Q4 2024 Enhabit Inc Earnings Call
Speaker Change: Hello and welcome to the Inhabit Inc. 4th quarter 2024 earnings call. All lines have been placed on you to prevent any background noise.
Speaker Change: After the speakers remarks, there will be a question and answer session, and if you would like to ask a question during this time, please press star one on your telephone keypad. I would now like to turn the conference over to Jobie Williams, Enhabit Senior Vice President and Treasurer. You may begin.
Jobie Williams: Thank you, operator, and good morning, everyone. Thank you for joining our call today. With me on the call is Barbara Jacobsmeyer, President and Chief Executive Officer, and Ryan Solomon, Chief Financial Officer.
Jobie Williams: On page two of the supplemental information, you will find the Safe Harbor Statements, which are also set forth on the last page of the earnings release.
Jobie Williams: During the call, we will make four looking statements, which are subject to risk and uncertainties, many of which are beyond our control.
Jobie Williams: Certain risks and uncertainties that could cause actual results to differ material from our projections, estimates, and expectations are discussed in our SEC following, including our annual report on Form 10K, which are available on our website. We encourage you to read them.
Jobie Williams: You're a caution not to place undue reliance on the estimates, projections, guidance, and other forward-looking information presented, which are based on current estimates of future events and speak only as of today. We do not undertake a duty to update these forward-looking statements.
Jobie Williams: Our supplemental information and discussion on this call will include certain non-GAAP financial measures.
Jobie Williams: For such measures, reconciliation to the most directly comparable gap measure is available at the end of the supplemental information and the earnings release.
With that, I'll turn the call over to Barb
Barb Jacobsmeyer: Good morning and thanks for joining us. I'm going to start with a review of the fourth quarter and then highlight how executing on our strategies in 2024 has laid the foundation for improved performance in 2025.
Barb Jacobsmeyer: Home Health Executed on Specific Growth Strategies in 2024. Throughout the year we focused on stabilizing our Medicare fee-for-service admissions as a percentage of over all total home health admissions.
Barb Jacobsmeyer: Growing the percentage of home health visits in our payer innovation contract and leveraging visit efficiency to increase clinical capacity.
Barb Jacobsmeyer: Similar to past quarters, fourth quarter Medicare fee for service constituted 44% of our home health admissions.
Barb Jacobsmeyer: 4th quarter non-medicare admissions were up 10.7% year-over-year, driving our total admission to growth of 1.8%.
Barb Jacobsmeyer: Our home health team achieved total admissions growth even while replacing United Healthcare volumes for much of the fourth quarter and managing through the impacts of Hurricane Elaine and Milton.
Barb Jacobsmeyer: If UHC volumes had remained flat and there had been no hurricanes, admission growth would have been 5.4% which would have been in line with quarters 2 and 3.
We enter 2025 in a stronger position.
Barb Jacobsmeyer: With our new UHC contract in place, alongside our other two fully ramped up national contracts, our home health teams are again able to be a full service provider for our referral sources.
Barb Jacobsmeyer: Our teams are motivated and re-energized by the ability to turn their sole focus to admission and census growth.
Barb Jacobsmeyer: That focus is already driving results with our census growth of 7.2% sequentially from January to February .
Barb Jacobsmeyer: January's ADC was 38,721 and grew to approximately 41,500 in February , with February exiting above 42,000.
Barb Jacobsmeyer: In 2024, we also increase the percentage of home health visits in payer innovation contracts.
Barb Jacobsmeyer: In the fourth quarter of 2023, 22% of non-medicare visits were in payer innovation contracts.
Barb Jacobsmeyer: That rate grew to 48% in the fourth quarter of 2024.
Barb Jacobsmeyer: Pay-or-mix progress to pay-or-innovation contracts throughout 2024 resulted in a 5.7% improvement year-over-year in non-medicare revenue per visit.
Barb Jacobsmeyer: Managing our visits for episode while maintaining high quality outcomes is an important part of our strategy.
Barb Jacobsmeyer: Our teams continue to use pulse technology to manage a just right care plan for each of our patients.
which allows us to be more efficient with episodic payers.
Barb Jacobsmeyer: Reflecting this trend, total visits per episode were 13.9 in quarter four, 2024, versus 14.3 in quarter four, 2023.
Barb Jacobsmeyer: Continued progress with managing visits for episodes will allow for additional clinical capacity in 2025.
Barb Jacobsmeyer: On the advocacy front, we joined others in the home health industry to make the new administration aware of the detrimental effects of the permanent and temporary payment adjustments. CMS has written into the home health final rule in recent years.
Barb Jacobsmeyer: We fully support the recent consolidation of industry trade associations and believe this will create a stronger and unified voice for reversing CMS's negative adjustment trend.
Barb Jacobsmeyer: The changes include shutting down the partnership for Quality Home Healthcare and that group joining efforts within National Alliance for Care at Home.
Barb Jacobsmeyer: The Alliance, which is a combination of the National Association for Home Care and Hospice and the National Hospice and Pellative Care Organization, has hired Scott Levy as its chief government relations officer, a position he formerly held at a metasist.
Barb Jacobsmeyer: We appreciate the alliance's efforts and determination to support the industry and look forward to seeing its impact.
Speaker Change: The strategies and processes we implemented in our hospice operations allow us to admit patients timely, provide top quality care and grow this business.
Speaker Change: We exited 2024 with our highest hospice census since the spin.
Speaker Change: Throughout 2024, we focused on growing senses and gaining the operating leverage against the fixed cost structure associated with the case management staffing model.
Speaker Change: We met our census growth goal and concluded the year with sequential census growth each month of the year.
Speaker Change: In the fourth quarter, our average daily census increased 8.6% year-over-year, with same store up 7%.
Speaker Change: Our Total Admissions Group 6.5% year-over-year, with same store up 4.4%.
Speaker Change: We also met our goal of gaining operating leverage against the sixth cost structure.
Speaker Change: Our 2024 full year cost per day increased 2.6 percent, less than inflationary cost increases and at the positive end of our guidance range.
Speaker Change: Execution of our case management model, the build out of admission departments, and growth of business development teams collectively drove positive results in the hospice segment.
Speaker Change: We have seen continued growth momentum. Our hospice average daily census continues to grow sequentially in January and February .
Speaker Change: To complement our organic growth strategy in both segments and to enter new markets with low capital cost, we continue our
In 2024, we successfully opened six Lenovo locations.
Bipostis and One Home Health
Speaker Change: We funded 2024 DiMnovo projects with EBITDA generated by 2022 and 2023 DiMnovo's.
Speaker Change: We have 14 de novo projects in process, including the four continuing projects from 2024.
Speaker Change: Our concentration continues to be weighted towards adding hospice locations adjacent to home health operations because we benefit from talent recruiting and market brand recognition as well as referral source awareness.
Turning now to cost-structure strategies updates.
Speaker Change: On the Q3 call, we mentioned we would be closing or consolidating a number of branches.
Speaker Change: We are closing five home health and two hospice branches and we'll be consolidating one home health and two hospice branches.
Speaker Change: While notice has been given to staff and patients, branch closing dates vary by state due to notice requirements.
Speaker Change: We expect seven to be closed or consolidated by the end of quarter one 2025 with the remainder by the end of quarter two.
Speaker Change: We anticipate the impact of these closures and consolidations will improve 2025 adjusted EBITDA by approximately $1 million, or buying annualized rate of 1.5 million.
Speaker Change: We also indicated we were outsourcing coding functions as another cost savings measure.
Speaker Change: All branches will be transitioned by the end of the first quarter, which we estimate will deliver 1.5 million in cost savings for the remainder of 2025.
Speaker Change: and now I will turn it over to Ryan who will cover the financial results of Quarter 4 and our 2025 guidance.
Thank you, Barb.
Ryan Solomon: Before recapping the results for the fourth quarter, I would like to thank Barb and the broader and habit board for the opportunity to join the team here at CFO back in December .
Ryan Solomon: In my short time in the role, it is clear to me that our strategy is sound and we are well positioned deliver meaningful shareholder value.
Ryan Solomon: Many of the key elements are in place to deliver revenue growth across both segments while also creating leverage on our cost base.
Ryan Solomon: Mining these elements with a continued focus on a healthy payer mix in our home health segment should improve the overall margin profile of our business.
Ryan Solomon: As we execute this strategy, we will continue to focus on deleveraging our balance sheet to provide more flexibility under our capital structure and open additional avenues for growth.
Ryan Solomon: Shifting to our Q4 Consolidated Result, we delivered improved performance sequentially both in revenue and adjusted EBITDA, despite one-time challenges within the court.
Ryan Solomon: In the fourth quarter, Consolidated Net Revenue was 258.2 million, an increase sequentially of 4.6 million, or 1.8% quarter over quarter, while a decrease of 2.4 million or 0.9% year over year.
Ryan Solomon: Consolidated Sequential Revenue Growth was led by continued strong momentum in our host of segment on both volume and rate, partially offset by lower revenue from the home health segment, primarily related to her keen volume impacts early in the quarter.
Ryan Solomon: Consolidated revenue growth in the quarter translated into improved profitability sequentially.
Ryan Solomon: with consolidated adjustity of 25.1 million in the quarter, an increase sequentially of 0.6 million or 2.4% while remaining relatively flat year over year.
Ryan Solomon: Drivers of Q4 Consolidated Profitability Improvement Sequentially include improved revenue performance, partially offset by our annual merit increase effective October 1st.
Ryan Solomon: Before shifting to our Q4 segment performance commentary, I would like to highlight that we have incorporated new segment performance views, recapping both revenue and margin performance into our supplemental materials that we intend to provide on a go-forward basis.
Ryan Solomon: We believe these to be helpful in visualizing performance both year-over-year and sequentially in terms of volume, unit revenue, unit cost, and adjusted EBITDA for both segments.
The performance views for both segments will use census.
Ryan Solomon: which we will use interchangeably with the term average daily census or ADC for volume and unit metrics.
Ryan Solomon: Growing Census is the ultimate driver of financial results in each of our business segments.
Ryan Solomon: With 72% of our home health census now in episodic payers, we believe we can move to a more direct way of presenting our home health business metrics using census.
Ryan Solomon: For Home Health, both admissions and recertifications contribute to growing overall census and growing census with the right payer mix ultimately drives increasing revenues.
Ryan Solomon: on the cost side, optimizing staffing while maintaining high quality outcomes, should create more clinical capacity and allow us to support more census on similar costs, thereby improving cost for patient
Ryan Solomon: Now shifting the Q4 home health segment performance, revenue came in at 200.4 million, a decrease of 0.6 million or 0.3% sequentially on a volume decrease of 0.5% in average daily census, primarily due to hurricane-related impacts early in Q4.
Ryan Solomon: This was partially offset by unit revenue for patient day increase of 0.1% sequentially.
Ryan Solomon: which was driven by growth in Medicare ADC of 1%, partially offset by lower patient acuity mix.
Ryan Solomon: Home Health adjusted even total 35.5 million in Q4 reflecting a sequential decrease of 1.0 million or 2.7 percent with a growth margin decrease of 0.2 million and an increase in back office operations in ACAS at 0.8 million.
Ryan Solomon: The growth margin decrease sequentially reflects lower patient volumes and a flat growth margin as a percent of revenue.
Ryan Solomon: We were able to offset the impact of merit with productivity gains at the gross margin level while increased back office GNA is primarily due to an annual merit increase effective October 1.
Ryan Solomon: A few key items to highlight in home health outside of broader revenue and adjusted the deep staff performance to include the following.
Ryan Solomon: Medicare ADC improves sequentially in Q4 to 19,0818. We have seen continued growth thus far in Q1 2025 with current Medicare ADC above 20,000. Based on current trends, we expect this sequential improvement to continue in Q1.
Ryan Solomon: In addition to Medicare 18 improvement, our overall episodic ADC, which includes both traditional Medicare and non-medicare episodic payers, groups is 72% in Q4 and the third straight quarter of sequential and group.
Ryan Solomon: This improves our mix of Episodic ADC, which generally has a unit revenue advantage to non-episotic pairs.
Ryan Solomon: We successfully manage cost of services in Q4, keeping our cost per patient day year-of-a-year to a 1% increase.
Ryan Solomon: This reflects improved productivity set by the impact of merit and market related increases.
Ryan Solomon: The unit cost results demonstrate our continued focus on controlling staffing costs through productivity and optimizing staff while maintaining patient care and quality.
Now shifting to Q4, Haas de Segment Performance.
Ryan Solomon: Opposite Suggested Eve is out of total 13.3 million in Q4, reflecting a sequential increase of 3.3 million or 33%.
Ryan Solomon: on increased revenues combined with growth, margin, expansion, as unit revenue growth outpaced, unit cost increases primarily related to annual merit increase.
Ryan Solomon: A few key items to highlight in hospice outside of broader revenue and adjusted even to have performance include the following.
Ryan Solomon: Hospice adjusted EBITDA margin as a percent of revenue at 23% in Q4 reflects four straight quarters of sequential improvement and the highest adjusted EBITDA as a percent of revenue for this segment at Postspend.
Ryan Solomon: We continue to realize leverage benefits from growth as we mature the case management model.
Ryan Solomon: Q1, 2025 trends indicate sequential ADC growth will continue in early 2025.
Ryan Solomon: Ardenovo Strategy continues to plant the seeds for future growth as we open five hospice to other locations in 2024.
Ryan Solomon: Confidence in our de novo strategy remains strong, as contribution from the seven hospice locations launched in 2022 and 2023 generated 6.2 million of revenues and 1.2 million of adjusted EBITDA in full year 2024.
Ryan Solomon: Shifting the Q4 Home Office General and Administrative Expenses, which totaled 23.7 million or 9.2% of revenues in Q4, an increase of 1.7 million or 7.7% sequentially.
Ryan Solomon: This increase is primarily related to the merit increase effective October 1st and an unfavorable increase in group insurance playing off.
Ryan Solomon: Full Year Home Office, General and Administrative Total, $100.8 million or 9.7% of revenues.
Ryan Solomon: This reflects a $7 million improvement to prior year, while also lowering our home office expenses as a percentage of revenue by 60 basis points to four year 2023.
Ryan Solomon: Improvements are primarily due to targeted cost savings initiatives and lower incentive compensation, which more than offset other inflationary increases.
Ryan Solomon: Let's now transition to the balance sheet and cash flow performance.
Ryan Solomon: We remain focused on using free cash flow to improve our leverage profile, having reduced outstanding debt by approximately 40 million in 2024.
Ryan Solomon: We have available liquidity of approximately 80 million, including approximately 28 million of cash on hand. We believe this is adequate to support our operations, including our venerable strategy.
Ryan Solomon: In regard to cash flow, we generated approximately 54 million of adjusted free cash flow during 2024, which equates to an adjusted free cash flow conversion rate of approximately 54%.
Let's now turn to 2025 guidance.
Ryan Solomon: Please note that our 2025 guidance and related considerations can be found in our supplemental materials.
Ryan Solomon: Our 2025 guidance range for net service revenue is $1,50,000,000 to $1,80,000,000 [inaudible]
Ryan Solomon: with adjusted EBITDA in a range of 101 million to 107 million.
Ryan Solomon: Reflecting growth of approximately 7% at the wide end of the range
Ryan Solomon: We believe the quarterly cadence of our full year adjusted EBITDA guidance will reflect incremental sequential improvement each quarter throughout 2025. With acceleration post Q1 where we expect 23% to 24% of full year adjusted EBITDA to come in.
Ryan Solomon: The quarterly Cain's outline reflects a trough in our home health segment as we pivot from replacement to growth modes route Q1 following the signing of our national agreement in Lake Q4 2024.
Ryan Solomon: I will now briefly summarize the building blocks of our guides beginning with
Barb Jacobsmeyer: As Bard mentioned in a remarks, we believe that 2024 was a foundational year to set the stage for consistent census growth while using the results of our pair innovation strategy to differentiate ourselves in the market as a true, full service provider to our referral sources.
Allowing us to both grow and improve mix
Barb Jacobsmeyer: This combined with continued staffing and cost discipline should allow us to expand home health margins as we exit 2025 despite CMS rate reimbursement increases not keeping pace with our overall market inflation.
Barb Jacobsmeyer: For home health volumes, we assume full-year ADC growth of 4 to 5%, which assumes a lower volume beginning entry point in 2025 than where we entered 2024.
Limiting for your growth rate.
Barb Jacobsmeyer: In addition to volume growth, we assume that we slow the rate of decline in Medicare volumes.
Barb Jacobsmeyer: We anticipate reducing our rate of Medicare volume decline approximately in half from what we saw in 2024 and more consistent with overall industry trends.
Barb Jacobsmeyer: In regard to home health unit revenue, we expect revenue for patient day to decrease 0.5% to remain flat on the full year.
Barb Jacobsmeyer: which reflects improvements in CMS Medicare pricing of approximately 1% in 2025 based on the home health final rule. We also expect our Medicare Advantage pricing to improve based on the success of our payer innovation team.
Barb Jacobsmeyer: including a four-year impact from the renegotiated national agreement with improved rates that became effective in January of 2025.
Barb Jacobsmeyer: These rate improvements will be largely offset by assumed unfavorable mix primarily related to lower Medicare volumes.
Barb Jacobsmeyer: While we anticipate reducing our Medicare year-over-year ADC to clients, we still anticipate this to be a mixed headwind, particularly in the first half of 2025, as we build back Medicare volumes from our TROF in late 2024.
Barb Jacobsmeyer: For hospice, we remain focused on building our 2024 momentum and growing senses.
resulting in additional operating leverage in this segment.
Barb Jacobsmeyer: For hospice volumes in 2025, we assume hospice ADC grows of 7% to 8.5%.
Barb Jacobsmeyer: We anticipate building on the strong exit rate volumes from 2024 as we remain clinically staffed to grow and continue to execute on our broader de novo strategy.
Barb Jacobsmeyer: for hospice pricing in 2025. We expect our hospice unit revenue for patient day to improve in the 4-5% range.
Barb Jacobsmeyer: which reflects the hospice final rule effective October 1 combined with anticipated favorable hospice cap liability development and an assumption of a prospective CMS rate increase in October 2025. On the cost side of the equation, we face two primary headwinds in 2025.
Barb Jacobsmeyer: Wage inflation and normalization of our incentive compensation expenses as we improve performance.
Barb Jacobsmeyer: In regards to wage inflation, we assume similar 3% merit and other market related increases in 2025 to what we experience in 2024.
Barb Jacobsmeyer: The assumed continued wage inflation more than offsets are net reimbursement rate increases.
Barb Jacobsmeyer: We received from Medicare in both segments as well as our payer innovation efforts.
Barb Jacobsmeyer: In both our home health and hospice segments, we believe we can partially offset compensation inflation through productivity and optimization improvements. We currently believe our unit cost will increase between 2 and 3% year-of-year.
Barb Jacobsmeyer: We expect our home office costs to remain relatively flat as a percent of the consolidated revenue and 9.7 percent of revenues, as merit increases and increase incentive compensation year-year are partially offset by run rate value of savings of 2024 reductions in continued cost discipline in 2025.
Barb Jacobsmeyer: As previously outlined, key components of our strategy in 2025 are to grow while optimizing
Barb Jacobsmeyer: With a particular focus on limiting our mandatory D.C. rate of decline relative to prior years.
Barb Jacobsmeyer: The assumptions around next are challenging to forecast and have an outside impact on overall guidance assumptions.
Barb Jacobsmeyer: With this in mind, the difference between the low and high end of our guidance range primarily is dependent upon our ability to optimize our payments.
Barb Jacobsmeyer: We expect to generate $47,000,000 to $58,000,000 of adjusted free cash flow in 2025.
Barb Jacobsmeyer: Adjusted free cash flow in 2025 will be impacted by our return to cash income tax payments.
Barb Jacobsmeyer: which represents a $7 to $8 million incremental use of cash in 2025 that we did not experience in 2024, largely offset with improved cash flow from operations and assumed improvement in working capital related to speeding up accounts receivable collection cycles.
Barb Jacobsmeyer: With our assumed free cash flow generation, we remain focused on reducing leverage through 2025.
Barb Jacobsmeyer: With that, thank you for the time this morning, and I will turn the call back over to Barb for a few final comments.
Speaker Change: Thanks, Ryan. Before we open the line for questions, I want to reflect on our team's drive in 2024. We remain committed to executing our strategies and delivering results.
Speaker Change: This was evidenced by our strong results in hospice, particularly in the second half of 2024. We made a large investment in our case management model in 2023, believing it key to changing our hospice business trajectory in a meaningful manner.
Speaker Change: Solving our capacity challenges through this investment allowed us to turn focus to our business development strategy, which resulted in increasing sense of growth throughout 2024 and into 2025.
Speaker Change: Similar for home health, we believe that executing on our pay or strategy has laid the ground work for long-term home health success.
Speaker Change: At the end of the fourth quarter, we were forced to turn our focus to replacing business.
Speaker Change: That noise is behind us. We are attacking 2025 laser focused on growth.
Operator, we will now open the lines for questions.
Speaker Change: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again.
Speaker Change: We ask that you please limit yourself to one question and one follow-up. Thank you. Please ensure you are not on speakerphone and that your phone is not on mute when called upon.
Speaker Change: Your first question comes from Brian Tanquilut of Jeff Reese. Your line is open.
Hey, good morning.
Brian Tranquilis: Barb, as I think about the momentum that we've seen you guys deliver in Q4, just curious how you're thinking about that carrying over into 2025, especially now that you have the BD team built out, and then maybe you've kind of related to that just what are your thoughts on fee-for-service and your ability to game share there going forward.
Brian Tranquilis: Sure. So first on the hospice, you know, we do feel confident that now that we have the case management model, you know fully implemented and no capacity constraints, we've really started to build on that business development team.
Brian Tranquilis: We do have the admissions department in every region now. That was something that was feedback from our referral sources that the key to really converting referrals is how quickly can we respond. So we believe those admission departments have been critical. And so, you know, you saw that sequential growth each month of of 24 and it's continued now in January and February . So we don't see any reason why that should not continue. Thank you.
Brian Tranquilis: And then on the on the home side, really being able now to turn fully to being that full service provider, you know, I mentioned the census growth that we've seen just from January to February . That has been with a nice mix.
Brian Tranquilis: We're seeing a nice blend of adding the non-epithotic to episodic and the fee for service. So, we're seeing the teams really balance that pay or mix as we're growing our senses here in the new year.
Brian Tranquilis: Got it. And then maybe as I think about your comments and the press release about the pay or innovation contract and then your prepared remarks as well.
Speaker Change: What kind of visibility do you have there and how are you thinking about the leverage that you have to confer non non-paradivation contracts into you have better paying deals with M.A. plans.
Speaker Change: Sure, so we still have, you know, a lot of regional in the pipeline that we're working with, you know, there is I think a renewed interest in moving towards episodic I think one of the things we've really
Speaker Change: has been able to help payers realize is that, you know, when you get into an episodic arrangement, it puts the responsibility on the provider to manage those visits and maintain or grow their quality outcomes. And so there continues to be good discussions with regional plans on episodic contracts. So, you know, I don't see our payer innovation team flowing down in any way. Thank you.
Awesome. Thank you.
Thanks Brian .
Ryan Langston: The next question comes from Ryan Langston of TD Cowan. Your line is open.
Ryan Langston: Thanks. Good morning. Maybe just follow up on Brian's question. I'm the home health payer innovation side. I think in the slides you have 49 new opportunities 31 historical agreements.
Ryan Langston: Renegotiating. How does that relate back to 25 guidance? I guess it's there some potential maybe upside to the guide depending on how the outcome of those negotiations happen? Yeah.
Speaker Change: Yeah, Ryan, thank you, this is Ryan here. In regards to the guy, the way we thought about that, it's really consistent with the
Ryan Langston: Information that we provided in our investor presentation in December , we believe that 19 to 21 million.
of overall revenue improvement based on pricing is intact.
Ryan Langston: We think about the building blocks around that. It's really the CMS final rate rule. The net recently negotiated national agreement.
Ryan Langston: that we saw in place. We haven't assumed any sort of material kind of peer innovation, you know, incremental unit revenues in that overall kind of revenue guide that we provided.
Speaker Change: Got it. And then just last one for me, the hospice revenue per day was up pretty nicely despite a pretty tough comp from last year. I think Ryan, you said maybe some benefit from hospice cap accruals versus the third quarter. Anyway, you could break down sort of the components between maybe sort of true rate and what those accruals were. Thanks.
Speaker Change: Yeah, so when we think about the hospice cap, a cruel benefit, when we look at that, you know, overall what we saw, and we included in our supplemental materials.
Speaker Change: was about a $1.4 million benefit. And so when you normalize for that, you're going to see it more consistent with what you would have expected in overall kind of Medicare rate increase that we saw within the quarter. So once you set that aside, I think it would be pretty consistent.
with what you would have expected from a Medicare rate increased perspective. [inaudible]
Okay, thanks. Appreciate it.
Speaker Change: There are no further questions at this time. I will turn the call to Jobie Williams for closing remarks.
Speaker Change: If you have any additional questions, please email investorrelations at ehave.com. Thank you again for joining today's call.
Speaker Change: This concludes today's conference call. Thank you for joining. You may now disconnect.