Q2 2023 Horizon Technology Finance Corporation Earnings Call
Greetings and welcome to Horizon Technology Finance Corporation second quarter 2023.
At this time all participants are in a listen only mode a brief.
A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference distress Dodge at all on your telephone keypad.
As a reminder, this conference is being recorded it is now my pleasure to introduce your host Megan Bacon.
The Investor Relations and marketing. Thank you Ms speaking you might begin.
Thank you and welcome to the Horizon Technology Finance Corporation second quarter 2023 conference call, representing the company today are Rob Pomeroy, Chairman and Chief Executive Officer, Jerry Michaud, President and Dantrolene, Chief Financial Officer, I would like to point out that the.
Q2 earnings press release and Form 10-Q are available on the company's website at Horizon Tech Finance Dot com.
Before we begin our formal remarks I need to remind everyone that during this conference call. The company will make certain forward looking statements, including statements with regards to the future performance of the company.
Words, such as believes expects anticipates intends or similar expressions are used to identify forward looking statements. These forward looking statements are subject to the inherent uncertainties in predicting future results and conditions.
Certain factors could cause actual results to differ on a material basis from those projected in these forward looking statements and some of these factors are detailed in the risk factor discussion in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K for the year ended December 31 2022.
The company undertakes no obligation to update or revise any forward looking statements, whether as a result of new information future events or otherwise.
At this time I would like to turn the call over to Rob Pomeroy.
Welcome everyone and thank you for your interest in horizon.
As we always do on our quarterly calls I will update you on our performance and our current overall operating environment.
Jerry will then discuss our business development efforts our portfolio of events in our markets and Dan will detail, our operating performance and financial condition. We will then take some questions.
Had a solid second quarter horizon, despite the quarter beginning with the fallout from the banking crisis, and the ongoing economic and credit concerns.
To that end, our advisor Horizon technology Finance management closely focused on the credit quality of our portfolio companies. While we also selectively originated new loans and increased our balance sheets investment capacity, we are navigating through a challenging period in the macroeconomic environment remains on.
Certain.
But we have built a resilient and expert team of professionals that positions us well to succeed long term in both maximizing the value of our current portfolio of investments as well as adding attractive new investments to our portfolio.
Turning to our specific results for the quarter, we generated net investment income of 54 cents per share well in excess of our declared distribution level due largely to higher interest rates on our floating rate debt investment portfolio as well as lower incentive fees earned by H T. F. L D.
Dan will further discuss the impact of incentive fees on NII in his remarks.
Based on our outlook and our undistributed spillover income of $1 two per share as of June 30th we declared monthly distributions of <unk> 11 per share through the end of 2023.
We once again achieved a portfolio yield of over 16% on our debt investments for the quarter at or near the top of the BDC industry.
We raised $44 million of equity from our follow on offering and from our at the market program.
Both at a premium to NAV.
The equity raises enabled us to increase our investment capacity and to reduce our net debt to equity ratio below our target of one two to one.
We also increased our investment capacity by successfully expanding both our Keybank and our New York life facilities by a combined $75 million.
Our proactive efforts have positioned us well to fund our current backlog and future originations as the environment improves.
Our portfolio at quarter end stood at $715 million, we finished the quarter with a committed and approved backlog of $159 million.
Providing us with a solid base of opportunities to thoughtfully grow our portfolio.
As a reminder, most of our funding commitments are subject to our company portfolio companies meeting certain key milestones.
Finally, we ended the quarter with a net asset value of $11.07 per share.
Due to the difficult capital raising environment for companies over the last few quarters, resulting in some companies being unable to access new capital to maintain operations. We wrote off three debt investments as well as marked down to fair value of other debt investments contributing to the 27 cents per share.
Reduction in NAV for the quarter.
However, with our close working relationships expertise and consistent support of our portfolio companies. We believe our overall credit profile profile improved during the quarter.
We will continue to closely manage our portfolio and we'll remain selective in originating new investments in the near term as we look through the economic and investing environment to stabilize we continue to believe our portfolio and backlog is positioned to generate strong NII in the second half of the year.
I'm also pleased to report the completion of the acquisition of our adviser H T. F M by Monroe capital on June 30th.
Our adviser maintains its entire team and will generally operate as it has with the added benefits of them enroll umbrella with monroe's fundraising abilities and platform H T. F. M will have the capability to compete and win larger investment opportunities, which will provide horizon with a larger and more diverse.
Oil of investments.
In summary, while the environment remains unpredictable our experienced and expert team is doing all the right things to steer us through the cycle, we will continue to execute our investment strategy.
A sharp focus on credit quality and seek to carefully grow the portfolio with high quality investments.
With that I will now turn the call over to Gerry and Dan to give you more details and color on our performance Jerry.
Thanks, Rob and good morning to everyone.
Given the ongoing macroeconomic banking in D. C headwinds in Q2, our portfolio size remained flat from the prior quarter at $750 million.
As of June 30 in the second quarter, we funded 11 debt investments totaling $50 million, including a $10 million debt investment to a new check portfolio company focused on security imaging and a $10 million debt investment to a new health care information portfolio company, providing AI enabled.
<unk> for dementia care, we expect to remain selective in originating debt investments in the near term given the environment. However, the top of our pipeline is beginning to reflect greater demand by companies that have raised fresh equity and are demonstrating growth. We believe we are well situated to compete for these.
<unk> have increased $44 million of equity through a follow on offering and our ATM in the quarter as well as expanding our borrowing capacity under our credit facilities in the quarter, our onboarding yield of 13, 6% during the quarter remain near our historic highs, reflecting the higher rate.
Environment in our markets as well as our discipline and structuring and pricing transactions, which we expect to produce strong and net investment income.
We experienced two loan prepayments, one refinanced loan and one marsh partial pay down during the quarter totaling $30 million, we expect prepayments to remain muted in the third quarter of 2023 compared to our historic levels, given the weak IPO and M&A markets are.
Our debt portfolio yield of 16, 3% for the second straight quarter is a further testament to the value of our floating interest rate structures in a rising interest rate environment. We again generated one of the highest debt portfolio yields in the BDC industry.
As of June 30, we held warrant and equity positions in 97 portfolio companies with a fair value of $31 million during the quarter, we received $1 5 million of warrant and equity related proceeds as we have consistently noted and as evidenced by these proceeds structuring investments with.
Warrants and equity rights as a key component of adventure that strategy and a potential generator of shareholder value.
In the second quarter, we closed $74 million in new loan commitments and approvals maintaining our selective approach to new opportunities and ended the quarter with a committed unapproved backlog of $159 million compared to $187 million at the end of the first quarter, we believe our committed backlog with most of our.
Funding commitments subject to our portfolio companies meeting certain key milestones provides a solid base to prudently grow our portfolio as we selectively add quality investments in new portfolio companies and the second half of 2023.
Along with a pre screen and underwriting process, which ensures we remain selective on new originations. We are working closely and creatively with all of our current portfolio companies to ensure they are able to navigate through the current market challenges, including the ability to raise additional capital for example, during the quarter we.
<unk> worked with our portfolio company <unk> Biosciences, a public biotech and its larger investors to ensure the company has the necessary financial resources to complete its phase Iia trial for its lead product through our efforts in collaboration in July the company's lead investor successfully.
We did a $25 million private placement and public equity in concert with the pipe horizon received a $5 million pay down on its outstanding $45 million alone and horizon converted 5 million of this loan to equity at the same price paid by the pipe investors not only get horizon prudently reduces.
Exposure, but it now has the potential for significant upside gains.
We believe this unique series of transactions is evidence of our ability to create innovative solutions in times of stress, which provide immediate credit relief for borrowers and the opportunity for additional value to our shareholders.
Preserving income generating assets.
As of June 30, 90% of our debt portfolio consisted of three and four rated debt investments step up from 86% as of March 31.
The number of two rated debt investments declined to four in the quarter. We had one one rated debt investment at the end of Q2 down from three in the last quarter. A one rated credit represents one 4% of our total debt portfolio.
Turning now to the venture capital environment. According to pitch book approximately 40 billion was invested in VC backed companies in the second quarter of 2023 as it returned towards pre pandemic EC activity levels.
While exciting investment opportunities continue to present themselves, we expect the investment environment to remain depressed for at least the near term.
The decrease in available equity capital for companies, while creating challenges also creates opportunities as companies and investors seek other capital, particularly debt capital to fill their capital needs. We believe venture lenders, especially public bdcs remain best positioned to fill this need especially with the void.
By the collapse in pullback of the venture banks in terms of VC Fund raising 21 billion was raised in the second quarter as the market remains on pace to record a six year low however, VC dry powder remains high due to sidelined investor capital, which should enable vcs to provide a level of <unk>.
Ongoing support for potential portfolio companies until improved exit markets emerge.
VC backed exit activity in a decade low due to the current economic environment and the closed IPO window.
Total exit value for the quarter was just $5 5 billion, mostly driven by acquisitions, while the IPO backlog continues to build given the uncertain environment. We expect VC backed exit activity remained mostly acquisition driven in the near term.
In terms of market conditions for new venture loan investments, we are seeing a return to the market of greater growth opportunity transactions that are well supported by their investors over the first two quarters of 2023, many opportunities with companies focused on balance sheet improvement and cost reduction given the continued.
<unk> environment horizon through at least the third and fourth quarters of 2023 expects to maintain a pragmatic and cautious approach to new investment opportunities, while preserving and improving the value and quality of its portfolio as the economic and investing environment stabilizes we.
I believe we have many opportunities to reaccelerate the growth of our portfolio through new high quality venture debt loans.
A key baseline for future prudent portfolio growth is our committed approved and awarded backlog, which as of today stands at $243 million and our advisors pipeline of new opportunities, which as of today stands at over $1 billion.
To sum up we remain focused on credit quality and providing our portfolio of companies with support and alternative solutions when necessary to ensure optimal outcomes for our portfolio as the environment stabilizes, we expect an increase in attractive quality companies looking for venture debt solutions, which.
<unk> will enable us to thoughtfully grow our portfolio, our committed backlog and our advisors pipeline in the meantime, based on the size of our portfolio and our current portfolio yield. We believe we remain well positioned to generate solid NII for our shareholders and additional long term shareholder value.
With that I will now turn the call over to Dan.
Thanks, Jerry and good morning, everyone. During the second quarter the yield generated from our debt investments once again produced NII at more than covered our distributions and.
In addition, we're very active in the quarter further strengthening our balance sheet, providing us with significant amount of additional capacity with which we can prudently make new investments.
During the quarter, we successfully completed a follow on offering raising $39 million in net proceeds. We also utilized our ATM program to successfully and Accretively raise an additional $5 million of capital.
In addition to our equity raises we expanded our keybank revolving credit facility by $25 million to $150 million and increase its accordion feature by $150 million to $300 million.
We also expanded our New York life credit facility by $50 million to a $100 million to $250 million.
We continue to believe our proactive and focused balance sheet management and keeps us well positioned to thoughtfully grow the loan portfolio and create additional shareholder value in the current environment and beyond.
As of June 30th we had $107 million in available liquidity, consisting of $50 million in cash and $57 million in funds available to be drawn under our existing credit facilities.
We currently have no outstanding balance under our $150 million Keybank credit facility and $177 million outstanding on our 250 million, New York life credit facility, leaving us with ample capacity to grow the portfolio.
Our debt to equity ratio stood at $1 191 as of June 30th and netting all cash on our balance sheet. Our leverage was 1.05 to one which is below our target leverage of one two to one.
Based on our cash position and our borrowing capacity on our credit facility or.
Our potential new investment capacity at June 30 was $274 million.
The second quarter, we earned total investment income of $28 million, an increase of 51% compared to the prior year period.
Interest income on investments increased primarily as a result of the higher average size of our debt investment portfolio for the quarter and increases in the variable interest rates on our debt investments.
Our debt investment portfolio on a net cost basis stood at $700 million as of June 30, a slight decrease from March 31 2023.
For the second quarter of 'twenty, three we achieved onboarding yields of 13, 6% compared to 14, 3% achieved in the first quarter.
Our loan portfolio yield was 16, 3% for the second quarter compared to 14, 2% for last year's second quarter.
Total expenses for the quarter were $11 9 million compared to $9 9 million in the second quarter of 2002.
Our interest expense increased to $7 2 million from $4 2 million in last year's second quarter due to an increase in the average borrowings and higher interest rates on our borrowings.
Our base management fee was $3 2 million up from $2 5 million in last year's second quarter due to an increase in the average size of our portfolio.
Our performance based incentive fee was <unk> 1 million down from $2 1 million for last year's second quarter.
Our performance based incentive fee was related to an incentive fee cap and deferral for the second quarter of 2023.
Net investment income for the second quarter of 2003 was 54 per share compared to <unk> 46 per share in the first quarter of 'twenty, three and 35 per share for the second quarter of 'twenty two.
The company's undistributed spillover income as of June 30 was $1 two per share.
We.
<unk> that our larger portfolio the increase in our portfolio as interest rates, along with our predictive pricing strategy will enable us to continue generating NII that covers our distributions.
As we've said previously we all experienced prepayments throughout the remainder of the year. However in todays environment, we still expect repayments to be below our historical levels.
To summarize our portfolio activities for the second quarter, new originations totaled $50 million, which were offset by $6 million in scheduled principal payments and $30 million in principal prepayments refinancings and partial pay downs.
We ended the quarter with a total investment portfolio at $715 million.
Given the macro environment, we expect to remain selective in the near term with respect to originations.
At June 30, the portfolio consisted of debt investments in 54 companies with agro fair value of $683 million and a portfolio.
Oh, a warrant equity and other investments and 99 companies with an aggregate value of $32 million.
Based upon our outlook for 2023, our board declared monthly distributions of <unk> 11 per share for October November and December 'twenty three.
We remain committed to providing our shareholders with distributions that are covered by our net investment income over time.
Our AAV as of June 30th was $11 seven per share compared to $11 31 as of March 31, 23, and $11 69 as of June 32002.
The 27% reduction in NAV on a quarterly basis was primarily due to our pay distributions and adjustments to fair value.
Partially offset by net investment income.
As we've consistently noted 100% of the outstanding principal balance of our debt investments bear interest at floating rates with coupons that are structured to increase as interest rates rise with interest rate floors.
As of today, 95% of our debt portfolio will benefit from additional increases in the prime rate.
This concludes our opening remarks, we'll be happy to take questions. You may have at this time.
Thank you.
Ill be conducting a question and answer session.
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One moment, please while we pull for questions.
Yeah.
First question comes from the line of price.
With <unk> Securities. Please go ahead.
Thanks, and good morning.
Wanted to ask about the portfolios internal ratings and then also about some of the realized activity in the second quarter and subsequent to the second quarter. So first on the internal ratings.
You highlighted in the prepared remarks that one and two rated credits.
Absolutely absolutely.
Members and then before rent four rated credit actually went up can you talk a little bit about kind of the dynamic.
It's driving at least the improvement.
Two four rated credits.
I'm, assuming the ones and twos kind of came down.
Primarily as you cleared out some of the.
Some of the I guess, the underperformers here in the quarter.
Yes. Good morning, this is Jerry.
Yes so.
Through the kind of chaos.
What happened with the banks and everything actually that were.
Some companies in our portfolio that have just been doing it.
Extremely well so it.
And we're able to continue their growth. They will continue we're able to continue to raise capital.
Otherwise very difficult market and so we.
We don't get to talk about our four rated credits very much I'm glad you actually brought it up but there were a few that.
Definitely.
Did quite well have done quite well through this period and so.
It's always nice as we go through our evaluation at the end of every quarter to be able to talk about those as well.
On the other end of the spectrum.
Raising capital in this market was extremely difficult, especially in the.
The early part of the second quarter, there was a lot of chaos around the banks.
What was happening with the banks company.
Companies looking to figure out where to put their deposits. They were also looking to figure out how to deal with an orphaned loans from a bank that they didn't know.
How to how to work with and so we saw a lot of opportunity on the new side of companies just wanting to refinance debt out of their banks.
The market basically said that is not really.
This is not really the time to be doing that and so.
Vcs and investors in the boards of these companies had to figure out other ways to finance.
Their businesses and it was quite chaotic at the beginning of the second quarter, but I would say that we have seen some stabilization companies are I think has gotten more rational about where they need to go to get their financing to keep the company's viable.
In some cases as we mentioned.
Companies that were severely underperforming.
Essentially our underperforming.
Not able to raise capital in this market.
So it's the market is very dynamic right now.
What I, what I I do like and what I can see a positive trend on is what we're seeing coming into the top of our pipeline now are much more rational opportunities where there is growth.
Our investors are have already put in very fresh capital.
And the runways are significantly expanded and they're in markets.
Right now, we're pretty exciting both on the healthcare side, the biotechnology side and.
And everybody's heard I'd.
You'd mentioned just about everything but.
There are some companies that have been.
Ahead of that market and are well financed and doing quite well. So we're seeing some stabilization. We don't think we're necessarily out of the.
Out of danger relative to.
Market's been still unstable relative to the IPO market.
And M&A market, but.
We are definitely feeling as we mentioned feeling better about our portfolio today than we were at the beginning of the second quarter and I think thats reflected in.
Some of the valuations and movement in our in our credit ratings.
Okay. That's helpful. Jerry.
Let's see in terms of some of the realizations in the second quarter you talk about.
Realizing losses on writing off three three investments look like interior define and secure transfusion left the portfolio assume that was the kind of the major source of the of the realized losses, just curious what the what the third write off was and then kind of a related question in terms of the July <unk>.
Activity.
Should we think about.
Realized losses coming through.
With.
The better place transaction that you noted in the press release.
Yes, so as you can see in our schedule of investments.
The change quarter over quarter, you did pick out the interior define in SCS.
There were two deals that we realized in the quarter and I'll just point out that.
They were one rated credit on non accrual and the fair value was marked at.
What we basically realized this quarter, so the NAV impact on that.
It was very minimal this quarter. The third deal is a private deal we don't necessarily name the name names but.
It was a deal basically with Terry was talking about not able to raise additional capital and <unk>.
Had a transaction on the table and that just fell through.
And then as far as July goes.
We don't give future guidance.
We can say we were working through each one of our companies in real time and do not have anything to report on better place specifically.
Or anything in the portfolio.
You'd expect to happen in the third quarter.
Okay.
Okay, well that's helpful. I appreciate it.
Thank you next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Please go ahead.
Alright.
Following the acquisition of the manager by Monroe capital.
Well first of all are you going to sort of co investing in Monroe with their family of funds.
So currently the plan really is to operate as we have been Christopher this is Rob.
And so our <unk>.
Activities are focused primarily on the public company Horizon <unk>.
I think over time, we will.
Be looking for opportunities to both raise additional separately managed accounts that will be dedicated to the horizon platform under Monroe as well as.
Look seek opportunities, where there might be an opportunity to co invest but initially we will be focused on the.
The same target.
Customers and transactions that we are today.
And then I guess as a follow up on that same vein on leverage.
Following the Monroe acquisition is the plan to take up your debt to equity target.
No as Rob mentioned, we are running the public company as normal.
So the target leverage will stay around the 1213 times.
Okay, and then final question.
If for the market in general are you seeing any banks effectively being able to step into the void created by the seizure of Silicon Valley Bank.
I think.
Too early to tell so the answer is the short answer would be no not particularly but I think it's too early to tell I think the banks that.
I have made some.
The bank did acquired FCB and some of the other banks that are hiring.
Venture Bank banking people, who are available in the marketplace.
There is some expectation that they plan on.
Doing something but we haven't seen any bank really come to the forefront and say Oh. This is going to be the next Silicon Valley Bank I don't think there is going to be indexed Silicon Valley Bank I think.
Whatever banks do who is going to be far more measured.
Just based on the reality of being a bank and being regulated and some of the things that probably.
FCB got a little bit over there.
A lot over their skis on.
So we have but we haven't seen that yet I don't think thats a settled market at all yet.
Okay. That's it for me thank you.
Thank you.
Thank you Bill.
Do we take the next question a reminder to all the participants that do my press Star one to ask a question next.
The next question comes from the line of Ryan Lynch with <unk>. Please go ahead.
Hey, good morning.
Just a question on IMG that obviously you had a write down this quarter I know that's in the process of of the bankruptcy process in Canada can you just talk about does that mark reflect what you guys expect to receive.
Out of that bankruptcy process or what is that that that markdown sort of reflect.
Yeah, I mean, just like anytime or valuing all of our assets at the end of the quarter, we're making our best estimate of what fair value is based on in a situation like this different probabilities of different outcomes and based on the information we have up through the day we file.
We go through that and come up with our calculations. So at this point in time, yes, that's our best fair value of what we expect the investment too.
To realize.
Okay.
And then can you just remind us obviously you guys made some some changes in the capital we got paid back out some equity in an envelope can you just remind us what are the.
The next Scotts is a public company. So this information is out there, but it would just be helpful. If you could kind of remind us what are the next big test results. So we're waiting for and what's your expectation or what are you. What are you hopeful to see out of that.
Okay. So youre talking about below that's a publicly traded biotechnology company.
We amended our loan in Q2.
In concert with a $25 million.
Type transaction that the company did.
<unk> repaid $5 million.
Of our $45 million alone, we also converted $5 million to equity.
At the exact same terms and price that the pipe investors invested in.
So the company has capital now.
For a period of time.
They're in the process of running a clinical trial to a trial for psoriasis drug too.
<unk> hundred 93 is the technical team.
And they expect based on based on public information.
They expect to have results of that in October .
Okay.
And then as far as your your equity.
Position that you guys have in there or is there any.
Lock up our time restriction of when you could sell that position, obviously based on where the stock prices right now there's a quite a substantial gain things.
And could you should go much higher if things work out well, but obviously that can also reverse.
Just don't go well so I'm just curious is there any sort of time restriction on that that that equity position you have and any thoughts is that are you going to be the thought there would be a long term holder.
Otherwise well.
The stock is restricted stock.
Now Ryan.
There is.
There will be.
The company is going to undertake to.
Get those stocks.
Congratulatory excuse me.
No.
That process will take place here in probably the next quarter.
And then we will evaluate.
As we always would any asset based on.
What opportunities present themselves. So we'll see what happens okay.
Okay got you that's helpful.
Quite a substantial gain on that you guys currently have on paper right now.
This is the last question I know you gave some commentary on the market.
Obviously, the overall venture market is down.
It's been down pretty meaningfully over.
Throughout 2023, I'm, just curious I'd love to give you a sentiment you guys are obviously operating in that marketplace every day.
Hum.
I know trends Havent changed much you mean capital Raisings down investments down exits are down.
You know in 2023, but have you seen any sort of meaningful or incremental shift in VC sentiment either positive or negative since the last time, we talked three months ago.
I would say that the one thing that has changed.
Basically you are basically correct. What you just said one of the things we have seen change is.
Vcs now are they're back to focusing on their portfolio.
Almost laser focused on each one of their portfolio companies and what the real needs are and what the real expectations are relative to.
Funding the company's until there is a better exit market and so the one thing I would say is we are seeing more creative.
But at the same time rational.
Financing transactions that are being contemplated these are things that can really get done.
We mentioned the Belo transaction, raising the $25 million, but we're also seeing some interesting kind of M&A and merger opportunities.
And other kinds of bridge financing and things like that.
<unk>.
It's not as chaotic as it was 90 days ago, they've kind of settled down they know what they need to do to support the portfolio companies. There are still companies that are going to find it challenging to raise capital in this market because there arent good exit markets and because valuations on.
Any company 2020 wanted to raise money in 2021, probably has a valuation that today wouldn't hold and so they have to figure out how to rationalize those valuations to make the companies look more attractive all of that is going on right now and so I can't sit here and say that.
Yeah.
The trends are all going in the right direction, but at least we're getting rational thought process and rational potential.
Solutions too.
And that requires us by the way and I mean, the venture debt market to also participate in helping these companies get through this kind of cycle into a better cycle.
The M&A market starts opening up more at the IPO market starts opening up more.
It will be interesting to see.
We firmly believe that the.
When the markets turn that the publicly traded biotech market when waste weight to the pendulum swung way too far in the wrong direction and so we do believe there's some real value to be got in those companies, where the valuations were just irrational.
I think at one point it was a $10 million valuation and they had $30 million of cash at one time.
So.
We think there's opportunity there but.
Theres still a lot of risk because of.
The market is not being open so there's still.
We sold a couple of quarters I think.
Challenging.
Direct markets, but it's also macroeconomic driven.
In a big way to.
Until we start seeing some.
Improvements overall on a macroeconomic basis.
<unk>.
It's going to be difficult for us.
They will still be challenging for the IPO markets in M&A markets.
Trying to work through the macro.
Economic situation so.
It's it's still going to be a challenging market for the next couple of quarters.
Okay. That's that's helpful update on on kind of your thoughts and sentiment on the environment right now that's all from me I appreciate the time today.
Thanks Ryan.
Okay.
Thank you.
There are no further questions at this time I would like to turn the floor back over to Robert Pomeroy, Chairman and CEO for closing comments.
Thank you all for joining us. This morning, we do appreciate your continued interest and support in Horizon, and we look forward to speaking with you again soon and this will conclude the call.
Okay.
Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
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