Q3 2024 Neuronetics Inc Earnings Call
Good day, and thank you for standing bar.
Welcome to the neural networks third quarter 2024 financial and operating results conference call. At this time all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session.
I ask a question. During this session you will need to press star one on one of your telephone you would be in here in the automated message advising your hand is raised to withdraw your question. Please press star one again please.
Please be about that today's conference is being recorded I would now like to hand, the conference over to your first speaker today Mark Klossner.
Mark Klossner: Please go ahead.
Mark Klossner: Good morning, and thank you for joining us for the neuro networks third quarter 2024 conference call.
Joining me on today's call are <unk>, President and Chief Executive Officer, Keith Sullivan, and Chief Financial Officer, Steve Furlong.
Mark Klossner: Before we begin I would like to caution listeners that certain information discussed by management. During this conference call will include forward looking statements covered under the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995 <unk>.
Mark Klossner: Including statements related to our business strategy financial and revenue guidance, the Green Brook acquisition and other operational issues and metrics.
Mark Klossner: Results can differ materially from those stated or implied by these forward looking statements due to risks and uncertainties associated with the company's business.
Mark Klossner: For a discussion of risks and uncertainties associated with narrow networks business I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-Q, which was filed earlier today.
The company disclaims any obligation to update any forward looking statements made during the course of this call except as required by law.
Mark Klossner: During the call, we'll also discuss certain information on a non-GAAP basis, including EBITDA.
Mark Klossner: Management believes that non-GAAP financial information taken in conjunction with U S. GAAP financial measures provide useful information for both management and investors by excluding certain noncash and other expenses that are not indicative of trends in our operating results.
Mark Klossner: Management uses non-GAAP financial measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions.
Mark Klossner: Conciliations between U S GAAP and non-GAAP results are presented in the tables accompanying our press release, which can be viewed on our website.
Speaker Change: With that it's my pleasure to turn the call over to narrow networks, President and Chief Executive Officer, Keith Sullivan.
Mark Klossner: Mark Thanks for the introduction.
Keith Sullivan: Everyone and thank you for joining us today.
Keith Sullivan: I'll begin by providing an overview of our recent performance and discuss the status of the green brick acquisition.
Keith Sullivan: Steve will then review our financial results and I'll conclude with some thoughts on the balance of 2024 before turning to Q&A.
Keith Sullivan: Let me start with our performance in the quarter total revenue was $18 5 million an increase of 4% over the third quarter of 2023.
Keith Sullivan: Neurostar system revenue was $4 1 million.
Keith Sullivan: During the quarter, we shipped 49 systems.
Keith Sullivan: U S treatment session revenue was $13 3 million, which represents a 2% increase compared to the third quarter of 2023 I'd.
I'd like to turn to our acquisition of Greenbrier Pms last week, our shareholders approved the transaction, which we expect to close during the fourth quarter. We are incredibly excited about what this means for our organization the employees of the combined company our patients and customers.
Keith Sullivan: <unk> as well as our shareholders today, we are laser focused on driving the long term success of the combined company.
Keith Sullivan: As we work together to integrate and optimize the new narrow networks, we have a comprehensive proactive approach that focuses on three key areas to increase shareholder value.
Keith Sullivan: Operating expense reduction.
Keith Sullivan: Operational efficiencies and profitable revenue growth.
Keith Sullivan: Starting with Opex control.
Keith Sullivan: When we announced the transaction, we estimated synergies to be approximately $15 million.
Keith Sullivan: As we dug deeper into both our in Green Brooks operation, we have identified an incremental $5 million, bringing the new cost synergy target to approximately $20 million.
Keith Sullivan: We have taken definitive action to take cost out that will benefit both businesses.
Keith Sullivan: On November eight we implemented a strategic reorganization of narrow networks streamlining departments to support our combined business model and reducing cost of programs that no longer align with our go forward strategy.
Keith Sullivan: This reorganization alone will generate approximately $3 5 million in annualized expense reduction.
Keith Sullivan: With the remaining $16 5 million in annualized synergies to be realized throughout 2024 and 2025.
Keith Sullivan: These synergies include a $6 million reduction in combined marketing spend along with additional savings from consolidating back office functions.
Keith Sullivan: Turning to the operational efficiencies.
Keith Sullivan: Our operational efficiency initiatives are centered on optimizing our commercial organization, including our commercial team structure.
Keith Sullivan: The way, we target customers and patients and how we train our employees.
Keith Sullivan: We are beginning with a reinvigorated focus on driving improved productivity across both greenfield sites and our existing customers.
Keith Sullivan: To support this we are in the process of introducing a more efficient data driven approach to help increase patient flow into Green Brook, and our other neurostar sites.
Keith Sullivan: We have done an analysis of physician prescription trends in our key markets.
Keith Sullivan: Which has allowed us to identify psychiatrist and other providers, who are currently treating patients for depression.
Keith Sullivan: Or other mental health disorders within a 10 mile radius of a Green Brook <unk> Star site using this information field personnel will be able for the first time to actively target providers, who have patients who qualify for Tms or Nevada.
Keith Sullivan: We will then be able to help institute a process for rapidly directing those patients who are seeking an alternative to anti depressants into a greenbrier or a neurostar site.
Keith Sullivan: We expect that this will allow us to be significantly more efficient and driving patient volume versus traditional broad based marketing efforts.
Keith Sullivan: Another benefit if this data is that it allows us to more effectively allocate resources to territories and to enhance our efforts to reach the greatest number of patients and rationalize coverage areas.
Keith Sullivan: However, simply identifying potential patient referrals isn't enough to improve site productivity.
We need to put best practices in place to allow our field personnel to educate providers on connecting patients with a green brook or other neurostar site.
Keith Sullivan: What we know from our study of patient experience is there is a significant drop off in patients continuing into Tms therapy. If they are not contacted almost immediately after expressing interest in the treatment.
Keith Sullivan: We are in the process of developing a comprehensive training program for our field personnel, which ensures that providers, who are looking for an alternative to <unk>.
Keith Sullivan: Traditional pharmaceutical options for their patients are fully educated on our offerings and how they fit with a patient care continuum.
Keith Sullivan: Under this new process patients who qualify for one of those services will be immediately contacted by one of our providers to begin the process of exploring the next step in their treatment paradigm.
Keith Sullivan: To complement this we are also developing a training protocol for our field personnel related to managing the patient care continuum.
Keith Sullivan: This ensures that greenberg sites as well as our other neurostar customers are well versed on how to help patients move onto the next step in their treatment.
Keith Sullivan: This includes the progression from traditional medical therapy to the most appropriate next therapy, whether its tms or provide out and if they do not achieve the desired result, continuing onto the therapy. They have not yet tried.
Keith Sullivan: While we had been working with Green broke over the last few quarters to operationalize key tenets of our better meet provider program.
Keith Sullivan: We are scheduling comprehensive training in November at Neurostar University to ensure consistent implementation of our new commercial structure and priorities. This includes establishing a patient review process to ensure optimal treatment outcomes across our network.
Keith Sullivan: Beyond cost and operational efficiencies. We are also focused on driving revenue growth.
Keith Sullivan: We are aggressively optimizing and expanding the ability to offer provider into all appropriate greenberg clinics and implementing the buy and build program across all sites that offers our motto treatment.
There are currently 83 green Brookside utilizing provider.
Keith Sullivan: And we are planning to expand to all facilities in 2025.
Keith Sullivan: To maximize the revenue potential of our provider program, we are implementing a buy and bill model across all treatment sites.
Keith Sullivan: Under this model green brick directly purchases and maintains drug inventory at each practice location.
Keith Sullivan: Green brick then builds the patient insurance provider for both the drug itself as well as the administration and observation services.
Keith Sullivan: While this requires managing medication inventory it results in a higher overall reimbursement compared to billing for administration services.
Keith Sullivan: This enhanced reimbursement structure creates an additional revenue stream alongside our Tms treatments.
Keith Sullivan: As previously outlined one of the key benefits of this transaction is that our scale allows us to provide broader service offerings to all of our customers first.
First we can leverage our combined network of approximately 400 customer sites across screen, Brooke and BMP customers to negotiate favorable regional and national payer contracts.
Keith Sullivan: Negotiating a block of contracts at watts offers efficiencies to the payer, while potentially leading to better reimbursement rates and improve Tms economics, ultimately increasing practice profitability for our customers.
Keith Sullivan: These benefits also extend to medical management and provider services, making.
Keith Sullivan: Making it easier for customers to expand their practice offering.
Keith Sullivan: Secondly, we will also be able to offer more robust support in navigating the complex landscape of insurance reimbursement by providing billing services to our customers, which could speed up payment processing and reduce denied claims.
Keith Sullivan: Finally, we are also working to provide neurostar customer access to green bricks existing call Center.
Keith Sullivan: By leveraging our centralized call center operation, we can help manage patient calls and education more efficiently potentially increasing conversion rates and reducing the administrative burden required to meet the demand for Tms.
Keith Sullivan: As we move forward, we are focused on two main goals.
Keith Sullivan: Advancing mental health treatment and increasing shareholder value.
Keith Sullivan: Through disciplined execution of our cost controls operational improvements and revenue growth initiatives, we have a clear path to profitability, while expanding access to critical mental health treatments.
Keith Sullivan: The Green Brook combination represents a transformative step in this journey.
And based on what we have learned since announcing the transaction. We now believe that the combined organization will achieve cash flow breakeven by the third quarter of 2025.
Keith Sullivan: And we're confident in our ability to deliver meaningful care for our patients and true value to our shareholders.
Steve: With that I'd like to turn the call over to Steve.
Steve: Thank you Keith unless otherwise noted our performance comparisons are being made for the third quarter of 2024.
Steve: The third quarter of 2023.
Steve: Total revenue was $18 5 million.
Steve: An increase of 4% over prior year revenue of $17 9 million.
Steve: Primarily driven by increased capital sales in the quarter.
Steve: U S. Neurostar advanced therapy system revenue was $4 1 million and we shipped 49 systems in the quarter.
Steve: U S treatment session revenue was $13 8 million.
Steve: An increase of 2% year over year.
Steve: Revenue per active site with approximately $11400 in the quarter.
Steve: <unk> to approximately $11900 in the prior year quarter.
Steve: Gross margin was 75, 6% compared to 65, 8% in the prior year quarter.
Steve: Up 980 basis points from the prior year.
Steve: The increase in gross margin was a result of the change in product mix.
Steve: The absence of a one time manufacturing costs related to our new contract manufacturer and an inventory impairment charge in 2023.
Steve: Operating expenses during the quarter were $21 7 million, an increase of $1 million or 5% compared to $26 million in the third quarter of 2023.
Steve: The increase was primarily due to transaction expenses, which were incurred prior to the transaction closing.
Steve: During the quarter, we incurred approximately $1 $4 million of noncash stock based compensation expense.
Steve: Net loss for the third quarter was $13 $3 million or <unk> 44 per share as compared to a net loss of $9 4 million or <unk> 33 per share in the prior year quarter.
Steve: As of September 32024, cash and cash equivalents were $20 9 million.
Steve: Now turning to guidance for.
Steve: For the fourth quarter, we expect Standalone revenue of $19 billion to $20 million.
Steve: We now expect full year Standalone revenue in the range of $71 million.
Steve: The $72 million.
Steve: We expect.
Total stand alone operating expenses for the full year to be in the range of $81 million to $82 million.
Steve: Which excludes approximately $2 million of pre close transaction expenses.
Speaker Change: I would now like to turn the call back over to Keith.
Keith Sullivan: Thank you Steve.
Keith Sullivan: Let me leave you with some key thoughts on our path forward integration is at the center of everything we're focused on right now.
Keith Sullivan: The combination of our organizations presents immediate opportunities from unified commercial teams to streamlined operations, but more importantly, it creates a platform for sustainable long term growth.
Keith Sullivan: Our progress in the first phase of integration planning has exceeded our initial expectations, particularly in identifying and capturing initial synergy.
Keith Sullivan: Looking ahead to 2025, we have a clear line of sight to cash flow breakeven by the third quarter. This milestone reflects both our integration execution and our ability to drive meaningful growth through our expanded capabilities and footprint.
Keith Sullivan: I'm, particularly encouraged by how our teams have worked together since the acquisition announcement.
Keith Sullivan: Collaborative spirit and shared commitment to our mission are evident in the early wins, we're seeing across the organization.
Keith Sullivan: We look forward to updating you on our milestones and overall progress in the coming quarters as we work to transform both our business and patient care.
Speaker Change: With that I'd like to open the line for questions.
Speaker Change: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question. During this session you will need to press star one one on your telephone and wait for your name to be announced to.
Speaker Change: To draw the question. Please press star one again, we stand by while a compile the Q&A roster.
Speaker Change: Our first question comes from Adam <unk> from Piper Sandler. Please go ahead.
Speaker Change: Hi, This is Kyle on for Adam.
Speaker Change: Thanks for taking the question.
Speaker Change: Yes first.
Speaker Change: As we just look at the guidance reduction for full year 2024.
Speaker Change: Can you just help us understand a bit what changed internally in terms of your expectations and then how that should help us think about 2025 looking forward.
Speaker Change: Hey, Kyle this is Steve.
Speaker Change: Yes so.
Speaker Change: We really base Q4 guidance on the trends that we continue to see.
In Q3.
Speaker Change: <unk>.
Speaker Change: Essentially there's been a change in purchasing patterns from our customers and due to the reimbursement and cash flow issues. They experienced in Q1.
Speaker Change: We have seen some recovery with Q3 being our largest collection quarter in about a year and a half.
Speaker Change: But their cash flows were slowed and so it did change the way they were.
Speaker Change: Historically purchasing treatment sessions.
Speaker Change: Right now what we're seeing.
Speaker Change: Track Star databases is.
Speaker Change: Inventory levels are at historic lows actually approaching the pre COVID-19 levels.
Speaker Change: So whereas customers used to purchase.
Speaker Change: Almost a quarters worth of inventory to be able to treat their next quarter's worth of patients.
Speaker Change: They really cut back and.
Speaker Change: They're probably holding or they are holding between 1% and two months of inventory and so we have seen some stabilization and improvement.
Speaker Change: But again it's.
Speaker Change: It wouldn't be responsible to forecast.
Speaker Change: A full recovery in Q4, which impacted that treatment session.
Speaker Change: Forecast for Q4, I will say that our system Utilizations remain very strong and in our business. If we have a strong October it bodes well for the rest of the quarter.
Speaker Change: And again, we had a very strong October from a utilization perspective so.
Speaker Change: We are disappointed the impact that the reimbursement hat.
Speaker Change: But we are seeing.
Stabilization and some improvement as we close out the year.
Speaker Change: It is important to note, though that as Keith mentioned it in his script, we are focusing more on profitability.
Speaker Change: And some of the restructuring that we did.
Speaker Change: Last week did impact the commercial team. So that is forecast to have some impact on revenues in Q4.
Okay. Thanks, Yeah, that's super helpful.
Speaker Change: I guess as a second question then with regards to Green book and congrats on the progress there.
Speaker Change: Are you still committed to mid teens growth for the combined entity as we look into 'twenty five and 26.
And if so can you remind us of what is kind of driving that growth acceleration.
Speaker Change: Yes.
Speaker Change: Yeah and so.
Speaker Change: I realize we did state that in the proxy and that is one of our internal goals, but.
Speaker Change: There are a lot of moving parts.
Speaker Change: With the transaction at this point.
Speaker Change: And so again, our primary focus is not top line growth it is profitability and.
Speaker Change: Our goal is to get to cash flow breakeven in Q3, and it may come at the expense of.
Speaker Change: Losing some top line revenue to improve profitability.
Speaker Change: And so that's really our focus.
Speaker Change: And I think as we worked through and reminder, we obviously haven't closed yet.
Speaker Change: We will be providing updates.
Speaker Change: As to where the topline number will be in 2025.
That's all for me thanks.
Speaker Change: Thank you.
Our next question.
Speaker Change: Our next question comes from William <unk> from Canaccord Genuity. Please go ahead.
Speaker Change: Hey, great. Thanks, good morning.
Speaker Change: Can you just give us in quarters past, we've talked about kind of the business and separate it out between green brick and non Green book I was wondering if you just give us a little granularity on kind of how those separate businesses are trending today, and then even including the.
Speaker Change: The threshold testing, which is a predictive for kind of future treatments.
Speaker Change: Yes.
Speaker Change: This is Keith Phil.
I am hesitant to comment on on Green Brooks progress since we haven't closed the deal yet, but our our business with Green book is still very strong.
Speaker Change: And one of the things in our Q4 guidance was the intercompany.
Speaker Change: Revenue had been removed also so that was taken out of it but.
Speaker Change: I think we're looking at our <unk>.
Speaker Change: Local consumable business and as Steve mentioned that business is up significantly.
Speaker Change: And continues to be strong so on the Greenberg side their business.
Speaker Change: On both.
Speaker Change: Well on Tms.
Speaker Change: Is it is very.
Speaker Change: Strong.
And they'll report on their business on both sides bravado and Tms shortly.
Speaker Change: Okay, and then just Steve can you help us understand in terms of that guidance I mean, it's a pretty big cut down to 1920 streets sitting at 25, how much of that was just removal of the intercompany revenue.
Speaker Change: To clarify the guidance that we had it does.
Speaker Change: It is standalone. So it doesn't include.
Speaker Change: Projected Greenberg purchases.
Speaker Change: And so I would say the bulk of the shortfall to the street at 25 is due to the restructuring.
Speaker Change: And so it did impact the commercial team across the board.
Speaker Change: And again.
Internally, we've made the decision to really focus on profitability and getting to cash flow breakeven.
Speaker Change: That did come at the expense of some commercial team members.
Speaker Change: And it will have an impact on our Q4 revenues.
Okay and then just last question for me just as you talk about the commercial restructuring just help us understand exactly strategically what you're doing differently I mean is it.
Speaker Change: Was it the changing capital reps. So you sell less capital is it a change in field force it sounds like.
Speaker Change: Youre tightening up the territories when you talked about the 10 mile radius and the physicians.
Speaker Change: Just help us understand how we should think about this was this a 20% risk to the commercial work at 10% rate just any.
Speaker Change: Anything you can help us give us provide us to help us understand a little better and thanks for taking my questions.
Speaker Change: Sure So bill the.
Speaker Change: The change in commercial strategy, it's really just a shift one of the.
Speaker Change: One of the aspects one of the business models that green broadcast is utilization of what they referred to as ramps their regional area managers the Rams.
Speaker Change: Responsibility is to work with local providers around their green Brook centers too.
Speaker Change: Talk to those providers about provider and Tms and the benefits that they can bring to patients that have failed multiple drugs.
Speaker Change: These are providers that currently don't offer Tms or don't plan to offer Tms or provide out.
Speaker Change: So that model has worked very well for great book and that team has been an excellent driver of revenue to Green Brook locations. So we are using the data that we have to help.
Speaker Change: So that group more efficient.
Speaker Change: And we are also going to be doing the same training with our practice development managers. So that they can also.
Speaker Change: Work with our BMP accounts with local providers around their locations and drive patients more efficiently into those practices. So that's really the major shift in it.
The business model.
With that would come.
Speaker Change: <unk> eight <unk>.
Speaker Change: Through focus on these accounts.
Speaker Change: On the treatment session side of the business and as a result, we will be driving.
Speaker Change: More capital systems as second system sales into those existing accounts.
Speaker Change: Thank you <unk> next question.
Speaker Change: Our next question comes from James Beers from William Blair. Please go ahead.
James Beers: Hey, guys, it's Jimmy on for Margaret Thanks for taking the question I just want to clarify one thing.
James Beers: In terms of your guidance reduction is this primarily coming from treatment sessions I guess as I'm looking at it and then just maybe talk to why or maybe just give us an update on an adolescent adoption and then <unk> also opened up BNP to all accounts. So maybe just talk to why that isn't offsetting or contributing and then are you assuming any contribution.
James Beers: In Q4, and then as we looked at 25 I guess do you start seeing those initiatives begin to bear fruit or is it our expectations pushed further along.
Speaker Change: Yeah, Hi, Jimmy I would say the majority of the Q4 weakness is related to treatment sessions.
Speaker Change: We have seen a stabilization of the credit and lending environment.
Speaker Change: So yes.
Speaker Change: We may be a little short from historic Q4 capital levels.
Speaker Change: But again with.
Speaker Change: With the change of focus on really getting our existing customers as well as greenberg's current systems to capacity.
Speaker Change: It will take a little bit of time, and so I would say the shortfall is more related to.
Speaker Change: The treatment session side.
Speaker Change: And regarding adolescence.
Speaker Change: <unk> extremely strong, it's a big opportunity with green brick as well and so.
Speaker Change: If we look at the adolescence treat it and we look at both patients and providers.
Speaker Change: It's significantly up through the end of Q3, yet to where it was in March when we received approval.
Speaker Change: Okay. That's helpful. And then maybe just one on international and it suddenly we talked about last time, but in terms of Japan I believe there was an.
Speaker Change: Over the air update opportunity and that would drive some sort of upgrade cycles. So maybe can you just talk to what youre seeing there and if that's still the implication for Q4.
Speaker Change: So our business in Japan as it's.
Speaker Change: It's growing.
Speaker Change: Also in.
Speaker Change: In Korea, so our focus over there is really to take advantage of the hospital systems that.
Speaker Change: Are now providing.
Speaker Change: Now broadening it throughout there.
Speaker Change: Their entire system.
Speaker Change:
Speaker Change: It's quite honestly, though and we've said it before our focus is to sustain our business and on the international markets. Our focus is in the United States and is.
Speaker Change: Steve indicated we have a great opportunity with with the Green brick team you mentioned adolescence the focus at <unk>.
Speaker Change: In the Green Brook location has not been on the adolescent front, but we have an opportunity now through their training.
Speaker Change: We're going to provide the Rams.
Speaker Change: Which starts tomorrow and it goes for a few days.
Speaker Change: To really educate them on the benefits for adolescents and continue that growth our number set.
Speaker Change: Centers that has is now treating adolescent patients has grown significantly.
Speaker Change: Okay. That's helpful and just maybe one last clarifying question I believe you said, reaching cash flow breakeven by the third quarter I might be reading this wrong, but I believe the press release says the second quarter. So if you could just clarify what the timing is there.
Speaker Change: I'm, sorry third quarter.
Speaker Change: Okay, great. Thanks, guys.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our last question comes from the line of Dannie started at.
Speaker Change: At JMP. Please go ahead.
Speaker Change: Yeah, great. Thanks for the question.
Speaker Change: Just on synergies I know you updated that number at $20 million.
Speaker Change: Or is that other $5 million coming from is it primarily the strategic Reorders, we called out and just as you sit here today, having had more time to digest what this combined entity.
Speaker Change: We'll look like are there.
Speaker Change: Any other areas, where there could be some additional opportunities for synergies or do you feel that $20 million to smart ceiling at this point.
Speaker Change: Hey, Danny yes.
Newest increment came from the restructuring within <unk>.
Speaker Change: So that really wasn't anticipated.
Speaker Change: During the summer as we were working through.
Speaker Change: The definitive agreement.
Speaker Change: Sure.
Speaker Change: I do not think that 20 million is the ceiling.
Speaker Change: Again, a lot of these activities have been at the higher level.
Speaker Change: And have not included in all of the parties within specific department. So.
Speaker Change: I think youll see that number Andrew.
Speaker Change: As we work more closely with more involvement post close.
Speaker Change: Great and then just one follow up.
Speaker Change: The cash flow breakeven timing, how should we think about cash cash usage in <unk> into the first half of 2025, just given that new timing and then how comfortable are you with the cash position here and do you anticipate drawing down that second tranche of debt.
Speaker Change: Okay.
Speaker Change: Yes, I mean, we're comfortable with our cash position right now.
Speaker Change: And also with the burn that's forecast by both companies in Q4.
Speaker Change: There are significant deal.
Speaker Change: <unk> expenses that we'll incur.
Speaker Change: On close.
Speaker Change: So again.
Speaker Change: We think we're <unk>.
Speaker Change: Existing with a healthy balance.
Speaker Change: And our forecasting of reduced burn in Q1 of 'twenty five.
Speaker Change: We are in conversations with our lender perceptive advisors.
Speaker Change: And so I think it's a little early.
Speaker Change: To say, if we're going to drive down or not.
Speaker Change: Again from a company perspective wed always like a little bit of cash question.
Speaker Change: But again, our forecasts and models.
Speaker Change: Do predict that.
Speaker Change: Yes.
Speaker Change: A decent cash balance as we work through that.
Speaker Change: Initial months of the transaction close.
Speaker Change: Great. Thanks very much.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: <unk> answer session is now closed I will now turn it back to Keith Sullivan for closing remarks.
Speaker Change: Thank you for your interest in <unk>, and we look forward to updating you on the next quarterly call.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
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Speaker Change: Okay.
Speaker Change: Sure.