Q2 2023 Addus HomeCare Corporation Earnings Call
Speaker 1: Good day and welcome to the Addis Home Care second quarter 2023 earnings conference call.
All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch tone phone. After we withdraw your question, please press star then 2.
Please note this event is being recorded. I would now like to turn the conference over to Drew Anderson. Please go ahead.
Thank you. Good morning and welcome to the Addis Home Care Corporation second quarter 2023 earnings conference call. Today's call is being recorded.
To the extent any non-GAAP financial measure is discussed in today's call, you will also find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP by going to the company's website and reviewing yesterday's news relief.
This conference call may also contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding ADIS's expected quarterly and annual financial performance for 2023 or beyond. For this purpose, any statements made during this call that are not statements of historical
targets, plans, beliefs, expectations, and the like are intended to identify forward-looking statements.
You are hereby cautioned that these statements may be affected by important factors, among others, set forth in added filings with the Securities and Exchange Commission and in its second quarter, 2023, news release. Consequently, actual operations and results.
may differ materially from the results discussed in the forward-looking statements. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
I would now like to turn the call over to the company's Chairman and Chief Executive Officer, Mr. Dirk Allison. Please go ahead, sir.
Thank you, Drew. Good morning and welcome to our 2023 2nd quarter earnings call. With me today are Brian Pops, our chief financial officer, and Brad Bickham, our president and chief operating officer.
As we do on each of our earnings call, I'll begin with a few overall comments and then Brian will discuss the second quarter results in more detail.
Following our comments, the three of us would be happy to respond to any questions.
Before I turn the discussion to our results, I want to take a moment and update you on events related to the CMS proposed rule for Medicaid services.
As you know, in early May of this year, the Health and Human Service Department introduced a proposed rule titled Assuring Access to Medicaid Services. While we have previously stated our agreement with the goal of broadening coverage and expanding the caregiver workforce, we questioned the specific approach proposed and the target threshold concept for caregiver wages.
as there are inherent challenges in setting a one-size-fits-all minimum percentage.
This is due to the wide variance among state waiver programs, which directly impacts the administration burden required to provide home and community-capac services in individual states.
We also believe that many providers, especially small local providers and those operating in states with larger rural populations, may be unable to continue providing care due to the significant administrative burden and related costs required to provide quality, regulatory compliant home and community-based services.
These challenges, if not properly considered and addressed, may have the opposite effect intended by the proposed rule by inadvertently reducing access to services, particularly in rural areas.
We recently submitted our comment letter to this proposed Medicaid access rule.
We also participated in the development of comment letters from our various trade associations.
Overall, over 2,000 comments were submitted to CMS, including comments from 31 states.
From our review of the CMS database, comments related to the 80% threshold proposal were significantly opposed.
Many other comments shared observations consistent with ours, including the difficulty in implementing a one-size-fits-all approach.
the lack of evidence or data to support the 80% proposal, and the potential to negatively impact Medicaid Syr access.
States, including California, Oregon, and Washington, as well as the National Association of Medicaid Directors, expressed serious concerns or opposition to the 80 percent minimum threshold. Among the comments filed were letters from several law firms representing either providers
trade associations or states strongly asserting that Congress did not provide the Health and Human Services Department the legal authority to mandate this specific proposed 80% threshold rule on states.
And that's a setting of any national threshold based on a limited to no data is arbitrary and therefore invalid. All right.
These associations verbally express providers' collective concerns regarding the proposed rule and presented alternative approaches primarily focused on increasing Medicaid rates to help alleviate the workforce crisis. As of now, advocacy and education to Congress and others will continue. However, no close-up action will occur until CMS issues a final rule. Once a final rule is published, if it includes an 80% or similar threshold, we expect legal challenges to be initiated.
While we do not know the outcome of all of our actions, we are encouraged by the volume of comments from many diverse parties, the vast majority of which express significant concern with any minimum wage percentage threshold.
In summary, the volume and substance of the comment letters may have an impact on the final rule and the final rule that implemented is likely to be subject to legal challenge.
It is important to note and emphasize that there are many unknowns around the proposed rule and its long-term impact on our operations, even if it were to be implemented as proposed and withstand legal challenges.
In addition, we would explore operational changes to manage our business to minimize the potential impact of any final rule. The rule as proposed also does not cover parts of our personal care services. We currently estimate that over 20% of our existing PTS revenue would not be covered by the proposed rule. Now let me turn to the quarterly financial results.
Yesterday, we announced our results for the second quarter of 2023. These results indicated continued strong financial performance by Addis.
For the second quarter of 2023, our total revenue was $260 million, an increase of 9.7% compared to $236.9 million for the second quarter of 2022.
This revenue growth resulted in an adjusted earnings per share of $1.07 as compared to adjusted earnings per share for the second quarter of 2022.
91 cents an increase of 17.6 percent
Our adjusted EBITDA of $28.3 million was an increase of 12.7% over the second quarter of 2022.
During the second quarter of 2023, we continued to see strong cash flow from operations as our states and other payers have continued to pay in a timely manner. This strong cash flow, along with conservative management of our balance sheet, has been combined in the last mage of history and with anONEoniaC Copy mastering service to binary
has allowed us to maintain a net average position of less than one time suggested either thought continuing to give us financial flexibility, which should enable us to be opportunistic as we anticipate seeing additional transactions come to the market over the next few quarters. While our goal is to use our financial capacity to the far strategic operations.
that align with our overall growth strategy, we will continue to be diligent with the use of our capital. As has been the case over the last few quarters, the overall labor environment continues to improve.
During the second quarter of 2023, we continued to experience solid hiring in our personal care segment with 81 hires per business day. Our new candidate management and tracking system, which now has been fully implemented across all of our server-side.
has allowed us to better engage with potential employees shorting the time between application and hire by approximately 10 days. Finding ways to continue reducing the time frame between application and the first client visit is narrow we will continue to focus on to help us meet our growth targets. We will continue to focus on to help us meet our growth targets.
Hiring in our clinical segment continues to be more challenging than in our personal care segment, although we have seen modest improvements as compared to this time in 2022. While hiring in our clinical segment continues to improve overall, there are certain markets that have been more difficult.
and have impacted our growth rate in those markets. During the second quarter, we continued to utilize the funding we received from the American Rescue Plan Act, or ARPA. To date, we have received approximately 25 million, of which we still have 10.6 million remaining to use over the next few quarters.
As is prefesting mentions, these funds have been helpful with our recruitment and retention efforts to support patient care and should continue to help those efforts in the future as we deploy the remaining funds.
As for Illinois, our largest state of operation...
On April 1 of this year, we received an increase of $1.26 per hour.
As a result, our Illinois state reimbursement rate is now $26.92 per hour. This increase covers the July 1, 2023 minimum wage increase in Chicago and allows us to continue to raise wages for all of our Illinois caregivers. We are pleased to see strong support from the state as the most recent approval of the state's federal government has been made.
One additional issue I'd like to discuss is the rate decrease for home health that CMS recently released. When consumers take advantage of one another and Executive Officer recognize that an individual
We are very disappointed that CMS continues to propose rates for this important level of home care but does not take into consideration the increase in wages and expenses our industry has experienced.
While home health has only seen a proposed rate, hospice recently saw a slight improvement in the final rate for the coming year, so we are hopeful that the final home health rate, when published, will more appropriately reflect our increased cost.
However, we believe that these reimbursement pressures are likely to moderate over the next few years and as such, we will continue to look for acquisition opportunities that are strategic to our overall growth.
Now let me discuss our same store revenue growth for the second quarter of 2023.
For our person care segment, our same store revenue growth was 12.6% when compared to the second quarter of 2022.
During the second quarter of 2023, we saw personal care same store hours for business grow 3.8% over the same period in 2022 and 1.2% on a sequential quarter basis.
We are excited to see our various hiring and scheduling initiatives.
beginning to take hold and contribute to sequential hour growth over the past several quarters.
Turning to our clinical operations, our home health segment same store revenue decreased 10.9% over the same quarter in 2023-2022 as we continued to reduce admissions from payers that do not currently reimburse us adequate rates to cover our costs.
While we did see lower admissions primarily due to intentionally limiting admissions from these non-strategic MA plans,
Our gross margin improved, as did our mix of episodic volume and overall profitability.
While we have limited certain admissions due to contract rates, our managed care team continues to work with our Medicare Advantage and commercial payers to adjust our contract rates to a more appropriate level which will allow us to selectively accept more non-episodic volume going forward.
In addition to renegotiating rates, our operations team continues to work on improving both casemix and staffing in home health to ensure we maximize the value of the services we provide.
We remain excited about our home health operation as it complements our personal care services.
particularly where we participate in value-based contracting models.
Our hospice same store revenue decreased 1.1% when compared to the second quarter in 2022.
However, excluding the impact of sequestration, our hostas thanks to our revenue growth was basically flat year over year.
While our hospice segment is continuing to take longer to recover from the difficult period during and after the pandemic, it is encouraging to see sequential growth in our ABC as compared to the first quarter of 2023.
During the second quarter, we started to see an increasing length of stay from patients coming from skilled nursing facility referrals.
As of the end of the quarter, our hospice medium length of stay was 29 days exclusive of our journey care operation which historically has a higher proportion of short stay patients.
We believe this is a trend towards a more typical linkage stay from those referral sources primarily due to the expiration of certain provisions implemented as part of the Public Health Emergency Declaration which ended on May 11.
This morning we announced we closed on our Tennessee Quality Care acquisition, a provider of home health, hospice and private duty nursing services.
Tennessee Quality Care serves as an average daily census of approximately 1,800 patients through 17 locations covering a service area of over 50 counties in Tennessee and generating approximately $40 million in annualized revenue.
This is a very strategic acquisition for Addis as it allows us to offer all three levels of home-based care in an attractive market as well as being a significant of need state.
With this transaction, we will also be able to expand our home health and hospice services into nine additional counties as we look to add the noble locations in the future.
We are excited about the potential of this new operation and look forward to working with our new team members.
Over the past few quarters, we have discussed our strategic focus around potential acquisition opportunities in both personal care services and home health care.
With the announcement of the proposed Medicaid access rule from CMS, we have become far more selective in relation to potential acquisitions in the personal care service line.
While we continue to believe strongly in our strategy of pairing home health care and hospice with personal care services, we believe it is prudent to focus our PCS efforts primarily towards modifying this proposed rule.
However, we will remain open to development efforts in the PCS space if any highly strategic acquisition opportunities emerge.
As for our value-based care efforts, we are continuing to see positive initial results from our various contracts.
and hope to have outcome data to share by the end of the year.
While we are pleased with the current status of our value-based efforts, we are still in the early stages of our goal to have this segment grow into a more significant part of our long-term business.
However, we continue to see a great deal of interest from payers wanting to work with us on these types of arrangements.
We are continuing to invest in value-based strategies and related technology resources in 2023, which we believe will help give us an opportunity to accelerate our revenue growth in this part of our operation.
With the addition of our most recent acquisition of Tennessee Quality Care, we now have three states where we can offer all three levels of care.
We believe this coverage positions us well to continue to add value-based contracts in these markets.
As I say each quarter, I am so proud of our team for the care they are providing to our elderly and disabled consumers and patients.
There is no question that the majority of clients and patients want to receive care in the home.
which remains one of the safest and most cost-effective place to receive this care.
We believe the heightened awareness of the value of home-based care is favorable for our industry and will be a growth opportunity for our company.
We understand and appreciate that our operations and growth are dependent on our dedicated caregivers who work so incredibly hard providing outstanding care and support to our clients, patients, and their family.
Our personal care results reflect robust demand for our services and a savorable rate environment led by a very strong 12.6% year-over-year organic revenue growth for the quarter, well above our normal expected range of 3 to 5%. We are very pleased with the momentum in the core personal care segment with an 11.7% revenue increase for the year-to-date period over the prior year. As expected, we received our second statewide increase of the year in Illinois, our largest personal care market, on April 1st. This increase is in addition to our January 1st, 2023 increase in the state.
We expect to see further gradual improvement in our hospice business in the second half of this year, with the expiration of the public health emergency expected to lead to an increase in our skilled nursing facility hospice length of stay. The JourneyCare hospice operations, acquired effective February 2022, are included in our same-store revenues for the first time this quarter. Same-store revenue for our home health services declined 10.9% from the same period a year ago as we focused on appropriately balancing our mix of episodic versus non-episodic cases to improve profitability. We are continuing our efforts to negotiate more favorable rates with certain of our payers and have limited admissions under some agreements in the coming months.
Team will be focused on is working all those rights as they continue to work with the other players to just you know not just trying to get to episodic, but also let's try to get those per visit rates up to where we can start taking out more of those referrals and.
You need to have the good operating margins our improved operating margin that we currently are showing.
Okay. Thanks for that Brad and then just my follow up question would just be on.
Sort of taking the improvement that you've had in personal care up.
On the hours and sort of maybe sort of given us some visibility into how youre thinking about.
You know that continuing to trend out in the back half of the year.
Any seasonality that you would maybe want to.
Comment on.
And then separately I guess, just Brian maybe for you just on the Tennessee Act.
Acquisition.
Maybe just sort of I know you talked about.
Sort of starting to see some positive impact on margin that <unk> been more fully realizing that in the <unk>.
Any sort of I guess wanted quantification you could give us shot.
What the gross margin impact would be to sort of start out there.
From that that acquisition in the third quarter and Thats. It for me. Thanks.
Sure Scott I'll start with the BCS question first you know I think you know.
We've talked about the last couple of quarters to see nice sequential growth in.
In hours per business day in Q4 to Q1 was one 9% we saw that at 1.2% quarter over quarter. This year I think our expectation is going to be probably more similar to what we've seen in this last quarter. So you know around 1% maybe give or take.
Over Q3, Q4, theres not a lot of seasonality really in P. C. S. I think typically where we see impacts us more in the winter months, where maybe you have some service delivery issue user ships get cancelled et cetera, obviously, you're probably not going to see a lot of that in Q3, you might start to see some impact a little bit into the year as things get colder holidays et cetera, but it's gonna.
Pretty minimal so I wouldn't expect a lot of seasonality kind of in that trajectory.
And then on the Tennessee quality care, just a couple of metrics to give you guys. So I think we mentioned there are about $40 million in annualized revenue.
It's a scale business. So that gross margin profile is going to be in that mid to upper 40% range.
I think we've talked about it before the bottomline expectations EBITDA. So it would be in the mid teens as a percentage.
So one thing I would just advise on it as well with an acquisition that size, obviously, there's going to be some depreciation amortization that will come into play with the intangibles.
We are borrowing for this acquisition so with the most recent.
From the <unk> that are all in interest rate now is just a little over 7%.
So would also be thinking about that from an interest expense perspective, but those are probably some good metrics I think from a modeling perspective.
Very helpful. Okay. Thanks.
Yeah.
The next question comes from Dan Hendrix at RBC Capital markets. Please go ahead.
Hi, This is Mike Murray on for Ben can you give us a little bit more color on hospice same store ADC declined three 2% driven by lowered missions with higher length of stay of partial offset are you still seeing pressure from referral sources is there an increase in comp.
Tissue and some of your markets any color would be helpful.
Hey, Mike as Brad Yeah, we did see.
Kind of a drop on the admissions front, what was encouraging us to start seeing that median length of stay increase as Dirk pointed out in his comments.
Primarily in the nursing facility, which we had anticipated with the expiration of certain provisions in the public health emergency.
Frankly, we have kind of a slow may.
Second half of June and it's continued in July we've seen that.
Kind of a pick up in admission volume, which has forced bonded into AR increased ADC. So we did have sequential growth. So we saw some recovery from Q1 I anticipate that we'll continue to see a recovery into Q3 and into Q4 both on.
In admission standpoint, but more importantly on the ADC front.
Awesome. That's helpful. I'm, just switching gears, a little bit you've seen some nice operating leverage on G&A past two quarters, but it still remains around 21, 22% of revenue.
How do you think about this line item longer term do you think you could get it back to pre pandemic levels, which were you know call it 19% 20%.
Yes, Mike This is Brian I think we're continuing to see levers so as our top line continues to grow we definitely saw that from Q1 into Q2 with kind of a decline in that percentage so that would be our expectation. So a lot of those costs, particularly on the corporate side, our fixed will flex a little bit in the field on SG&A, but.
But that's probably going to move more slowly than our revenue growth. So yes, we would anticipate over time as we continue to see our top line growth that we're going to continue to get more leverage on G&A.
Alright, thank you.
The next question comes from Matt <unk> with William Blair. Please go ahead.
Hey, good morning.
Can you give us some metrics on hiring productivity I'd be curious to hear a little bit on the other side of that on the retention side.
The improvements you've seen and accurate technology tools that you can implement or evaluating to help drive that further.
Yeah. This is Brad.
So when you look at our personal care hiring and carve out a family caregiver. So you look at kind of your traditional caregivers, we have seen nice improvement on the turnover rates are probably about two to the tune of 64% roughly in Q1 of last year were down to 56% which is again.
Still ahead of industry standards.
I think some of the things that we're looking at that I think have helped us on the turnover is no one really working on caregiver engagement second making sure that they have the hours that they won't work because we're still probably one of the biggest reasons that a caregiver leaves us is because they're not getting sufficient hours. So theres been a lot of focus.
On our part.
To ascertain who wants more hours what the schedule is really looking at and putting some technology tools that help match that.
Additional hours, they're looking for with clients that are available so I think our.
Team has done a great job of putting together some very helpful tools will continuing to modify and work with those again I think speed to hire is important.
Now for me.
It's a really kind of maximize our floor rates, but.
Honestly is it's really about making sure people are getting the hours.
We actually do conduct.
Surveys with our caregivers. We've just recently completed a round of survey has got great response.
Half of our caregivers responded so you think about it.
But from <unk>.
<unk> thousand 14000, caregivers you you learn a lot, but again, it's kind of interesting as ours are working on that getting enough hours is probably one of their key things and that's what we're focused on.
Okay understood and then on M&A are you.
Hope to somebody at a side of it where you're focused.
Yes.
Well, Chris as hospice perspective, I'm curious more on the supply side. What you all are seeing given some of the reimbursement dynamics that might be affecting.
Central sellers' willingness to come to market.
As well as maybe just a general sense of your activity levels. Obviously, you just completed the Tennessee.
Deal, but maybe relative to historical what what youre seeing from an activity and pipeline perspective.
Hey, Matt This is Brian I think on the supply side I think we kind of mentioned in our comments. It's been slow I think there are some opportunities out there we're being pretty selective on the ones that we're looking out with some of the <unk>.
The rule and reimbursement overhang, so we're being cautious on that front, but I would also say the environment.
It has not does not kind of turn does not what I would call robust at this point, so but there are still opportunities for us to look at.
I think still from a priority standpoint, we still believe heavily in very skilled home health with our personal care, having hospice is an available alternative as well.
But it really comes down to more strategic markets and pricing opportunities I think probably are are driving us more today on what our opportunities are that we're going to pay more attention to and let me, let me add to what Bryan.
Bryan has said and that is you know.
We're facing challenges right now as you know.
Both.
Personal care and home health as it relates to either rule change proposed rule changes or a proposed rate reductions.
Long term, we don't believe those should affect our strategy.
We remain.
Completely focused on our growth of all three levels of care and markets that allow us to appropriately deal with value based care one of the things. We think these changes indicate is that you need to be larger as a company.
So when you sit across the table certainly from Medicare advantage payers, but you know others as needed.
Have something that they need and that is size and quality of operation and so while we are currently being more.
Focused hands.
On our strategic model as to what we will look at if something came up in either one of these segments of care that was extremely.
Strategic we're not going to let the proposed.
Rules out there affect us long term now whether or not it affects the price that's when I used to be seen I mean, certainly from our standpoint, we're going to negotiate if we can.
That there are these challenges out there, but we're still focused on the long term growth and profitability flattish.
Okay understood and then just quickly one more on the timeline for the Medicare rule I think in the past.
You had mentioned you cant get some update in the fall I don't know if based on the quantity.
Our comments and in the lessons that you can add if he ever.
Yes.
That might come.
That's probably still somewhat uncertain.
Yeah, well I think when you first with the proposed there was some.
A discussion around the fact that.
If you look historically some of these things could be.
Actually finalized within a few months of getting the final comments in.
I think at the last conference call and certainly as we've made visits through the last quarter. Since then our feeling is that that's probably shifted and won't be finalized until sometime in 2020 for especially if you think about it.
We're seeing so many comments and most of them are against the proposed change I think theres a lot of thought process that has to go in from the CMS perspective, so were expecting something probably more in line with the first part to meet our 2024.
Okay. Thank you.
As a reminder, if you would like to ask a question. Please press Star then one to be joined into the question queue.
The next question comes from Julian in countries with Bank of America. Please go ahead.
Hey, good morning, Thanks for taking the questions here so.
So I guess first on the Tennessee acquisition, you mentioned the fact that.
The situation and say hey, here's what.
You know you make steady state targets for <unk>.
Biobased contracting so when should we expect I guess.
For you guys to have a contract like that in the state was it maybe that the payer there was actually asking for you to add more services to kind of how you expect that.
You know that the situation in the state on that front, you know evolve with this acquisition now closed.
Yeah, I think on the value based I mean, some of the players that we work with outside of Tennessee are similar to the players that are in Tennessee now tends to be a different group.
The individuals that are overseeing those markets, but I think we will at least be able to have an introduction pretty easily to start having those discussions around value based.
I think that's something still that's something we'd probably jumping into and you know in three months, but maybe towards the back half of the integration that you know within the first 12 months, we'll probably be looking to get into a value based arrangement.
We'll start exploring those frankly now are engaging with payers to have some of those discussions as we work on some of the other rates.
With some of those managed care payers.
Great and and I, if I may also follow up on that.
The fact weighted this this as it comes with the my journey wherever Youre skiing home House.
So you are moving forward with acquisition despite that the rate cuts that are coming.
Our next year likely.
Right and there could be more cots going forward with a cool man.
So I guess as we think about this business of home health segment that is with this you know, let's say that the 2% Oh My God, it's finalized maybe a little bit better than proposed would you expect to be able to really but that you know on a same store basis, I guess with with these types of rate cuts.
Yes, I mean, I think you and I can talk about the root cause celebre kind of talk about our growth opportunities with this acquisition, but I think our audio home health is a small segment for us today the deals that we're looking at this one.
A prime example, we've taken those were potential rate cuts over the next couple of years into consideration with our kind of long term view of what we think our topline growth opportunity is there and we've modeled that in and that flows through obviously done a profitability for us and our expectation and that's what we utilized in our pricing conversations with these targets. So all part of our process.
And we're aware of kind of the environment and to take that into account I think for this one particularly under kind of mentioned there are opportunities to get into other county. So I think we see some some volume growth opportunities in the market, but I'll, let Brett talk a little bit about that yeah. So I think there certainly are some volume opportunities with some potential de novo's.
Based on kind of where they are I mean, they cover a large geography in Tennessee, I think there's some opportunities to move into some of the more urban markets.
They're primarily kind of more of a rural focused but also I think to Brian's point I mean home health is a relatively small segment for us.
Operational efficiencies that we gain by scaling up and so I think that really went into our calculus about doing this deal and about the opportunities.
Get some same store growth from a bottom line perspective, as well as top line.
I appreciate it thank you and if I may just a last question I guess my more strategic and I know this just came out yesterday by CMS and I announced a new voluntary demonstration I guess across all the states would have a focus on dementia patients and so I didn't know if something like that.
Would be of interest to <unk>.
Uh huh.
Junior from CMS talks about targeting dual eligible population, but at the same time to talk about this being opened two medical device why are they so I didn't know if this is sums.
Something that I guess you.
You know makes honest here, you know well positioned given the kind of presence in both you know Medicaid or Medicare home health.
Yeah, Joe This is Brad yeah, but very pleased with that announcement, it's certainly something that we're going to explore I think it really fits well into our strategy of having all three levels of care because it it has a skill component with the home health, but also as a personal care type component as well.
And frankly, it's good to see CMS recognized but that's probably the population that honestly has.
The lack of services or potential lack of services. You know those are individuals that they can need home health they can need personal care they maybe hospice.
But by the same token you know.
It helps so when you look at hospice you get a lot of criticism or somebody's on length of stay for you know.
For a long period of time and it's probably.
Primarily those neurological disorders, such as dementia and I think this is really trying to kind of fill some of that gap and some of the pressure you have been trying to take care of those individuals in the right place. So very pleased with it and certainly looking forward to exploring it.
Thanks Telecom thank you.
This concludes our question and answer session I would like to turn the conference back over to you Mr. Dirk Allison for any closing remarks.
Thank you operator, I want to thank each of you today for your interest in Madison for being a part of our call Hope you have a great week.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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