Q2 2023 Rockwell Medical Inc Earnings Call
Over to Heather Hunter Senior Vice President Chief Corporate Affairs Officer at Rockwell Medical Heather. Please go ahead.
Good morning, and thank you for joining us for this update on Rockwell Medical joining me on today's conference call or a doctor Marc Throwback Rockwell Medical's, President and Chief Executive Officer, and Paul Mcgarry, Rockwell Medicals, Senior Vice President of Finance and Chief Accounting Officer.
Before we begin I would like to remind you that this conference call will contain forward looking statements about Rockwell medical but then the meaning of the federal securities laws, including but not limited to the types of statements identified as forward looking in our annual report on Form 10-K, and our subsequent periodic reports filed with the SEC.
These statements are subject to risks and uncertainties that could cause actual results to differ.
Please note that these forward looking statements reflect our opinions and expectations only as of today, except as required by law, we specifically disclaim any obligation to update or revise these forward looking statements in light of new information or future events factors that could cause actual results or outcomes to differ materially from those.
Expressed in or implied by such forward looking statements are discussed in greater detail in our periodic reports filed with the SEC.
Rockwell Medicals quarterly report on Form 10-Q for the three months ended June 32023 was filed prior to this call and provide the full analysis of the company's business strategy as well as the Companys second quarter 2023 results, our Form 10-Q, and other reports filed with the SEC.
Along with today's press release, and a replay of today's conference call and webcast can be found on Rockwell Medical's website under the investors section now I would like to turn the conference call over to Rockwell Medical's, President and CEO , Dr remarks turn it back thank.
Thank you.
Good morning, and thank you for joining us today for Rockwell Medical's second quarter 2023 results conference call and webcast.
To get started I'd like to spend some time, reviewing our business strategy and capital structure, including greater detail about our recent acquisition of the bulk water technologies hemodialysis concentrates business and then we'll discuss our quarterly results and what investors can expect for the remainder of 2023.
It's been about a year since we began making changes to rockwell's business focus and strategy.
At the beginning of the third quarter 'twenty, two we set out the goal for Rockwell to unlock the value of its business in a way that would lead us to increase our revenue.
Reduce our expenses reduce and eventually eliminate our debt and drive our business to profitability.
We continue to believe that through the successful execution of this strategy, we will be able to drive shareholder value and reduce our reliance on the capital markets to operate our business.
This has been and remains our focus in just over a year, we have made significant progress against these objectives.
We've increased our net sales by 13% year over year.
We reduced our expenses by 60% year over year, we enhanced our gross margin from minus 5% in the first quarter of 'twenty, 2022% to 13% in the first quarter of 2023.
We lowered our debt by over 50% and we set a target to achieve profitability in 2024.
As you can see by our results, we are making significant progress against our strategic plan and we will continue to drive our business, even further over the coming months and quarters.
With the addition of the book with Hemodialysis concentrates business and the continued improvements we are making a rockwell we are accelerating our guidance on profitability and now believe that we can achieve profitability from our operations starting in the fourth quarter of 2023 and going forward.
Let me review why we believe that this update this path to profitability is achievable and why our strategy is proving to be on target.
Rockwell medical is a different company today than it was a year ago different management team different approach different market dynamics different strategy and different focus.
Today Rockwell is focused 100% on our hemodialysis concentrates business through which we generated nearly 100% of our net sales.
This is where we believe we can and will be successful.
As I described in our third quarter 2022 conference call. We believe that Rockwell medical has a robust business, which has been historically compromised by a number of factors, including but not limited to restrictive and disadvantageous contracts mounting expenses and competing priorities.
Since freeing ourselves from these limiting factors, we've begun to unlock the value for Rockwell shareholders.
Let's look at the changing dynamics of the hemodialysis concentrates market.
To date, the dialysis market has largely been comprised of in center dialysis clinics and hospital based dialysis providers.
Historically suppliers of concentrates to these providers have included Rockwell medical Fresenius Gambro Baxter <unk> now we've questioned others for several reasons. The number of hemodialysis concentrates manufacturers have significantly declined to essentially two major players Fresenius and Rockwell medical.
While the number of dialysis clinics in the U S has remained fairly stable.
And the demand for dialysis concentrates has historically grown at a steady state of approximately 3% annually, which mirrors growth in patient census of dialysis clinics.
Why dialysis clinics a reduction in patient census, during the pandemic Fresenius and Davita reported in their most recent earnings conference calls that patient census is again on the rise and is beginning to return to historical levels.
We expect this will potentially have a positive impact on our business with increased volume purchases and with new and existing customers.
Additionally, we have seen a rise in home dialysis treatments through the increased market adoption of our <unk> medical's at home Tableau hemodialysis system.
Early estimates suggest that over time, the at home dialysis and transitional care markets have the potential to address up to 80% of the total dialysis market.
We believe this is an important new segment and Rockwell is well positioned to address this expanding market.
We hope to have more to say about rockwell's efforts to address this growing home dialysis market in the coming quarters.
As we've stated previously rockwell's hemodialysis concentrates business was focused on supplying clinics throughout the northeast.
Midwest in the United States.
We believe there is a large market opportunity for us in the west if we successfully accessed the west it would enable us to increase our market share even further.
Over the last six months, we have made a number of great strides on that front.
We are now making select deliveries in the west to approximately 80 clinics from our manufacturing and distribution facility in Texas.
With the signing of our co promotion agreement with B Braun, we will be looking to add new customers in the west through their targeted sales effort.
Third with our acquisition of evoke was concentrates business. We now serve over 400 clinics in the west which represents a 400% increase over the number of clinics served prior to the acquisition and lastly, starting in September we will be setting up our first distribution center in Utah to distribute rockwell's products to the west.
As you can see we are beginning to make significant inroads in the west and we will look to enhance our presence even further as we grow this portion of our business.
So what does all of this collectively mean for Rockwell.
As the only one or two major players in the U S market. This allows rockwell to economically construct advantageous product purchase agreements that reflect the inherent value our products provide to patients.
This has enabled us to grow our gross margins from 3% in the first half of 'twenty two to approximately 10% in the first half of 'twenty three.
Currently our highest gross margin products are in the 50% to 60% range.
Our goal in the coming years is to drive our business to achieve consistent combined gross margins between 15% and 20%.
We realize however that there is a lot we have to do to achieve these margins.
Second we have been laser focused on the optimal product mix for our business over.
Over the last 12 months, 80% of our product volume has been dry powder products and 20% liquid we have established this makes sense, it's more cost effective to distribute dry products and liquid products, especially the larger 55 gallon drums.
We believe this product mix is economically optimal and we will continue to pursue a comparable ratio going forward.
Lastly, we are working to customize and configure our product offerings. So that we can take advantage of and support the rapid market adoption of at home dialysis treatments.
So what has prevented Rockwell from achieving these improved margins for hemodialysis concentration business historically.
As we've addressed previously in 2014 Rockwell effectively sold its U S and international business through an exclusive license to Baxter.
This agreement gave Baxter the ability to set prices on rockwell's products.
The prices Baxter established for Rockwell's products in many cases did not result in reasonable are sustainable profit margins for Rockwell.
Additionally, this agreement Disincentivize Rockwell for managing and lowering its cost to produce rockwell products, because any and all additional profit generated from savings would revert to Baxter.
It's no wonder Rockwell historically struggled to make meaningful margins on this business.
Rockwell has no control nor any ability to recuperate its margins based on the construct of this exclusive license agreement.
Last year, we purchased our business back from Baxter and terminated its agreement freeing ourselves from these restrictions.
What does this mean for Rockwell for the first time in nearly a decade, we were able to set prices that are favorable to Rockwell and generate improved gross margins. Our team has spent the last six months renegotiating product purchase agreements and working to convert the more than 700 customers over to rockwell's platform with updated pricing.
Over the same timeframe, we have signed new customer agreements supply agreements product purchase agreements and distribution agreements that right sized pricing on our products driving each towards improved margins for Rockwell.
We have a significant pipeline of multi year contracts that our commercial team is actively working to close we are already beginning to see the benefits of these enhancements.
One way to address gross margins and profitability to increase top line revenue, which we've done and continue to do an additional path to improve gross margins to adjust our expense line. As you know we get we began this process. Shortly after I joined Rockwell immediately eliminating expenses in areas that were not yielding value for the company.
At the end of the second quarter of 2023, continuing into the third quarter, we restructured operations and our South Carolina facility and consolidated a portion of our production into our Michigan and Texas facilities.
To accommodate the evoke by acquisition, we are further restructuring our operations.
We have significantly reduced expenses year over year and continue to find ways to eliminate additional expenditures.
We expect to realize the impact of these cost reductions over the coming quarters with the greatest reduction.
And expenses to be realized when we are able to move our product manufacturing to a more fully automated process.
This brings me now to rockwell's purchase of the hemodialysis concentrates business from <unk>.
At Rockwell, we are constantly evaluating ways to enhance our business grow our revenue and reduced costs associated with manufacturing our products. So that we can achieve profitability more quickly.
We look for opportunities that deliver economic and strategic benefits are immediately accretive and can be acquired at attractive valuations for Rockwell.
The bulk was hemodialysis concentrates business checked all of these boxes.
For over 20 years evoke was concentrates business through legacy brands, such as Marc or motivators in Cantel has service clinics and patients throughout the United States and is well known throughout the dialysis community.
Evoke manufactured and sold a similar portfolio of liquid and dry acid and bicarbonate concentrates. However, they did so to a significantly different customer base than rockwell's customer base. This represents an additional 1500 new clinics for Rockwell.
Additionally, evoke was business fits squarely into rockwell's core business and offers us a number of additional advantages.
One.
One of Rockwell's key business objectives has been to enhance our revenue through this acquisition, we gained approximately $18 million in annual net sales.
With the addition of evoke with concentrates business Rockwell increased its 2023 revenue guidance to between $82 million and $86 million.
This also has the potential to positively impact our revenue guidance for 2024.
Evoke was business is profitable and expected to achieve over $3 $3 million in annual EBITDA. We now expect with synergies this business to deliver between 2022% EBIT margin to Rockwell.
Third we are taking ownership of a fully automated manufacturing operation.
Why is this strategically important for Rockwell today, our manufacturing operations are significantly manual, whereas the vocal business is fully automated and currently only running at 50% capacity.
We believe that over time, we will be able to take advantage of these fully automated liquid and dry lines, thereby reducing the costs associated with manufacturing our products.
As I stated earlier the greatest opportunity at expense reduction for Rockwell is to fully automate our manufacturing processes.
Accessing evoke was operation will now let us take full advantage of that.
Fourth by acquiring the vocal concentrates business Rockwell is now the leading manufacturer and supplier of liquid bicarbonate products in the United States.
This carries with it strategic value and positions Rockwell with unique pricing options.
Finally, we purchased this business at an attractive valuation of less than one time sales and modest initial cash outlay for all of its strategic advantages.
Our daily activities have transitioned into actively integrating evoke with hemodialysis concentrates business into Rockwell.
We have assembled the transition team with representatives from every functional area from web from within Rockwell, who are actively interacting with their respective counterparts at evoke well.
Additionally, we have spoken to a number of key vocal customers and given our reputation for consistent production and delivery of products to dialysis clinics across the U S and internationally. They are all excited to have Rockwell as their primary supplier of concentrates.
Our teams are meeting daily with the goal to seamlessly transitioned 100% of the <unk> business into Rockwell by early October .
With this acquisition improved efficiencies and improved margins, we now anticipate that Rockwell will be profitable beginning in the fourth quarter of 2023 and going forward.
We are also actively in the marketplace looking at additional opportunities to expand this business into new product categories and into new geographies and we hope to be able to discuss this more in coming quarters.
Let's take a moment to review our capital structure and how we finance the <unk> transaction.
To give this financing some context, it's important to look back to May of 2022, when Rockwell medical completed two financings for a total of $30 million half of which came from Davita and the other half of which came from Armistice capital Master Fund.
Davita invested $15 million in Rockwell medical in the form of preferred equity.
This conversion price of $11 per share, which further illustrates to be discontinued support for Rockwell and our mutually beneficial and strategic partnership.
Armistice finance, the remaining $15 million in a registered direct offering in which Rockwell issued and sold the Armistice 844000 shares of common stock at $1 39 per share and pre funded warrants to purchase up to an aggregate of approximately $9 1 million shares of common stock.
These these pre funded warrants carried with him and ownership blocker of $9, 99%, meaning that pharmacist could never own more than 999% of rockwell's outstanding common stock.
Mediately after the exercise.
Over the last 12 months. These pre funded warrants have all been exercised the last the last of which was exercised in July 2023. These shares entered our pool of outstanding common shares, bringing our total common shares outstanding to $18 $5 million just prior to the acquisition.
As part of the financing transaction last May our missed this was also granted a warrant to purchase an additional $9 9 million shares at a strike price of $1 39 per share.
After armistice exercised all of their pre funded warrants. They subsequently notified us that they intended to exercise this additional warrant and purchased the additional $9 9 million shares which generated $13 88.
$13 8 million in proceeds for Rockwell and brought our total outstanding shares to approximately $28 5 million.
With the additional $13 8 million of cash in hand, we had a pivotal decision to make.
After evaluating a number of options, we chose to reinvest the $13 8 million to purchase evoke with hemodialysis concentrates business, which carries with it all the expected advantages. We previously described and an accelerated path to profitability.
The exercise of the Armistice warrant continues to improve our capital structure and removes the overhang on our cap table, while continuing to put Rockwell and increasingly more stable and stronger financial position.
As part of the transaction Rockwell provided armistice, a reload warrants to purchase $3 75 million shares at the closing price on July 10th which has a $5 13, which was the $5 13 per share.
Now instead of having $9 9 million shares underlying of underlying warrants with a strike price of $1 39, a share we have warrants to purchase $3 75 million shares at $5 13 per share outstanding, which if purchase would provide rockwell another $19 $2 million.
As it pertains to the potential for future financings as we've previously stated we do not need to raise additional monies to achieve profitability.
If we if we do pursue any future financings it would be used as growth capital not working capital. So that we can further accelerate the growth and development of our organization accelerate the paydown of our debt and put Rockwell in a better position to deliver value to shareholders.
I Hope this discussion provides better context as to how our business model works and the importance and transformational elements of this acquisition and further clarity regarding our capital structure.
Now, let's turn our discussion to our second quarter 2023 financial results.
Net sales for the three months ended June 32023 was $18 1 million compared to $19 7 million in the first quarter.
The decrease was primarily due to timing of revenue recognition.
The timing piece, we had over $1 million of orders made and shipped by the end of June 2023, However, when we use our subsidiary of Rockwell transportation to ship our products revenue isn't recognized until the product is delivered to the dialysis clinic.
In the second quarter 2023, while the $1 million of product shipped in June it wasn't delivered until July and will therefore be booked as revenue in the third quarter of 2023.
Secondly, we instituted a route optimization plan designed to reduce our distribution costs and our transportation group, which is also affecting timing of realized revenue.
Historically Rockwell received an order made the product and then would deliver the material to the clinic.
This means that trucks, we're always running but at times. The trucking route of the truckload was neither optimize nor our capacity.
Rockwell has recently employed a route optimizing software, which when applied across our three plants has the potential to reduce our number of deliveries by approximately 15% per month and still deliver the same amount of material that.
The plan, we've initiated it's taking time to work through our system, but we believe that these actions will begin to positively impact on our financials starting in the third quarter of 2023.
As we look to the remainder of the year here is what we expect.
With the addition of evoke was hemodialysis concentrates business, which we announced last month after evaluating the expected synergies between rockwell's into bulk was hemodialysis concentrates businesses and product lines. We believe that our net sales for the third quarter of 2023 will be between $21 million and 23 million.
<unk>.
Additionally, we have updated our 2023 guidance as follows we increased our 2023 revenue guidance from between $78 million $82 million to between $82 million $86 million.
We are increasing our gross profit guidance from 2023 from between $7 million and $9 million to between $8 million and $10 million.
And we are updating our guidance on profitability and now expect Rockwell to be profitable in the fourth quarter of 2023 and going forward.
I'd like to take a moment before I turn the call over to Paul to provide you with an update on our international partnerships for Triferic.
As we've discussed previously while Rockwell has several international partnerships with companies looking to develop and commercialize triferic in their respective countries. These international partnerships required no capital expenditure and very little operational resources from Rockwell.
While these partnerships have the potential to generate near and long term revenue for Rockwell there can be no assurance that they will and we have not factored this potential into our revenue forecast nor any of our projections for success.
We just learned from Wang Bank biopharmaceutical, our commercialization partner in China that the main efficacy results for its phase III clinical studies for Triferic, while safe failed to demonstrate efficacy when compared with placebo.
As a result, Wang bank will not be pursuing this program further towards registration.
We are currently working with Wang Bank to determine next steps. While this is not the outcome. We were looking for it continues to support rockwell's approach to de prioritize this program and exclude these international partnerships for Triferic from our guidance as they are no longer material to our overall success.
Overall, we are pleased with the financial performance of our business. So far in 2023 and remain focused on continuing to position Rockwell for future growth.
With that I will now turn the call over to Paul to provide you with our financial results for the second quarter call.
Thank you Mark.
Net sales for the six months ended June 32023, with $37 7 million, which represents an 8% increase over $38 million for the same period in 2022.
Overall product revenue for the six months ended June 32023 was $36 1 million compared to product revenue of $33 1 million and.
Three months ended June 32022.
An increase of 3 million.
Net sales in the two months since June 32023 were $18 1 million.
Compared to net sales of $19 7 million for three months.
March 31 2023.
And $18 7 million for the second quarter in 2022.
The difference between the first and second quarter 2023, net sales as a result of product revenue recognition pattern.
Excuse me.
Gross profit for the six months ended June 32023 was $3 6 million or 278% increase over $1 million in secured in 2022.
Gross profit increased by $2 6 million, primarily due to restructuring and supply contracts.
Working with new customers increased pricing to other customers in recognition of the remaining deferred revenue related to the termination of the Baxter distribution agreement.
Gross profit for the three months ended June 32023 was $1 million compared to gross profit of $2 6 million for three months ended March 31 2023.
$1 7 million for the second quarter of 2022.
The difference between the first and second quarter 2023 gross profit as a result of product revenue recognition timing.
For the six months ended June 32023, Russell's net loss was $5 1 million compared to $12 1 million for the same period in 2022.
For the three months ended June 32023, Rankles net loss was $3 $3 million or <unk> 18 per share compared with a net loss of $5 43 per share in 2022.
Cash and cash equivalents and investments available for sale at June 32023 was $14 9 million compared to cash and cash equivalents and investments to build scale.
$2 8 million at March 31, 2023, and $25 million at December 31, 2022.
On July 10, 2023, which was after the end of the second quarter of 2023.
Rockwell received gross proceeds of approximately $13 8 million in the.
The exercise of warrants.
The company used to fund the vocal hemodialysis concentrates business acquisition.
Rockwell acquired.
Substantially all the assets related to a voltage business manufacturing marketing and distributing and selling hemodialysis constitute products for $11 million upfront in cash was approximately $1 2 million estimated inventory amount.
Following the closing of the vehicle for transaction and taking into account the exercise warrants Rockwell had approximately $16 2 million in cash and cash equivalents and investments bill sale on a pro forma basis.
I will now turn the call back over to Mark.
Thank you Paul operator, please open the phone lines for any questions.
At this time, if you would like to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment.
Okay.
And our first question comes from the line of <unk> Patel from H C. Wainwright. Your line is open.
Hi, Mark Hi, Paul Thank you very much for the update on.
And I got a few questions regarding the acquisition and then a few questions regarding <unk>.
How is the integration of the latest acquisition going and have the sales effort being optimized.
Yes, thank you for that for the question.
The integration is going incredibly well.
<unk>.
<unk> has been a tremendous partner for us and.
And is working seamlessly with our transition team to to move the business over into the Rockwell platform.
We feel very good about the progress that the team has made and believe we'll be able to meet the objective of transitioning the entire business over to Rockwell by the middle of October .
We are now similarly, taking.
Our path to integrating the sales activity and so.
With that we are.
Loading all of our new customers into our systems.
So that we create a uniform.
Customer database for us to interact with.
<unk>.
Similarly, we're also undertaking.
A strategic evaluation as to how to optimize the utilization of that manufacturing facility.
Thats a process Thats also similarly underway.
As we look to move some of our manufacturing activities into that fully automated process.
Our goal is to be able to provide.
More of an update on our third quarter conference call as to the success of that transition and.
The savings that will see associated with that.
Got it got it.
And what do you think are the key marketing strategy, you expect to employ to expand the market for hemodialysis concentrates.
So for us.
<unk> being one of only two players in this marketplace.
For dialysis organizations that are seeking to purchase.
Hemodialysis concentrates really half one of two options to go to so for us.
From a marketing perspective, it's important that we continue to supply partners on a consistent basis, we continue to provide.
Provide the sort of the white glove customer service that that we provide all of our customers and that we continue to get positive feedback that day.
Appreciate it.
And this is one of the reasons why they select.
Rockwell, we need to be able to demonstrate that we have a an ability to continue to expand our distribution into the west.
We believe opening this first.
Distribution warehousing, Utah will certainly.
Expand that for US and then I think finally as I mentioned.
During the call.
Working to find products that will begin to satisfy the at home dialysis market will also be incredibly important for us.
And we're actively working on that as we speak.
Great. Thank you for that additional color.
We did or you had mentioned profit margins do you think there is room for meaningful I guess additional gross profit improvement in the hemodialysis concentrates business.
If so how do you think might this be achieved I know you've kind of mentioned the increasing revenue, but could it be through pricing increases manufacturing improvements are a combination of both and then how long do you think this might take to actually achieve.
Yes, so I think it's going to be a combination of frankly, all three of those and that process has already begun as I mentioned once we purchased our business back from Baxter.
<unk>.
We undertook a process to begin to renegotiate agreements with our existing customers.
Agreement new agreements in place with new customers all of that would have updated pricing that reflected the value that our products bring to patients.
We've similarly begun in the process of reducing expenses within the organization and now we will have the opportunity to begin to look to improve the way in which we manufacture our products through utilization of a more fully automated manufacturing platform all of those are.
Going to contribute to what we believe will be improved gross margins as you can tell we've already made improvements I think we reported 3% for the first half of 'twenty, 2% to 10% in the first half of 'twenty three we think theres more room to go.
And we're going to continue to drive our business to access that.
Great and then just several questions on twice that rate.
It sounded like you said you're going to prioritize.
When Ethan.
If and when this is applicable when do you expect to finalize the revamped clinical development paths of Triferic.
And at what point would you consider it most advisable for the company to deploy substantive resources into developing triferic in the U S is a prescription product and how large do you think that market opportunity is.
So shortly after I joined the company, we took the determination to de prioritize.
The existing commercial product in the U S.
And allow the existing international partnerships around Triferic to continue to progress.
As I mentioned, none of the none of our guidance or our future financial success is really <unk>.
Based off of those international partnerships.
They required no additional resource really from us so in a sense they were an opportunity to see whether we could secure any additional value off of Triferic I think what we're what we're seeing is that that opportunity.
<unk>.
Continues to be somewhat limited.
And therefore this strategic choice that we made.
Over a year ago to essentially de prioritized strikes, Eric I think it's sort of proving out.
On the FTC platform, which is the basis of Triferic, which.
Which we still have access to and could potentially develop further.
Into some of the indications in markets that we've discussed previously.
We've really put that on the on the shelf for now until we have the ability to generate positive cash flow for the company. So that we can use that to potentially reinvest into that program.
That's the that's the strategy that we've employed and I think.
Now that we're moving towards profitability.
More accelerated fashion.
We may have the opportunity to.
Begin to evaluate that sooner.
Similarly think because we are very active in the business development marketplace that there may be opportunities that we will.
Identifier that could be potentially equally or more attractive than.
Investing further in that particular technology, and so we will need to evaluate those.
But the way we look at it is.
We need to get to profitability first to provide us the foundation that will allow us to to grow.
Significantly bigger.
Okay, and then finally I have to ask this one.
What milestones could be achieved do you think in the next 12 to 18 months with Triferic outside the U S.
Rockwell's partners and would any of those trigger sizable payments to Rockwell.
Yes so.
Over the next 12 months.
Our commercial partner in Korea is going to continue to commercialize that.
<unk>.
That relationship carries with it royalties based on sales.
So I think that could be a we will continue to see how that product developed.
In addition, our partner dropdown in Turkey is in the process of.
Seeking to register Triferic in Turkey.
If it is successful in doing that there is royalties based on sales associated with that program.
And at this point.
All of the other.
Partners.
That we have established effectively the programs are on hold or are no longer being pursued.
So those are the opportunities that that we have going forward with respect to triferic, but as I said I mean.
As much as those offer potential lottery tickets for the company.
The core business is where we are focused and where we believe we will deliver profitability and will give us the platform to allow ourselves to expand even further so if those.
If those opportunities deliver value fantastic, but at the end of the day, they're not critical.
For us to be successful at Rockwell and for us to continue to grow this business well beyond where we've been.
Great certainly appreciate the details mark Thank you so much.
Thanks.
And again, if you would like to ask a question Press Star then the number one on your telephone keypad.
And there are no further questions at this time I will now turn the call back over to doctors drawback for some final closing remarks.
Thank you everyone for joining us on today's call before we conclude our call I would like to take a moment and say thank you to a few key members of the <unk> team who were instrumental in supporting Rockwell's acquisition of this hemodialysis concentrates business.
Doug Mcfarland and Beth Huddleston over my 20 year career I have completed many transactions and partnering with Doug and Beth to complete this acquisition has been one of the most productive experiences to date.
Their professionalism experience understanding and balanced makes them among the best in this business on behalf of the entire team at Rockwell I wanted to take a moment and thank them for their hard work to complete this transaction, we look forward to partnering with them through this transition and wish them continued success under their new structure with xylem.
We have accomplished a lot in the last year, but there is more work ahead for us while a lot of this discussion has been focused on top and Bottomline revenue profitability improved margins et cetera.
All of this is being done with the sole purpose of ensuring the longevity of our business to support clinics and the patients they serve for years to come.
Thank you to all of our employees for all their hard work and continued dedication and to our shareholders for their continued support.
Look forward to sharing our progress on future calls as we continue to work diligently to unlock the value of Rockwell.
This concludes today's conference call and webcast you may now disconnect.
Okay.