Q1 2024 Bioventus Inc Earnings Call
Good day and welcome to the bio Ventas first quarter 2024 earnings conference call.
All participants will be in listen only mode.
Should you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one on your telephone keypad.
To withdraw your question. Please press Star then two.
Please note this event is being recorded.
I would now like to hand, the call over to Dave Crawford Vice President of Investor Relations. Please go ahead.
David Crawford: Thanks, Andrea and good morning, everyone and thanks for joining us. It is my pleasure to welcome you to the Biobank, just 'twenty 'twenty four first quarter earnings conference call.
This morning, our rock playful, president and CEO, and Mark Singleton Senior Vice President and CFO.
David Crawford: I will begin his remarks with an update on our 2024 priorities in our business Mark will provide detail of our first quarter results and discuss our updated 2024 financial guidance, we will finish the call with Q&A.
David Crawford: A presentation for today's call is available on the investors section of our website <unk> Dot com before we begin I would like to remind everyone that our remarks today contain forward looking statements that are based on current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated including.
David Crawford: The risks and uncertainties described in the company's filings with the SEC, who didn't buy any <unk> risk factors in the company's Form 10-K for the year ended December 31, 2023, and as such factors may be updated from time to time in the company's other filings made with the Securities and Exchange Commission.
David Crawford: You are cautioned not to place undue reliance upon any forward looking statements, which speak only as of the date of may that they remain although it may voluntarily do so from time to time the company undertakes no commitment to update or revise the forward looking statements whether as a result of new information future events or otherwise, except as required by applicable securities laws.
David Crawford: This call will also include references to certain financial measures that are not calculated in accordance with U S generally accepted accounting principles or GAAP.
David Crawford: Generally refer to these non-GAAP or adjusted financial measures important disclosures about definitions and reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are.
David Crawford: Are available in the earnings press release on the Investor Relations portion of our website at <unk> Dot Com now I will turn the call over to Rob.
Rob: Thanks, Dave Good morning, everyone and thank you for joining our call. This morning, we're off to a very strong start to the year, our bio ventas team is driving significant improvements across our business.
Rob: During our last call I introduced the three priorities, we're focused on accelerating revenue growth improving profitability and enhancing our liquidity position.
Rob: To begin today by reviewing our progress.
Rob: With respect to our first priority accelerating revenue growth, we delivered 15% organic revenue growth in Q1, after removing the impact of our own divestiture.
Rob: Our team generated this strong performance through better strategic focus and disciplined execution of the plan that we established at the beginning of this year.
Speaker Change: Let me share a few of the highlights.
Speaker Change: Back to our HOA business the material impact from the reimbursement change is behind us and we delivered double digit growth in Q1, which was propelled by significant volume growth in Darling our single injection therapy.
Speaker Change: Early and now accounts for over two thirds of our total HSA revenue and we believe we have a platform for sustained growth with this clinically differentiated therapy for several reasons.
Speaker Change: First the market continues to shift from multi injection therapy as a single injection, which is why it's the fastest growing segment of the HLA market with projected annual growth in the mid single digits.
Speaker Change: Next the awareness and recognition of <unk> compelling clinical differentiation is spreading which is why more clinicians and patients are making it their preferred choice.
Speaker Change: The positive impact from this market growth and clinical differentiation is augmented by the fact that Biomarin. Just now has the most preferred payer coverage in the U S and the single injection market. Thanks to our team's successful contracting strategy.
Speaker Change: And so it's also has the largest fully dedicated H a commercial team in the U S M.
Speaker Change: And our team is doing a great job shifting their time and efforts to target larger accounts, which is producing early games.
Speaker Change: All of these volume growth drivers will be supported by continued sequential price increases that we expect will ramp up during the second half of this year.
Speaker Change: And we currently only have about a 25% market share in the single injection market, which further enables us to grow our HLA business well above market over the next few years.
Speaker Change: As a result of this powerful combination at our expectations for the remainder of the year, we anticipate ATCA revenue growths in 'twenty 'twenty four to be high single digits to double digits, which is an increase from what we previously shared.
Speaker Change: Regarding surgical solutions, we also accelerated to double digit growth across both ultrasonics and bone graft substitutes in the first quarter.
Speaker Change: Let's talk about ultrasonics first I.
Speaker Change: I'm encouraged by our progress with our Q1 performance, but even more excited about our long term potential with this business.
Speaker Change: Our unique technology provides surgeons with more control and versatility, while saving them valuable time, which is why we believe our technology can become the standard of care.
Speaker Change: Meanwhile, our bone graft substitutes team is strengthening our commercial execution with both existing and new distributors, which resulted in above market growth in Q1.
Speaker Change: As a result of our momentum with both ultrasonics and Bgs businesses, we now expect double digit growth across surgical solutions in 'twenty 'twenty four.
Speaker Change: And with respect to our international segment Q1 growth was below our expectations due to the timing of some are up some shipments.
Speaker Change: While the team is focused on driving more consistent quarterly results in the short term, we remain very optimistic regarding the long term growth potential of this business.
Speaker Change: And I'll tell you and Mark and I were in Europe, a few weeks ago to dive into the business collaborate with our team at our growth priorities meet with customers.
Speaker Change: And our visit confirm for us that our international business possesses significant untapped potential which is why we expect strong and sustainable double digit growth as we build out our international presence with a targeted focus on products and geographies that will generate the highest ROI.
Speaker Change: Now I'll shift to our second focus area boosting profitability.
Speaker Change: I'll start by highlighting that we have a very healthy here, leading gross margin in the mid seventies.
Speaker Change: The reason I mentioned this is because one of our first priority of accelerating revenue growth combined with the gross margin in the seventies.
Speaker Change: It paves the way for sustained increases in our EBITDA and operating margin.
Speaker Change: So as a result of our Q1 revenue acceleration at healthy gross margin.
Speaker Change: We drove over a 300 basis point increase in our adjusted EBITDA margin.
Speaker Change: And as mentioned during our last call revenue growth is not our only tool to improve our profitability.
Speaker Change: We will continuously explore areas, where we can reduce costs over the coming months and years to either invest in more productive initiatives with a higher ROI or to drop the savings to our bottom line to further accelerate our margin expansion.
Speaker Change: And now I'll turn to our third major focus area of improving our liquidity position.
Speaker Change: We reduced our net leverage ratio to below four times at the end of Q1 because of our increase in adjusted EBITDA.
Speaker Change: The reduction in net leverage to below four times was significantly ahead of our prior expectation of achieving this target by the end of 2024.
Speaker Change: We will stay focused on this priority as we expect to continue to steadily pay down our debt in the quarters ahead and we are.
Speaker Change: <unk> to reducing our net leverage ratio to around three times as we exit 2025.
Speaker Change: That concludes my update on our three priorities before turning it over to mark to dive deeper into our financials I want to emphasize that although we have significant work ahead of us.
Speaker Change: I'm excited about the excellent team work, that's taking place that's taking place across our organization to advance our business.
Mark: We are improving our fundamentals every single day in many areas ranging from better sales operations to enhance our customer experience to more discipline in supply chain and inventory management to support our growth and improve our future cash flow dispassionate and closely tracked resource reallocation based on.
Speaker Change: Our priorities.
Speaker Change: Moving forward in my leadership team and I will be laser focused on consistently delivering strong results quarter after quarter and Europe per year across each of our three priority areas.
Speaker Change: And as we continue to accelerate revenue growth boost our operating margin and generate increased free cash flow, we expect our valuation multiple to align with our peers.
Speaker Change: Which will translate into significant shareholder value creation.
Speaker Change: Now I'll turn the call over to Mark.
Mark: Thanks, Rob and good morning, everyone. Let me start by saying that I'm excited about the momentum exhibited throughout our business the robust execution by our commercial organization drove meaningful revenue and EBITDA growth. Meanwhile, our corporate teams maintainable progress on improving our processes.
Mark: We move forward, we look to consistently approach our business with a continuous improvement mindset to enhance our performance and drive further efficiency across bio ventas.
Mark: Now turning to our results for the quarter revenue of $129 million, representing growth of 9% compared to the prior year.
Mark: Both our H, a surgical solutions businesses performed better than our expectations.
Mark: Adjusting for the divestiture of our wound business organic revenue increased 15%.
Mark: In addition, adjusted EBITDA of $23 million increased $6 million and represented a 33% increase compared to the prior year. The increase was driven by higher revenue and improvement in our gross margin.
Mark: Adjusted gross margin of 76% increased 190 basis points compared to the prior year.
Mark: This was a result of favorable revenue mix.
Mark: Given strong growth from our higher margin H, a surgical solutions businesses.
Mark: The impact from the divestiture of the lower margin business.
Mark: Looking more closely at our revenue performance for the quarter across pain treatments revenue growth accelerated to 22%.
Mark: Prior to the prior year as we maintained our double digit volume growth, primarily driven by drilling.
Mark: As expected we saw a sequential increase of price and expect this trend to continue throughout the year.
Mark: As Rob mentioned, our strong execution is expected to drive growth above our earlier expectations for the year.
Mark: Surgical solutions revenue growth accelerated to 16% as both ultrasonics and bgs generated double digit growth.
Mark: With our recent growth acceleration in surgical solutions, we are monitoring our supply chain closely and despite some recent shortages. We currently do not anticipate it.
Mark: Meaningful impact in our projected growth.
Mark: Shifting to restorative therapies sales fell 16% driven by the impact of our wound business divestiture, which accounted for 19 percentage points of the decline on an organic basis restorative therapies increased three percentage points driven by extra gen through our efforts to improve sales force execution.
Mark: Processing reimbursement claims more efficiently.
Mark: Finally, our international segment grew 1% compared to the prior year and was even with the prior year when factoring again constant currency.
Mark: Growth was driven by <unk>, but was offset by the timing of shipments for ultrasonic except that you ended the quarter, but are now expected to be recognized in the remaining three quarters.
Mark: Moving down the income statement adjusted total operating expenses rose nearly $4 million compared to the prior year. The increase primarily resulted from an increase in sales commissions due to revenue growth and improved employee retention.
Mark: Which was partially offset by savings from our wound business divestiture.
Mark: Now turning to our bottom line financial metrics adjusted operating income increased 49% to $20 million from $14 million in the prior year, while our adjusted operating margin of 15, 5% advanced 410 basis points compared to 11, 4% in the prior year period.
Mark: Adjusted net income totaled $5 million and adjusted earnings per share or seven cents for the quarter. This compares to a loss of $16 million or a loss of 26 cents per share in the prior year. The increase in adjusted EPS was driven by increased profitability in the current year and the impact of a non.
Mark: Cash valuation allowance against deferred tax assets, resulting from the impairment of our divestiture divested wound business.
Mark: Now turning to the balance sheet and cash flow statements. We ended the quarter with $25 billion of cash on hand, and $391 million of debt outstanding.
Mark: We had $15 million drawn on our revolving credit facility at the end of the first quarter.
Mark: As Rob mentioned, we drove our net leverage ratio below or below four times at the end of the quarter and from a liquidity perspective, we remain well within compliance with our net leverage and interest coverage covenants with our expected reduction in debt an increase in EBITDA. In 2024, we are now focused on reducing our net leverage ratio.
Mark: To around three times as we exit 2025.
Mark: As planned operating cash flow represented an outflow of $6 million.
Mark: Due to the expected outflows related to employee annual bonus payments.
Mark: Most of our annual insurance cost and the timing of contractual inventory purchases. These three outflows totaled over $13 billion for the first quarter and are not expected to reoccur this year.
Mark: Absent these outflows operating cash flow would've been positive. Consequently, we expect cash from operations to accelerate in Q2.
Mark: Throughout the remainder of the year and our cash generation for 2024 is forecasted to be sufficient to meet the amortization requirements for our term loan.
Mark: Finally, given the accelerated momentum in our business and increased expectations, Let me update our 2024 financial guidance based on our team's solid execution of our business plan. We now expect net sales to be in the range of $535 million to $550 million.
Mark: This represents a 15 million dollar increase compared to our prior guidance of $520 million 535 billion.
Mark: For the year, we expect adjusted EBITDA to now be between $94 million at $99 million. This.
Mark: That's a $5 million increase compared to our prior guidance of 89 million to $94 million.
Mark: Finally, our guidance for adjusted earnings per share is now expected to be 25 to 33 six this represents a 13% increase compared to our prior guidance of 12 <unk> to 'twenty.
Mark: There are two factors driving the increase in EPS guidance.
Mark: First our increased expectations for higher EBITDA and second a reduction in our expectations for equity compensation for employees.
Mark: In closing our robust execution has generated a strong start to the year and we look to further enhance our revenue and adjusted EBITDA growth and driving improved cash flow through the remainder of the year.
Speaker Change: Operator, please open the line for questions.
Mark: Okay.
Speaker Change: We will now begin the question and answer session.
Speaker Change: I'll ask a question you May press Star then one on your telephone keypad.
Speaker Change: If you are using it.
Speaker Change: Speakerphone, please pick up your handset before pressing the keys.
Speaker Change: To withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble the roster.
Speaker Change: And our first question will come from Chase Becker Parker of Craig Hallum. Please go ahead.
Speaker Change: Good morning, guys. Congrats on the great results here first I just want to dig in a little bit on the segment strength.
Speaker Change: When I look at Asps in pain, particularly der Leyen, you improved sequentially, but kind of year over year, there was still a bit down at least as reported with CMS Dino financial Asp's differ from the price file can you just help us back out what was price in that year over year growth number versus what was volume because you know obviously seemingly it was a very impress.
Speaker Change: Ziv kind of volume quarter.
Speaker Change: Good morning Chase. Thanks for your question. So when we look at the volume growth on <unk>.
Speaker Change: Really strong strong growth in that shape mentioned the high.
Speaker Change: High double digits.
Speaker Change: Growth for that product and again just talk about our dedicated sales force that we have there that are really executing very very well, but we also know that markets moving to single injection, which as you know we had.
Speaker Change: In our favour given that we have clinical differentiation in that product.
Speaker Change: Really proud of what the teams there, but what we've accomplished we also when we look into the future we.
Speaker Change: This to continue throughout the year in 'twenty, four and anti <unk>.
Speaker Change: 25 from a CMS perspective, again had a slight increase in price and we expect that to continue.
Speaker Change: To increase again.
Speaker Change: Three two as well when the Windows are published in early June so as we've talked about we're focused on continuing to increase.
Speaker Change: The price sequentially throughout the year, that's our expectation for 24, so that price headwind that you're referring to you know it becomes less and less as we go throughout the year.
Speaker Change: Got it and then just to kind of help us understand kind of financial Asp's with you guys. I mean, when we talk about that kind of sequential kind of growth and in financial ESP from here is it you know kind of mid single digit kind of quarter over quarter or just I guess help us out there and then just specifically on Yeltsin have we kind of seen that kind of stabilized where we should see some.
Speaker Change: <unk> in the back half of the year to.
Speaker Change: Fully realizing it's now a smaller piece of the model.
Speaker Change: Yeah, Yeah, when you look at our.
Speaker Change: Q2 price that that we're in right now from Q1, <unk> increased about 6% Jolson increased about 1% when we look into the into Q3, we will see a smaller increase underlying I'd say in the 2% range from Q2 to Q3 and then when we look at Johnson as you just talked about that.
Speaker Change: Is gonna be.
Speaker Change: And double digit increase from Q2 to Q3, as we will start to see that price move up but I'll just remind you as it is I think that our growth is going to continue we don't see these price increases as a headwind to our growth.
Speaker Change: For all when we look at our contracts that we have inside of the contracts.
Speaker Change: These prices are absolutely <unk> goes up our prices increase but that the contracts and then we manage the price outside of those contracts with the sales team and we've been managing those somewhat separately from the CMS you know from our overall profitability growth and ensuring that we're pricing the products right to get that pull through that is.
Speaker Change: A big part of the success that we've seen you know one of the things in the first quarter, but the team executed that drove our growth was getting into the VA and again, making sure that we have a pricing strategy outside of the contracts and also inside the contraction or the CMS price comes into play is really mostly in the contractual.
Speaker Change: World that we live in.
Speaker Change: Got it that's helpful. Thanks, and then just maybe shifting gears to surgical.
Speaker Change: Really impressive kind of acceleration of growth there.
Speaker Change: Can you kind of tough to kind of what drove specifically around bgs in the quarter or was there anything from a supply perspective in the market. The kind of benefit did you guys or was this kind of true demand that you would expect to kind of hold on to through the year and then kind of along those lines.
Speaker Change: Think about kind of low double digit growth there that would imply kind of a little bit of a step down kind of through the year that just because we had a you know an easier compare in Q1.
Speaker Change: Hey, Jay This is Rob I'll start off and then Marc can feel free to chime in yeah. So that was true demand that was generated by our team during the quarter felt really good about the continuation of our strategy there to have dedicated focus on that business and we're seeing the impact from that.
Speaker Change: And then in terms of.
Speaker Change: Going forward, Yes, we were really optimistic about this business.
Speaker Change: It reflected by your comments on overall surgical solutions and you know.
Speaker Change: Just in terms of guidance, which can be measured in our approach on this make sure that we have line of sight into.
Speaker Change: The growth that we're generating from the initiatives that we're putting in place but feel good about it which is why we said the surgical solutions will drive that double digit growth for the rest of the year.
Speaker Change: It makes sense and then just lastly, mark when we look at gross margins kind of well ahead of our expectations.
Speaker Change: Now that we've got you know kind of surgical returning to growth pain, you know very healthy.
Speaker Change: Should we be modeling kind of mid seventies, adjusted gross margins kind of from here in the model or anything we should think about you know as we kind of go through the year here.
Speaker Change: Yeah, Jason Thanks for the question I guess why not just start being a Rob mentioned this in his script, but you know.
Speaker Change: Our gross margin, we do a lot of peer analysis I know you all do as well and you know what.
Speaker Change: We can hold our gross margin up to many of our peers whenever you do your peer analysis whatever your choices, we're always in either the leading company with the highest gross margin or you know in the top two or three so really good margin that we have and then if we continue to drive the growth that we're projecting in that we did in first quarter.
Speaker Change: With that high of a gross margin, that's really going to allow us to come through and drive a lot of leverage in the P&L again as we saw in the first quarter.
Speaker Change: We feel really good about our margin our industry, leading gross margin, but when we look from a year to year perspective, again, I think that we would look for that to be in the 74% range pretty much kind of flat from 2023 first quarter was a little bit higher than the 76 range really pretty much had like per.
Speaker Change: Big to optimal product mix and some of that will we get a little bit, but still being very strong you know again in the mid seventies.
Speaker Change: Mix some of it is very very competitive against the market and our peers.
Speaker Change: Impressive results guys congrats on the execution.
Speaker Change: Okay.
Speaker Change: The next question comes from Robbie Marcus of Jpmorgan. Please go ahead.
Robert Justin Marcus: Great all that kind of thing.
Robert Justin Marcus: For taking my questions and congrats on a very nice quarter.
Robert Justin Marcus: Two for me, maybe first now that all the reimbursement headwinds have lapped in the trade business.
Robert Justin Marcus: The underlying growth.
Robert Justin Marcus: You know what's your competitive.
Robert Justin Marcus: Sure.
Robert Justin Marcus: So over the past year.
Robert Justin Marcus: Our class.
Robert Justin Marcus: Kind of the revenues have been obscured thanks.
Speaker Change: Yes, Ravi you make sure I didn't hear your question are in line with breaking up a little bit, but you're really looking at the.
Speaker Change: You said the underlying growth and then the share that we have.
Speaker Change: Yeah.
Ravi: Yeah exactly.
Ravi: Yes, I think so if we look at our share over the last year, we really excel.
Ravi: We accelerated this year from a revenue perspective, but even more so from a unit perspective, so our gain in revenue that's been hasnt been quite as much as it has been in volume because of the CMS pricing headwinds that we have but would just say that those are behind us we have it well under control and understood and you know I haven't really detailed.
Ravi: The CS around.
Ravi: Our expectations of what the team does a great job of analyzing and understand that so you know we look at the revenue share.
Ravi: Exiting last year and into this year, we're looking at a 25% range roughly.
Ravi: So on some of the sources that we have we look at our underlying growth in the first quarter. We drove about 22% last year, we were slightly positive growth for the full year, but had a really strong fourth quarter growth.
Ravi: You look at our growth through the rest of the year on a J, we're really looking at the high single digits.
Ravi: Double digit growth going forward. So the headwinds just want to emphasize from a CMS and reimbursement is well behind us and we feel again really well positioned with our sales force we have the contract position in the market moving into thorough laying in a single single injection space and just great execution.
Ravi: Should that our salesforce continues to deliver quarter after quarter.
Speaker Change: Great and.
Speaker Change: One more you had very good expense control in the quarter you know after a couple of years of tight expense control, maybe just speak to.
Ravi: Employee turnover employee morale and the ability to keep.
Ravi: The expenses low because it was pretty impressive in the quarter. Thank you.
Ravi: Hey, Ravi this is rob thanks for joining I'll take that one first.
Rob: Yeah, we did have good expense control in the first quarter, but there is a much greater opportunity for us going forward. I mentioned this is a key lever that we can pull not just in <unk>.
Rob: Generating accelerated revenue and then that pivotal high gross margin that we have but then on top of that.
Rob: Reducing costs to either dropping to the bottom line or to invest in initiatives that have a higher ROI.
Rob: When we look at the first quarter one of the things that we're doing is is we're being really diligent and thoughtful about where do we want to spend in order to drive that high ROI. So some of the spend from the first quarter will shift into other quarters as we develop our strategic plan.
Rob: And determine what those best areas are so good expense control, but I'd say, even more opportunity going forward, even while were.
Rob: Considering investing in some areas to drive not just build the fundamentals of the company, but drive more transformational growth.
Speaker Change: Going forward, so thanks for calling that out.
Speaker Change: Yeah, just you know just to add to Rob's comments about you know were being very selective about whatever investments that we are going to make and making sure that we have a high return on an investment when we do make those rocks fraud or really good disciplined.
Speaker Change: Respective to the table and challenging the team on reallocating.
Speaker Change: Dollars to higher return and things like Manhattan, and things like that so.
Speaker Change: <unk>.
Speaker Change: We continued to improve our approach and disciplined around this and say.
Rob: We will continue to improve that as we go through the year.
Speaker Change: Thank you.
Speaker Change: The next question comes from Caitlin Cronin of Canaccord Genuity. Please go ahead.
Caitlin Cronin: Hey, Thanks for taking the questions and congrats on an impressive quarter.
Caitlin Cronin: Commercial execution is improving across the business could you provide some more color on how this momentum is building in for surgical solutions, specifically how are the distribution changes.
Caitlin Cronin: Okay.
Caitlin Cronin: Hey, Caitlin this is rob thanks for joining.
Rob: I think our commercial execution is coming along nicely I'd say overall the organization not just within surgical solutions put across.
Rob: Is responding really well to the opportunities that we have ahead of us.
Speaker Change: And where we saw this in the first quarter and I expect it to continue as much stronger strategic focus.
Speaker Change: And disciplined execution on the priorities that we've established.
Speaker Change: So thats.
Speaker Change: That's the key there in terms of that commercial focus.
Speaker Change: And execution improving.
Speaker Change: Again, we will continue to build on that.
Speaker Change: Through the rest of the year.
Speaker Change: And then the second part of the question I'm, sorry, and Caitlin was on surgical.
Caitlin Cronin: Yeah, just on the surgical solutions, specifically, how that you know the distribution changes you made last year, how does that continue into <unk>.
Caitlin Cronin: It should improve.
Caitlin Cronin: Yeah, Yeah, that's where it's working quite well and continuation of what we shared last time. So there's no by having that dedicated focus from a distribution standpoint, we're seeing.
Caitlin Cronin: More desk the disciplined execution, both on the ultrasonic side of the business and Bgs and that's reflected in the results that we shared as well as the guidance for the rest of the year. So I feel pretty good about that and we'll continue to build on it moving forward.
Speaker Change: Yeah, I'd just add when you look at the growth there back to Rob's comments.
Speaker Change: Did a lot of work, bringing net new distributors in the back half of the year.
Speaker Change: Last year and those are really starting to contribute in the first quarter and then we're getting better.
Speaker Change: <unk>.
Speaker Change: Pull through from our legacy distributors as well, so just emphasizing rubs points and definitely really good execution by that team in first quarter as well.
Interviewer: Awesome and then just on X gene congrats on the MTR.
Interviewer: It's updated expectations for <unk> O U S business going forward.
Interviewer: Oxygen is great business for US, we we have such brand our strong brand equity in this business when Mark and I are out in the field meeting with customers. It's inevitable that an enthusiastic clinician approaches us and tells us about the.
Interviewer: The phenomenal results that they've seen with patients and of.
Interviewer: Of course, it's one of our focus areas across the globe and securing.
Interviewer: Securing an MTR just allows us to build on that business in Europe. So feel good about.
Interviewer: Continuing to not just turn around that business that's been the focus in the past, but now.
Interviewer: Growing it into the future.
Speaker Change: Great. Thank you.
Speaker Change: Thank you.
Speaker Change: This concludes our question and answer session I'd like to turn the call back over to Rob Kay Paul for any closing remarks.
Speaker Change: Alright, thanks, everyone for your interest in Ventas.
Speaker Change: We drove a significant improvement across our business in Q1, and we look to build on our momentum with stronger execution as we focus on our mission on accelerating revenue growth profitability and cash flow and on creating shareholder value. Thanks for joining.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].