, we were able to grow our sales over 200% while decreasing our spending by 49%. We plan to maintain spending discipline and therefore expect to see our total operating expenses for 2023 to be lower than 2022. Our outlook for all these measures is primarily attributable to the re-engineering of our business plan as a commercial company that focuses on leveraging external partnerships while keeping our internal infrastructure lean and efficient.
Alfred F. Altomari: We are confident in our ability to execute our business plan, and we believe that our lean commercial platform can continue to produce strong results in 2023. To that end, in January of 2023, we reported that we expect 2023 net revenue to be in the range of $25 to $30 million, which would represent a year-over-year growth of 129% to 175% We recognize this goal may sound ambitious. So let me explain why we think it's achievable.
Alfred F. Altomari: Our initial review of January, 2020, demand saw a single month record high for Twirlas demand and a single month record high for retail cycle demand, which is important because the retail side of our business is our most important. As we continue through the first quarter of 2023, we expect to see factory sales, reflect wholesaler workdown of inventory levels, which rose slightly at the end of 2022, but are encouraged by these initial trends. For what we can tell from The preliminary reports for the first two months of 2023 give us confidence that we can continue to grow Twirlas and meet our 2020 goal of achieving net revenue of $25 to $30 million and our greater financial goal of generating positive cash. Our commercial plan is designed to create growth by focusing on the five states that have the highest level of reimbursement potential for Twirlas and are estimated to allow us to reach 45% of the U.S. women between the ages of We believe there's still a lot of room for growth in this segment of the contraceptive market by going deeper into these five states.
Alfred F. Altomari: We believe our lean commercial platform can continue to deliver the growth needed to meet our goals, in part because of our continued focus on collaborations with our telemedicine providers, which we hope to celebrate in the second half of 2023, and our relationship with a fact, which allows us to grow the non-retail channel through the Planned Parenthood Centers and Public Health Clinics. I'd like to take a moment to comment on a few of our other financial results, which we believe also demonstrate a year of progress in 2022.
Alfred F. Altomari: Cost of Good Sold or COGS, which consists of direct and indirect costs related to manufacturing the goods sold, were $1.7 million for the fourth quarter and $6.8 million for the full year of 2022, compared to $5.7 million and $10.7 million for the same periods of time in 2021.
Alfred F. Altomari: We closed out the fourth quarter and the full year of 2022 with a net loss of 3.9 million, or 10 cents a share, and $25.4 million, or $118 per share, respectively, compared to a net loss of 19.5 million, or $6.63 per share, and 71.1 million, or $29.28 per share, for the comparable period in 2021. These reflect the reclassification of certain warrants, which were issued in conjunction with the financing in 2021 and 2022.
Alfred F. Altomari: The reclassification of these warrants as liabilities resulted in 3.8 million in other income for 2021 and 25.5 million in other income for 2022. Moving forward, we expect to see fluctuations in our net income or loss, depending on the valuation of these warrants, which will need to be performed on a quarterly basis and are expected to result in non-cash accounting. We do not expect these adjustments to have any effect on the company's previously reported revenue, operating expenses, cash flows, or cash.
Alfred F. Altomari: After deducting the other income attributed to the valuation of these warrants and the one time only non-cash charge associated with the transfer of our equipment decorium in the third quarter of 2022, the non-gap law, was approximately $39.8 million for the year ending December 31st, 2022, or $1.84 per share. We believe excluding these items represents a more useful comparison of the results of our operations in the periods we're discussing.
Alfred F. Altomari: We ended 2022 with $5.2 million of cash on hand, in addition to the $75 million at the market or ATM arrangement. We will continue to evaluate all available options to finance the company and continue to explore opportunities that can potentially accelerate our timelines to generate positive cash flow, including exploring business development opportunities. Before we open the Q&A, I want to emphasize that the entire organization remains focused on achieving our goals of growing twirling, attaining the 2003 net revenue target of $25 to $30 million, and ultimately generating cash flow positive.
Alfred F. Altomari: We remain confident we can accomplish these goals by first, focusing on the five states that have the highest level of reimbursement potential for Tuol and are estimated to allow us to reach 45% of the U.S. women between the ages of 18 and 24. Second, continuing to cultivate the non-retail channel through the reach of the AFA's customer network, which includes Planned Parenthoods and Student Health Centers.
Operator: Third, increasing our footprint in telemedicine through our collaboration with Norex, which has provided contraceptive options to more than 1 million patients. Our vision and ambition is that Norex can accelerate the retail channel growth similar to the way faxes that helps us accelerate the non-retail channel growth. Now we'd like to give an opportunity for a covering analyst to ask any questions. Operators, you can now open a line for Q&A. Thank you. Please stand by. Well, we have our first question. One moment.
Oren Gabriel Livnat: Our first question comes from the line of Oren Livnap from H.C. Wainwright. Your line is open. Thanks for taking my question. Can you hear me?
Oren Gabriel Livnat: Yeah, Warren. Okay, great, great, great. Thank you.
Alfred F. Altomari: So I was hoping first to just talk about this $25 to $30 million guidance that you've reiterated. I mean, that would be pretty remarkable growth year over year, and I'm hoping we can dig a little bit into, I guess, the contributors to that and visibility on that. First, I guess, can you characterize what contribution you expect, I guess, year-over-year from the retail and non-retail channels to that number? I mean, currently, I think, volume-wise, retail or non-retail is already at or above 40%.
Alfred F. Altomari: Do you expect, like, a major change in the mix for 2023? Yes, Warren. This is Al. Besides Matt and I in the room, Amy, our Welsh, our chief commercial officer, and Jason Bush, our chief accounting officer, are joining me. So I'll turn over to Amy, but at a high level, we expect all boats to rise. I mean, we expect significant contributions, both from retail, which, as we mentioned in the script, we had an all-time high in January, so retail seems to be performing well. That's, you know, our most profitable book, you know, and non-retail, but maybe you can go into a little more detail.
Amy Welsh: Yeah, thank you for the question, Warren. I expect the growth to be the same as you saw in Q4. From a non-retail perspective, that growth came from one large account and a couple of handfuls of moderate to smaller accounts. We look at 2023, and, you know, we see here we'll have one large account each quarter. So we should be able to see that type of growth. And what we're learning from the growth of a large account or the addition of a large account,
Alfred F. Altomari: Yes, so Warren, just to answer your question, I mean, like, mathematics. In the fourth quarter, we did $4 million. So on a run rate basis, you know, we're $16 million plus business. So, you know, if you apply the same growth, as Amy was saying, that we've seen, particularly in the fourth quarter, and said if we could stay on that curve, you start seeing the numbers we see.
Alfred F. Altomari: So there's no reason to believe we can keep growing this business the way we've been. At the same time, we'll keep our hand on the rudder of the optics, you know, and that's, you know, that's the one. That's the one-two combination that gets across the goal line and starts generating cash.
Oren Gabriel Livnat: All right, if I could dig in. Well, sure, I'm going to keep digging in there until you tell me to stop. So you kind of anticipated my next question, which is,
Oren Gabriel Livnat: until you tell me to stop. So you kind of anticipated my next question, which is about this non-retail channel growth. It's pretty amazing how big an impact one large retailer has.
Oren Gabriel Livnat: to the total volume picture here.
Alfred F. Altomari: and I have more. Yeah. So I'm going to give you kind of a 30,000 view, and then Amy will take you through it. You know, it's really interesting, Arnda, you know, I think you more than anybody appreciate this.
Alfred F. Altomari: The governor, Gavin Newsom, you know, as you probably saw with one of the big chain accounts, kicked them off the Medi-Cal formulary to defend women in the state. So in his press statement, he said that the California economy and, on a GDP basis, would be the fourth largest economy in the world, which just, I know, that just stunned me. And so it talks about the five-state strategy we're on. When we look at our five states, you know, they represent, we talk about 45% of the market, they're 41% of the GDP in this country. So, you know, I'll turn over to Amy on the visibility. So California's a good state for us, Lauren, so I'll let Amy tell you about her visibility.
Amy Welsh: Yeah, I think your question was, where are we with the process? I think the last couple of times we explained that the effect of the sales process is a little bit longer.
Amy Welsh: Yeah, we, from a clinical perspective, it's clear to the next handful of large accounts that this really is a meaningful option for their patients. So we're past the clinical phase with all of those larger accounts. And what we're doing is we're trying to work with them from a financial perspective, but when it makes sense to partner with, withdraw from, and bring them on. So it's sort of the last phase for most of those larger accounts, which is why, in my guesstimate, we'll see them happening sort of like this
Alfred F. Altomari: So we won the battle clinically, Oren, so now it tends to be when it's the right system, when they buy, and the purchasing people work with us. Yeah. So we have optics, all this, so we have the wins, so we expect to see volume now.
Alfred F. Altomari: Yeah, believe it or not, yes. Most of these large accounts are right there on the West Coast, specific to the state of California.
Alfred F. Altomari: What makes California peculiar, Warren, is just a little bit of a lot of times in other states, as Planned Parenthood can be a single clinic, as we've talked about before, or in a buying group. In California, so many affiliates tend to be in one buying group. So one purchasing person or one P&T represents a number of individual affiliates. So, in a lot of ways, Amy has one-stop shopping. So I think they just aggregate their volume, and look, they use that as a negotiating tool.
Alfred F. Altomari: So California seems to be, I don't know Amy, the most organized, for lack of better words. I mean, I think... That's a good way of putting it. But when we win, we win big or enough. Right.
Oren Gabriel Livnat: And so obviously, as we see volume accelerate, you know, it's been pretty remarkable how it can ramp up in that non-retail channel already, you know, in the last quarter or two. As we see that continue to grow, you know, before we get carried away with, you know, how that might translate to revenue on our end before you report. I guess an important factor is the economic side. And I know it's less profitable, of course, than retail.
Oren Gabriel Livnat: But, you know, do you feel pretty confident that, I guess, the gross to nets or the net pricing per cycle and going forward will be consistent with what you have managed to achieve so far in Planned Parenthood or other non-retail?
Amy Welsh: Yeah, contractually, we don't expect any changes there from our pricing, 340B pricing that should be lost. You shouldn't see any surprises. And one thing that when you were asking the question, Orrin, that made me think about that I wanted to share is that we're also seeing a positive effect on retail through these gains in California. I think that Alan, on a couple of these calls, has explained that these physicians do work in a plan parent and very often work in the community as well.
Amy Welsh: So we're starting to see a very positive effect on the non-retail account wins in California coming over into the retail side, too. So, but yes, to answer your question, no, we're going to be consistent on the pricing. Well, I'll give you the big picture, the answer, but maybe Jason will come in common if I get it wrong.
Alfred F. Altomari: The mix in our third and fourth quarter hasn't changed much. So the bar is all those rows. So our average yields per cycle are pretty consistent, right? quarter over quarter? Yeah, that's exactly right.
Jason Bush: Like Al mentioned, Q3, Q4 is consistent, and from a forecasting perspective, looking into 23, I'm seeing a point or two, maybe an increase in the discounting across the board. So the mix does remain relatively consistent in and throughout 23. So our gross than that is maybe, I think it's stabilizing. I don't know if, for lack of better words, Jason anticipates it going up a little, but I think we had a big shift in the third quarter. The fourth quarter was about the same.
Oren Gabriel Livnat: We're saying going forward, it looks pretty steady. Now, if Amy is wildly successful in retail, which we hope, that might change for the better. If the mix changes more and the other side, we'll take a little bit of a haircut. But all volumes are good to us. We like volume. Yeah. So speaking of retail, that's growing pretty nicely. I mean, I have IQVIA, and that's in the, you know, 50, 60% year-over-year growth. I think the symphony is even better.
Amy Welsh: You know, how much effect of NERCs are we already seeing in the current volume, or is that really almost all upside in terms of, you know, inflection or trajectory in 2023? Yeah, it's going to be, we have not seen much at all. What we've been doing with our partner, Norex, over the last quarter has been really just making sure that all of our tools will work with them, everything from our co-pay card to websites and co-promotion, and just getting everyone up to speed to make sure that when they're ready to go full bore and completely convert to Twera, that they are set up systematically, and the patients will be able to get it seamlessly. I think you' Hopefully, as early as Q2, but confidently in Q3.
Alfred F. Altomari: Okay. And can you just remind us that it's an exclusive? You're going to be their exclusive patch, right? So are they just going to, I guess, similar to Planned Parenthood that has adopted your product? Are they just going to exhaust whatever, I guess, Zoolane or generic supply they have and then go whole, wholly into prescribing Torla? Yeah, we're, think of that as a formulary. We're in a preferred position on their formulary. You know, it's going to be up to them how to manage the patient. Amy's been really sensitive to patients. Like if a woman's on Zool-lane and she's happy, you know, she should stay.
Alfred F. Altomari: I mean, we really, that's some of the behind-the-scenes things we've been talking about. You know, now we hope a new patient comes in; we get that patient. So, you know, we're in a preferred position, which is great. We're a good partner with them; Amy works hand in hand with them. But we say, look, you know, do what's right for the patient, you know, it will benefit them in the long run. So that's kind of in our philosophy.
Alfred F. Altomari: Exactly right. So it's not going to be black and white, like some of the plan paranoids, or we're going off, you know. So that's a little different situation. This will be kind of, as Amy was saying, we'll grow into it. Yeah. And I guess just one last one on retail long-term.
Oren Gabriel Livnat: Has there been any noticeable tailwind or change in payer coverage or payer compliance with coverage mandates with regard to Troila or any other contraceptives that you've seen since the White House, you know, started to bring some real heat onto payers? The answer is yes. Amy and I review that data a lot. I mean, what we see is all boats arising in the early days, kind of the headwinds would require doctors doing these letters of prior all, so we talked to them through, or, you know, or letters of medical necessity. And they were even being stopped, which is what we thought was wrong.
Oren Gabriel Livnat: We're seeing them go through. So there's less, if you will, on this script; the scripts have a better chance of getting filled. You know, another reason we like the recs and specialty farms is that they can talk to patients through it, saying, hey, it might take us a week or two to, you know, get this paperwork in, but in the meantime, here's a sample. So, you know, the answer is yes, and we see it across all brands, which is great.
Oren Gabriel Livnat: When your question of formulary, no, we haven't seen much movement in formulary. You know, so doctors, so we still think the big win for us is, imagine a day when we get the formulary wins, Lauren. You know, the wins, what we're doing right now is remarkable. I believe in retail.
Oren Gabriel Livnat: But formulary is, I think, a whole different game if we can unlock the formulas. Sure. So if there is some improvement in the, you know, compliance with the letters of medical necessity or whatever, the waivers, so to speak, for ACA, is it an opportunity for you to go back? I imagine early on some people wrote prescriptions, especially when they had a broader footprint with sales, some people wrote prescriptions, and they were probably inappropriately rejected by payers. And I can only imagine that's, you know, a tough first impression for a doctor to have with any product launch.
Oren Gabriel Livnat: Do you have the opportunity to go back and revisit as this, you know, the landscape has improved a little bit for some of these doctors and say, hey, I know you tried and failed before, but try again? Yeah, I mean, two things. One, you know, it's better than it was, but it's still not perfect. So we're routinely answering questions by Congress and the Senate about whether it's fixed yet. Your question, and the answer is no.
Alfred F. Altomari: You know, we believe we shouldn't even have to do a lot of this work. So not all of them go through at 100%. So it's very planned and precise.
Alfred F. Altomari: Some plans or PBMs do better than others. So while it's improved, it's not perfect, so we're routinely being advised to answer Congress and answer the Senate on this. They still have an active eye on this.
Alfred F. Altomari: So I think while it's getting better, it's not perfect. You know, and then we do tell doctors. We do tell doctors that it's getting better. But rather than just sending the script down the street to the local CBS station, give us a script.
Alfred F. Altomari: You know, once it's in our hands, our hit rate is a lot higher. Amy can, I mean, it's as close as, you know, we can handle that script across the goal line. But if she goes to CVS and they say your car doesn't work, that's a bad customer day for them.
Alfred F. Altomari: So that's why things, especially farming and health medicine, are so important. I mean, that's the strategy. The more volume we get there, or our rate will go up. Okay. And just lastly, I appreciate your patience.
Oren Gabriel Livnat: OPEX, you mentioned it being down year over year. I guess, can you talk about that? Is that expected to be sort of flat-ish or up a little bit from the current level as you sort of have these new programs rolling out and are set to get a lot more traction? And I guess on your guidance of 25 to 30 million, you have an ambition of actually potentially cash-full break-even at some point before the year-end, which would be, you know, pretty remarkable.
Oren Gabriel Livnat: And I'm just trying to figure out, you know, at what OPEC level do you feel like you can maintain sustainable growth, right? Like, you've obviously reorganized a lot, and you've got a lot of momentum on the sales side. How much growth long-term do you think you can sustain beyond even 2023 and, you know, just reaching break-even with this footprint? Do you think you're right-sized for substantial growth beyond 2023, or would you have to start investing more again? No, the answer to your last question first: I believe we're right-sized, and we can sustain growth, you know, the growth we're on. But it's based on one word, Amy's ability to partner.
Alfred F. Altomari: We can't do it alone. So I think as long as we have these great partnerships, Oren, you know, maintain a strong presence in the field and a good leader like Amy that can really keep everybody working on all the oars in the water at the same time, I think we can continue to sustain this growth. And like down the road, we'd love to invest in the business. Again, I'll be honest, but we're not there yet, you know, but I'm not going to cry poor mouth either. I mean, I think we have a good investment to work off of, and I'm happy and I'm pleased with the level. To your next question about the range, Jason, I think it's in that range.
Jason Bush: So I think before we said nine to ten and a half, something like that, because it gets a little lumpy at times, you know, when we buy samples, for instance, we have to buy the batch and expense at that quarter. So I think we're in the kind of a range of. You know, I'll call it 9.5 to 10 and a half, I think that was what we said before. The 9-2, we're proud of. That's done. It was a great day.
Alfred F. Altomari: That's a lot of belt tightening, but we didn't cut corners. Amy got the investment. She needed the greatest business, so she wasn't complaining.
Alfred F. Altomari: She'd always want more, but she's not complaining. And then with the profitability, I mean, cash post sustainability. You know, we're not going to be sustainable this year. We're not going to throw away the year. There's not going to be, I know you know this, but we see the fourth quarter or maybe the last couple of months of the year that will break through there. And then hopefully, we don't go back, and then, you know, we go in 24 that way. So we're shooting for the fourth quarter-ish. You know, that's where the lines crossed.
Alfred F. Altomari: And if we can keep the OPEX in roughly the same zone of like 9 to 10, we probably just need a $12 million net. So on the top line, Yeah. And then we have to calculate the cost of it sold, you know, that would that's the math. And so it really is just a rhythm of sex. So you say what level of sales do we need to cover the off-X? It's probably 12 and that, you know, so that's and that's, and that number doesn't look scary to us.
Oren Gabriel Livnat: All right. Well, I look forward to future results and keep up the good work. I appreciate it. We're losing questions, Orr, and I think you got everybody's questions. So we're listening to questions out of the queue, but thank you. All right.
Operator: Thank you. And I'd like to turn the conference back to Al for his closing remarks. Great, thank you.
Alfred F. Altomari: Thank you very much, operator. You know, I'd like to take a couple minutes to comment on the recent special meeting we had with our shareholders. To continue to execute our business plan and achieve our objective for 2023 and beyond, it was really important that we regain our compliance with our NASDAQ listing. And so to put us in a position to raise capital across a broader base of sources, while we believe in the notable growth in 2022, it just wasn't enough, you know, to regain our compliance with NASDAQ listing standards in our first compliance period. We've been granted a second compliance period with NASDAQ, but we need to obtain authorization by our shareholders to implement a reverse stock split.
Alfred F. Altomari: If and when the board believes it's the right time, we explored all the available options available to us before concluding that our ability to implement a reverse stock split puts the company in potentially the best position to regain the NASTAC listing requirements and to appeal to a broader base of investors and to improve the perception, you know, of our common stock and overall in the investment, you know, and with the investment community and the scrutiny by the investment community. So we would take a minute to thank our shareholders for your understanding on this issue, which was a challenging issue for us to think through, you know, that, you know, that, you know. We really appreciate your support and your understanding and, you know, and your support of this important resolution.
Alfred F. Altomari: So we just want to say thanks, and we're also just getting a great start in 23. We're proud of 2012. We're also off to a great start in 23, and, you know, we're not going to sleep until we hit the commitments we've given you. We take pride in that, and the ultimate prize is to draw up a sustainable business that generates its own cash. So thank you to the shareholders, and thank you to those that are following us to appreciate it. So thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a good day. The
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