Artivion Inc. Q1 2023 Earnings Call
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Good day, ladies and gentlemen, and welcome to the Archer beyond first quarter 2023 financial 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 conference. Please press star zero on your telephone.
Power to reach a live operator at this time, it's my pleasure to turn the floor over to your house, Brian Johnston V. P of Caremark group Sir go ahead.
Thank you good afternoon, and thank you for joining the call today with me from <unk> management team are Pat Mackin, CEO and Ashley Lee CFO before we begin I'd like to remind you the borrowings following statements to comply.
The safe Harbor requirements of the private Securities Litigation Reform Act of 1995 comments made on this call that look forward in time and both risks and uncertainties and are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095. The forward looking statements include statements as to the Companys or managements intentions hopes beliefs expectations.
Or predictions of the future. These forward looking statements are subject to a number of risks uncertainties estimates and assumptions that may cause actual results to differ materially from these forward looking statements additional information concerning certain risks and uncertainties that may impact. These forward looking statements is contained from time to time in the company's SEC filings and in the press release that was issued earlier today.
With that I'll turn it over to Akshay and CEO Pat Mackin.
Okay, Thanks, Brian and good afternoon, everyone.
I am pleased report that the first quarter of 2023, our business performed well, enabling us to deliver constant currency revenue growth of 10% year over year.
Our strong performance was led by her Onyx platform, which grew 24% followed by volume grew at 8% stent grafts at 8% and tissue processing at 7% all compared to the first quarter of 2022 on a constant currency basis.
Our first quarter success demonstrates that our strategy is working.
Under this strategy.
We're driving increased revenue within existing markets as well as in new geographies through expansion of our commercial footprint.
By expanding our addressable market through our additional clinical pipeline.
To that end, we recently received an approval letter from the FDA for the Port quiet PMA and expect approval.
For our recent female inspection as well as our recent instead.
Inspection is finalized leave it.
It's even more confidence in our ability to deliver on our financial commitments for 2023.
Given our first quarter performance, we likewise are even more confident in our ability to deliver strong bottom line growth in 2023 and beyond.
As you'll recall from our Investor day in March of 2022, we've committed to delivering annual double digit constant currency revenue growth through 2024.
We're focused on driving further operating leverage across our business to deliver adjusted EBITDA of 75 plus million dollars in 2024.
Our focus is clearly paying off as I mentioned earlier on X revenues grew 24% on a constant currency basis in the first quarter compared to the first quarter of last year.
We saw double digit constant currency year over year revenue growth at onyx across all geographies.
We remain confident we will continue to take market share globally with the only mechanical heart valve that can be maintained at INR of one five to two point out.
Additionally, stent graft revenues grew 8% on a constant current currency basis in that first quarter compared to the first quarter of 'twenty two.
Demand for stent graft portfolio remains high and we expect it to grow even higher.
As you may recall to meet this demand we hired additional staff in Germany last year.
Now contributing to our increased aircraft production and whose productivity we expect to improve throughout the year.
As a result, we anticipate in 2023 and beyond being able to better meet the strong demand of our stent grafts and accelerate the growth in revenues of these products.
We're also excited executing extremely well on our initiative to grow product sales in APAC, and Latin America to new regulatory approvals and commercial footprint expansion.
In APAC and Latin America, we delivered first quarter constant currency revenue growth of 18% and 34% respectively compared to the prior year period.
We continue to expect these regions to be important growth drivers over the coming years.
As I mentioned earlier, we expect FDA approval for <unk>.
Following this approval, we receive a $14.3 million milestone payment.
Net of the amounts owed to our former partner.
We'll begin shipping products.
Revenue generating product to Baxter.
As for product mitral, we're in dialogue with the FDA and look forward to potential approval in the second half of this year.
As we mentioned in our last call.
<unk> for Pro Act much like 2023 is not factored into current forecast and would represent further upside from a revenue growth outlook for 2023.
In addition to our progress in each of these three initiatives, we continue to make progress on the Mds trial.
We've now enrolled 51 patients in the persevere trial, which is our U S. IDE clinical trial for PMA approval.
And up to 30 U S centers and approximately 100 patients who have experienced an acute taipei dissection.
The combined primary efficacy and safety endpoints of the trial a reduction in all cause mortality, new disability stroke, myocardial infarction, and new onset of renal failure requiring dialysis.
And the re expansion of the true limited the aorta.
We anticipate completing full enrollment and persevere in the second half of this year.
Following a one year follow up period, assuming the trial meets its endpoints, we anticipate we should receive FDA approval for <unk> in 2025.
In addition, our partner Endo span is making progress on the U S. I'd culturally out for its next aortic stent graft system.
In that trial, there were approximately 44 patients enrolled and treated.
The total number 53 patients enrolled and approved for treatment.
And just spin estimates enrollment completion later this year and PMA approval in 2025 again, assuming the endpoints are met.
To reiterate if these PMA trials proceed as anticipated, we expect FDA approval for AMD and Nexus in 2025.
At the time, assuming we exercise our option for understand these products would increase our adjustable market opportunity by an estimated $900 million.
Looking ahead, we are.
Intend to build on our strong growth in 2023, but continue to drive growth in the on X aortic stent grafts, we have a clear differentiation and pricing power.
We also expect to benefit further from our investments in commercial channels and new regulatory approvals in Asia Pacific Latin America.
With that I'll now turn the call over to Ashley.
Thanks, Pat and good afternoon, everyone total revenues were $83 $2 million for the first quarter of 2023 up 8% on a GAAP basis and up 10% on a constant currency basis, both compared to Q1 of 2022.
On a year over year basis in the first quarter of 2023 on X revenues increased 23% <unk> increased 7% tissue processing revenues increased 6% and a.
Nordic Stent grafts grew 3%.
On a constant currency basis compared to the first quarter of 2022 on X grew 24% by Hulu and stent graft revenues, both grew 8% and tissue processing revenues increased 7%.
On a regional basis first quarter 2023 revenues in Asia Pacific increased 17%.
Latin America increased 36%.
North America increased 10% and Europe decreased 1% all compared to the first quarter of 2022.
On a constant currency basis revenues in Asia Pacific increased to 18% Latin America increased 34% North America increased 10% and Europe increased 5% all compared to the first quarter of 2022.
Gross margins improved sequentially from the fourth quarter to 64, 6% in Q1 compared to 65, 7% for the first quarter of 2022.
The decrease compared to Q1 of 2022 was driven by inflationary impacts on materials and labor as well as geographic and product mix.
G&A expenses in the first quarter were $54 million compared to $39 million in the first quarter of 2022.
Excluding nonrecurring acquisition related business development expenses and benefits and other nonrecurring charges.
G&A expenses were $45 $2 million for the first quarter of 2023 compared to $39 7 million in the first quarter of 2022.
R&D expenses for the first quarter were $7 $2 million compared to $10 $1 million in the first quarter of 2022.
The decrease in R&D spending primarily results from savings from the cessation of the project 10 a trial.
Other income and expenses include $6 million and net interest expense and foreign currency translation gains of approximately $1 million.
On the bottom line, we reported GAAP net loss of approximately $13 $5 million or <unk> 33 per fully diluted share in the first quarter of 2023.
Net loss for the first quarter of 2023 includes a pre tax charge of $4 $8 million related to contingent consideration for the acquisition of a M. D S.
And the impact of valuation allowances on our deferred tax assets.
non-GAAP net income was $769000 or <unk> <unk> per share in the first quarter.
non-GAAP income includes foreign currency gains and excludes business development and other nonrecurring charges.
As of March 31, 2023, we had approximately $38 million in cash $314 million in debt and the full $30 million available to us under our revolving credit facility non.
non-GAAP adjusted EBITDA for the first quarter of 2023 was $10 $8 million compared to $10 million for the first quarter of 2022.
Please refer to our press release for additional information about our non-GAAP results, including a reconciliation of these results to our GAAP results.
And now for our outlook for the remainder of 2023, given our momentum in Q1, our price increase initiatives anticipated improvement in supply of stent grafts and anticipated FDA approval for per Claude we are raising our revenue guidance and now expect constant currency revenue growth of between nine and 12.
<unk> for the full year of 2023.
Compared to the previous range of 8% to 12%.
We expect revenues to be in a range of $337 million to $348 million compared to our previous range of $331 million to $343 million.
We continue to expect revenue growth will accelerate more meaningfully in the second half of the year compared to the first as recent hires in Germany become fully productive as we continued to pursue price increases for products, where we have clear clinical differentiation and with the approval of <unk> for Claude.
With our strong first quarter performance continued topline revenue growth general expense management and a decrease in R&D spending. We are also raising our adjusted EBITDA guidance from a minimum of $50 million. So a minimum of $52 million for 2023. This will put us on track to meet our 2024 adjusted EBITDA commitments.
We made in March of last year at our Investor Day.
Further we do not anticipate the need to raise additional capital to fund our debt obligations are investments in our channels.
Or our pipeline in the foreseeable future. We expect we will be able to comfortably service our debt and continue to invest in growth.
And finally, our term loan B contains no financial covenants that would place us in default unless we were to have more than seven and a half million dollars drawn on our revolving credit facility at the end of any calendar quarter, which we do not.
As of now we have the full $30 million available under our credit facility and do not foresee the need to draw on it as a reminder, our convertible notes do not contain any financial covenants.
Overall, we are laser focused on continuing to deliver strong top and bottom line growth to afford even greater flexibility as we consider our future obligations and efforts to deliver meaningful shareholder value I will turn the call back over to Pat for his closing comments.
Got it thanks, Ashley So as you just heard in 2023 is off to an excellent start and we expect that momentum to continue.
Our strategy is working and generating what we expect to be meaningful EBITDA growth this year.
We also took guidance up this quarter and believe it will deliver on our financial commitments for the following reasons.
First continued strong honest honest performance together with potential for product mitral later this year.
To stronger performance in our stent graft business due to recent staffing improvements at our German facility and other supply chain improvements.
Three continued strong performance in Asia Pacific and Latin America.
For growth in Bhagwan PROQUAD due to recent regulatory approvals.
And then finally.
These two U S clinical trials with ambient persevere and to spend next Treehouse are currently enrolling it should enroll this year.
Combined we expect our total addressable market will increase by $900 million in 2025 now assuming we accept.
Exercise the <unk> option.
Through the remainder of the year and through 2024, we continue to expect to grow double digits on a compounded annual growth basis and to generate greater than $75 million and adjusted EBITDA in 2024, which will end up reducing our net leverage to less than three times. Despite the headwinds we face from inflation and its impact on gross margins.
In conclusion, we continue to advance our goal of being the market leader in aortic repair and we expect 2023 to be a standout year for the company.
All of our employees around the globe for delivering an exceptional first quarter results and our continued dedication to our mission with that operator, please open up the lines.
Thank you 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 your question has been answered you could remove yourself from the queue by pressing one.
Ladies and gentlemen, Thats Star one please hold while we poll for questions.
And our first question comes from Rick Wise from Stifel Go ahead Rick.
Hi, Good afternoon, Hi, Pat Hi, Ashley.
Got it.
Nice to see the quarter and great to hear the per clock God knows.
Just maybe my first question was a couple of parts to it on per client.
Talk to us in risk if you could just flush out some of the comments in the press release.
Once the inspection is finalized help us understand what's involved in that and what it's likely to occur and and.
And just you know when and then sort of going on beyond that.
When would you expect to start shipping when do you when does that $14 3 million I think was the number.
Coming in the door, how are you going to put it to use to maybe you know sort of two basic parts. There. Thank you. So much yes. It yeah. So the first one Rick is.
The way this process works. It is a part of the part of the PMA is that they come in for a.
Preapproval inspection and debt that was completed about a month ago and they have to write up their report and send it over to the to the branch. So that's basically what we're waiting on.
Again that could happen.
Any day now.
As soon as that happens we should be you know get the green light and get the approval so yeah.
I'm hesitant to commit with what regulators are going to do but I think we're kind of at the end of like we've received the approvable letter and we're just waiting for this kind of inspection paperwork to clear and then once that's done we should be able to ship shipped product to Baxter.
But you know probably they've got to do some paperwork on their side, but and they're already starting to work on that given the the approvable letter. So we think in this quarter, we'd be shipping product.
And then actually maybe you can comment on when we get the cash.
Yeah, I mean, I think it's within a couple of weeks. After we transfer all of the PMA documentation to Baxter. So again, assuming that we get the final approval from the FDA, which we expect we should get those funds are later in the second quarter and then you know in regards.
You know, what we plan to do with it.
It'll certainly help.
Help to strengthen the balance sheet and we'll continue to move.
Move forward in and drive revenue growth and drive cash flow and in the event that we don't find.
Good alternative uses will consider paying down debt at some point in future.
Yeah.
It sounds good.
Okay.
Maybe just turning to sort of a larger picture.
You've been clear we've heard a lot this quarter Pat I'm sure you listen to earn about some of them are.
From other med tech companies larger and smaller that the environment's improving that volumes are recovering that the macro was getting less of a headwind supply chain blah blah blah blah blah.
I'm just curious do you know.
From your perspective, and from Octavian vantage point portfolio et cetera.
Yeah.
How did how are those factors affecting you.
I you know how does it benefit.
This quarter and how do we think about.
That kind of dynamic macro dynamic improving macro dynamic.
Giving you confidence about the rest of the year, just if you could put all that in context for us.
Yes.
Clearly a lot of the.
We never really experienced and we've talked about this previously we never really experienced a lot of staffing impact for us because of the nature of our procedures.
We grew every quarter in COVID-19, except for one.
So the staffing stuff isn't knowing it may move a case a day or two it causes inefficiency.
The efficiencies it causes a lot of stress on our commercial team.
But we never really felt a lot of that I mean, there was definitely some some noise in the in Europe This past quarter.
With striking and again, how much that really impact things.
It didn't really impact us that much so.
Again, I don't think we really because of the portfolio. We have I don't think we really were subject at the end of the day, if theres a staffing issue they somehow find a way to get the cardiac stuff done partly because of the urgent need of the patients as well as the.
In most cases the profitability of the procedure. So we've been in we've been pretty lucky not to get sucked into the staffing, but it does seem like it's getting better.
Okay. Good.
And.
Actually it.
It went by sort of quick and I want to make sure I understood. What you were saying.
And make sure I understand what you're referring to you talked about.
Price your pricing moving higher I'm hearing a lot of that metric as well.
If you could just kind of like I say it again.
And how what was the impact that item a price in the first quarter.
What are you factoring into your guidance and your expectation Yeah. Let me let me let me take that let me take let me take that one rig so you know what.
Not going to get specific we're not going to get specific because it can competition and things like that so just suffice it to say that.
We have some technologies in our portfolio that are very proprietary.
Nobody else has.
We also have a very high demand on those technologies.
So we are.
In those cases, you know raising prices significantly.
And you haven't even seen them and are yet in our numbers yet.
So those are going to be things that youre going to see in Q2, three and four.
So I'm just going to leave it at that and not going to get more specific.
Okay, I totally get it but good to hear thank you. So much I appreciate it. Thank you. Thanks Rick.
Thanks, Eric.
Again, ladies and gentlemen that star one our next question comes from.
<unk> Kalia from Oppenheimer go ahead.
Hi, Pat nationally this is seamus on for Suraj.
Congrats.
Good I'm good. Thank you congrats on the Florida and thanks for taking our questions.
So I guess to start off kind of what are the kind of key sales and marketing changes in our Rep Commission territory assignments.
That you'll do post a mitral approval.
Yes, we have and even I mean, the great thing about the mitral.
It's kind of unique in this situation and it's one of the few product launches have been involved with the product is already on the shelf.
If it's a label change right. Its just a changing if we were to get approval. It's just changing the label for the INR.
So from a launching standpoint, we've already got all of our commission plans and everything built out you can see what Onyx grew 24% in the first quarter without profit mitral.
So.
We don't really anticipate having to make any changes other than the launch plans and marketing plans and those kind of things.
Surgeon education, and those things are our commercial teams are well set their comp plans were well set.
And the product in many cases already on the shelf all we have to do is get the label change.
And then market from there so its a different launch than what you normally think of as you know.
Rolling out a new product off the assembly line versus it's literally on the shelf already.
Got it thank you.
And just one more.
Product, let's say I believe you said.
Supposed to be published I believe this weekend.
Thank you Anders.
Yes productivity is going to be presented at Ats in Los Angeles on Saturday afternoon out there at the at the Ats meeting by Bylaw Ascension.
The chief of cardiac and vascular at Cleveland clinic, So that'll be presented on a Saturday afternoon.
Okay, and I guess on a follow up on that publication details and I know you previously talked about a journal or any.
Any idea on timing on that or were still too far out.
Don't know that I do not have an update on the timing of that obviously that this is the presentation is the trigger for that so this is my first public data that's going to be out there on it so from there the publication will follow but.
As soon as we have an update on that we'll let people know.
Appreciate it that's all tomorrow. Thank you.
Sure.
Thanks James.
And our next question comes from Jeffrey Cohen from Ladenburg Thalmann go ahead.
Oh, Hey power nationally how are you.
Yeah.
So few questions for Marin.
Topline for the quarter. Congratulations can you talk about the.
The the G&A line, a little bit as far as some.
Some of those extra Theres 5 million noncash in the G&A line and then maybe from a large perspective talk a little bit about the commercial organization. This does seem like you're.
Ahead of or catching up with.
The growth on the top line as far as your increased trajectory does it feel like your your.
For the coming year, or two or theres going to be.
More gains on that front and as it relates to leverage.
Yes, I think I'll take the I'll take the second one is I wanted to actually take the G&A question.
As far as the channel goes I mean, our our channels. If you look around the world our channels are pretty well set in U S. We're not adding at this point Europe .
Europe is pretty well set we're not adding you know we've gone direct in a couple of countries, where we may have added a handful of people.
The real the expansion has been primarily in Asia.
And we're basically titrating that investment with the growth so.
For example, we when we get a product approval or multiple product approvals, then we'll potentially at a rep there but.
That's starting to kind of ask mature it out now and the the number of people we're bringing on there is less this year than last year. So we are starting to actually get leverage.
Out of both of those regions. So there, they're actually growing much faster than the investment we're making in those regions.
I think our channels are actually are in pretty good shape.
And we're going to start to see leverage.
As we push more product through those channels. It's what we've been talking about as we move into 'twenty, four and seeing that EBITDA job.
One of the one of the triggers for that is actually pushing more product through.
Our existing infrastructure. So it may be and then actually you can take the G&A question.
Yes, So G&A reported was a little over $50 million and as I stated, Jeff There was approximately $5 million included in that four.
Contingent consideration changes related to the Ah Cyrus acquisition in and that that is a a balance it changes every quarter and there are multiple factors that go into determining what the adjustment is there a discount rates their probabilities of success.
Says, there's time and and so it's.
Kind of difficult to.
Precisely predict what that's going to be on a quarterly basis, but this quarter. It happened to be close to $5 million. If you look at the remainder of the G&A about 25 million it was higher.
The prior year, but but there were some things that we did in the first quarter of this year that we have not been doing over the last couple of years. You know we had sales meetings. We were just some really large major medical conferences in person so.
Sure.
G&A expenses were elevated in the first quarter compared to where they were in previous first quarters and likely there probably a little higher than what theyre going to be for the remaining the remaining quarters of this year as well because we're not going to be.
Again, having sales meetings.
Throughout the year to that magnitude and although we will be continuing to goes to some medical conferences are probably not as heavy of the cadence as we had in the first quarter.
Okay I got it and then I know this previous question on on pricing, but I'm more curious on the margin front.
How does it feel out there as far as.
<unk> costs as far as labor transportation logistics et cetera.
Q1, our margin.
You feel pretty comfortable with for the balance of the year.
I think margins are going to be you won't take us from that.
Ed.
So margins you know we anticipate being.
Relatively flattish throughout the year, you know a lot of it is going to be.
And on.
How successful we are in.
Securing these price increases that <unk> talked about a little bit earlier, you know another thing that that dynamic that comes into play is.
Inflation was really high in the second half of last year and some of those layers of inventory are going to be selling through 2023, so you've got that offsetting dynamic, but taken all of that as a whole we think margins are going to be relatively flattish.
You know this year, especially compared to the prior year.
Okay, and then just one quick one if I may use nishu mini robot or CNN or heard of any robotic placements going on of any equipment or robotic testing of placements going on.
And we don't really we don't really pay much attention to be honest with you is not really in our field.
Okay got it thanks for taking my questions I appreciate it.
Thanks, Jeff.
Thank you again to ask a question on the phone at Star One. Our next question comes from Frank <unk> from Lake Street Capital Go ahead Frank.
Hey, Thanks for taking the questions and congrats on all the progress wanted to start with one on on X looks like growth continues to be really saw there could you just take us little little deeper into what the primary growth drivers are there that related to more competitive when the market just feel better out there and you're getting a little rebound from a choppy market.
In the last few years or is it something completely different.
I mean, onyx has grown double digits for the last.
It's growing at I think the CAGR over the last five years is 13, 14%.
So this is a this is a big jump a lot of it suddenly we grew double digits in every single market.
I think part of it is just the.
The data that keeps coming out on this valve is extremely strong.
Our our retro well trained.
And I think it's just it's become the valve of choice I mean is the market leading mechanical valve in the U S.
The only only valve that has a low INR. So I just think it's it's it's really taken hold kind of around the world.
And you just continue to see strong performance on it.
Yeah.
Okay, maybe one follow up directly to that I think obviously the stock price reflected peer panic when the data came out on them proactively.
Maybe there was some assumptions around the demand profile of the device.
When that occurred.
Occurs to me that that is not at all manifested in how the product is growing would you agree and do you think this continue to be a 20% plus grower maybe now.
Yes, when we guided in our back in our March.
Last year, we guided 10% to 15% growth for Onyx over the planning period up to drop through 2024.
And.
We are growing last year, we grew on X 13%.
And like I said, the CAGR has been right in that between 10 and 15% obviously it was higher in the first quarter.
There's a lot of international stuff there. So I mean, we're not going to like immediately jumped to.
Change the guidance on on X I think where we're comfortable with.
Growing 10% to 15%, but to me I mean, the the product any trial was a drug trial, we are changing the drug the drug failed right. So.
Had nothing to do with the valve.
It was basically eloquence can't protect the valve and that data will be presented on Saturday.
But the on X valve performs extremely well with.
With coming in at low INR, which we've shown in multiple studies in.
And I think that will give you because it gives people confidence but in the end that.
<unk> did have the problem the drug out the problem.
Okay.
Great. Good color one last one for me APAC and Latin America continue to outpace growth of the the rest of the organization looks good can you just maybe run through what you are looking at for 2023 is that.
Key catalysts or a regulatory approvals or investments that need to be made in that geography to maintain that growth profile.
So it's a pretty it's a pretty simple kind of algorithm we.
We get product approvals of our any of our portfolio and new markets. So far I was in Australia in the first quarter, we now have.
Our our frozen elephant trunk approved there the neo we've got our Thoracoabdominal system a crude there.
In a market we have never been in a were waiting for approval of our <unk>.
<unk> in Taiwan, right. So just as these approvals come through these are our existing products better just getting paperwork to get the regulatory approvals.
And in some cases, when we get enough critical mass we put feet on the street.
And as I mentioned earlier, we have over invested the growth rate or around the growth rate previously, but we're now backing that down through youre now going to start not only getting the good growth that youre going to get start getting leverage around.
Those regions, but it's a simple equation it's.
Gift product approvals and.
Add reps and it.
It works right. We said, we think that those regions can grow at 25% to 30%.
Through 2020 into 2024, and we've done that last year, we're doing it now so.
So I think the you know the playbook is working.
Hi, Thanks for taking the questions I'll stop there.
Thanks Ryan.
And that appears to be the last question at this time.
I would like to now turn it back to management for any closing remarks.
Yeah like I said, we were.
Pleased with the quarter and we feel like we've got momentum coming out of Q1.
You heard in my comments I just mentioned a few things that you heard my comments.
We've hired a big chunk of people in our manufacturing facility in Germany in the fourth quarter. They were trained in the first quarter and they are just now coming online. So we expect.
The supply to improve in that.
Growth significantly.
I talked about our pricing power with our proprietary some of our proprietary devices, which.
We think we can get meaningful price increases from starting kind of now so we haven't even seen that in the gross margin.
Pork lot, we've got an approvable letter.
You know from the FDA or just kind of waiting on the final inspection to get closed out.
Yes, it would be the first quarter, we've raised our guidance.
On the top and bottom line and we just need to execute keep doing more of the same and we feel like we're set up for.
Good 'twenty, three and we expect to enroll two PMA trials this year.
In the second half of the year. So things are moving forward and we're very bullish on on what's in front of us.
So thanks, everybody for joining in on the call.
Okay.
Thank you. This does conclude today's conference. We thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.
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Uh huh.
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