Q1 2025 ModivCare Inc Earnings Call
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Good day, everyone and welcome to motor carriers first quarter 2025 financial results Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note. This conference call is being recorded today speaker will be huge Sampson motor carriers, President and Chief Executive.
Boston.
Before we get started I want to remind everyone that during today's call management will make forward looking statements under the private Securities Litigation Reform Act. These statements involve risks uncertainties and other factors that could cause actual results or events to differ materially from expectations.
Information regarding these factors is contained in today's press release and in the company's filings with the SEC. We will also discuss non-GAAP financial measures to provide additional information to investors a definition of these non-GAAP measures non-GAAP financial measures and the applicable reconciliations to their most directly comparable GAAP financial measures is included.
In our press release and form 8-K.
A replay of this conference call will be available approximately one hour. After today's call concludes and will be posted on our website motives care dot com.
Heath: This morning, he had Samsung will begin with opening remarks and review our financial results and guidance. Then we'll open the call for questions with that I will turn the call over to Heath.
Speaker Change: Good afternoon, everyone and thank you for joining us today.
Speaker Change: We appreciate the opportunity to walk through our first quarter 2025 results and provide an update on execution across our operating priorities.
Speaker Change: To create a consistent framework for reporting progress we are aligning our updates to five enterprise objectives, one grow and retain core customer relationships across all segments.
Speaker Change: To digitize and automate our care access platform.
Speaker Change: Three optimize our operating model for simplicity and scale.
Speaker Change: For increased capital efficiency, and advance deleveraging and five deliver high impact client centric supportive care.
Speaker Change: These five objectives guide our decision making across segments and functions and will continue to serve as the structure for how we communicate execution and performance going forward.
Speaker Change: Now moving to our first strategic objective to grow core customer relationships across all segments.
Speaker Change: In Q1, we focused on strengthening customer relationships to retention target of renewals and new business wins across all three segments.
Speaker Change: And any empty we secured two new Medicaid managed care contracts one in the southwest and one in the Pacific region.
Speaker Change: Presenting a combined annual contract value of approximately $52 million with expected in year revenue contribution of around $38 million.
Speaker Change: We remain the platform of choice for large health plans seeking broad network access consistent quality outcomes and actual insights to improve member satisfaction and reduce the total cost of care.
Speaker Change: Our forward looking tech enabled approach to integrating the care ecosystem combined with our ability to help clients proactively manage evolving CMS requirements, including.
Speaker Change: Including the complex and state specific needs of dual eligible populations ahead of the 2027 mandates continues to differentiate motive care in the market.
Speaker Change: We also submitted for state contract renewals totaling over $246 million in annual contract value in each case, we are the incumbent and we remain on track for the renewal and continue to be a high value quality partner in each of these states.
Speaker Change: Our broader opportunity in 2026 pipeline exceeds $500 million in potential contract value.
Speaker Change: We also experienced the loss of a regional contract totaling $15 million in annual revenue driven by a national plans decision to consolidate vendors. While this was a smaller relationship. It was one we believe we should have reached range performance was strong.
Speaker Change: This reinforces the importance of our ongoing investments in commercial responsiveness and account level management discipline retention remains a key performance priority.
Speaker Change: In personal care, we signed four strategic agreements, including two national and two regional plans.
Speaker Change: These contracts spanned geographies in the north east and southeast and are expected to generate between 40050 thousand monthly service hours with contribution margins above our Medicaid average.
Speaker Change: In monitoring we continue to grow our Medicaid footprint, adding two new markets during the quarter.
Speaker Change: Indiana, which is about 10% of our Lps revenue referral volume increased by more than 45% year over year, while our newest southeastern market delivered sequential growth.
Speaker Change: Our innovation and development efforts are beginning to deliver results expanding our monitoring and care management capabilities beyond traditional <unk> solutions.
Speaker Change: While we are still in early stages launching new contracts, we believe the total addressable market is substantial.
Speaker Change: And we have built the infrastructure and capability needed to scale effectively.
Speaker Change: Now turning to our second strategic objective to digitize and automate our care access platform.
Speaker Change: We continue to advance our digital transformation strategy in Q1 with a focus on improving operational scalability.
Speaker Change: Reducing unit cost and preparing each segment for future growth.
Speaker Change: In any empty or self service call to trip ratio reached 36, 1%.
Speaker Change: Up from 35% in Q4, and 31% a year ago.
Speaker Change: This growth in digital reservation was supported by ongoing API integration and channel enhancements.
Speaker Change: Automated intake and trip adjudication contributed to one 2% year over year reduction in unit costs with purchased services per trip decreasing to $46 $9.
Speaker Change: Digital trip volume exceeded 1 million transactions in the quarter.
Speaker Change: Complaint a key performance metric in the complex any empty environment declined 31, 2% year over year and on time performance rose to 95, 2% and mistress decreased by 20% quarter over quarter, reflecting meaningful improvements driven by automation and enhanced service Courtney.
Speaker Change: Sure.
Speaker Change: We also expanded the use of our intelligent virtual agent for outbound call handling and deployed AI powered tools for QA automation.
Speaker Change: These tools are improving writing accuracy.
Speaker Change: Feeding our feedback loops and creating more consistent oversight across contact center operations.
Speaker Change: As part of monetization in the <unk> segment, we're in the process of restructuring.
Speaker Change: The organization and are building out a more tech first model by adding talent in data AI and agile operations.
Speaker Change: While we continue to operate with over 2000 contact center agents and 800 transportation support roles. The infrastructure now in place positions us to accelerate automation.
Speaker Change: <unk> fixed labor intensity and streamline repetitive tasks going forward.
Speaker Change: In personal care, we expanded deployment of digital tools included for shift scheduling caregiver engagement and E learning.
Speaker Change: <unk> achieved a 72% completion rate among newly Onboarding caregivers.
Speaker Change: These are industry, leading tools, which enable recruiting and retaining caregivers, while also strengthening compliance and revenue cycle management and supporting robust fraud waste and abuse controls.
Speaker Change: And monitoring we completed phase one of our cloud based continuity platform and launched new revenue cycle management automation.
Speaker Change: Together these initiatives reflect the foundation of our platform modernization strategy.
Speaker Change: Enabling faster execution reduce manual workload and supporting more scalable and client service delivery in both current operations and future business models.
Speaker Change: Now for our third strategic objective to optimize our operating model for simplicity and scale.
Speaker Change: We advanced our structural realignment work by streamlining operations, consolidating leadership structures and reducing fixed overhead across the business.
Speaker Change: In April we launched a company wide G&A reduction initiative targeting approximately $25 million in annualized savings.
Speaker Change: With additional opportunities identified as part of the ongoing flat.
Speaker Change: Combined with the optimization actions implemented in late 2024 and early 2025.
Speaker Change: The savings were driven by workforce efficiencies vendor consolidation and realization of planned reductions as.
Speaker Change: As part of our organizational alignment and future strategic plans, Bob Gutierrez, CFO and Jessica crawl CIO will be departing the company after advancing their respective functions in the company over the last few years.
Speaker Change: These transitions are deliberate and aligned with both our near term priorities.
Speaker Change: And the long term direction of the business.
Speaker Change: We have a strong experienced finance team with deep public company healthcare and audit experience backed by leaders focused on execution and results on.
Speaker Change: On the technology side, we are advancing the next phase of our platform with a capable team leading our shift toward automation AI and digital scalability.
Speaker Change: And then E&P, we completed a full operating restructure integrating.
Speaker Change: Integrating trip operations.
Speaker Change: Client services and transportation network management under unified regional leadership.
Speaker Change: This model enhances decision speed and financial accountability in the field, while enabling a modern connected and hyper local healthcare ecosystem.
Speaker Change: Yeah.
Speaker Change: In personal care and monitoring we streamline operations to reduce costs and improve execution and Pts a shift to a hub and spoke model drove $1 million in year over year G&A reduction supported by standardized dashboards trucking caregiver Onboarding and branch efficiency.
Speaker Change: Across all three segments. These operating model changes are designed to simplify execution.
Speaker Change: Reduced structural cost and support strategic flexibility.
Speaker Change: Now turning to our first strategic objective to increase capital efficiency and advanced deleveraging in Q1. Following the successful capital raise in January we remained focused on improving cash flow, reducing capital intensity and future deleveraging.
Speaker Change: And any empty, we transitioned several large customers to faster settling fee for service like models.
Speaker Change: These agreements retained performance and cost based payments, while limiting exposure from utilization or member mix volatility as a result collection predictability will improve and several contracts now settled within 90 days or less.
Speaker Change: Compared to prior cycles of six to 18 months, we have demonstrated and improve alignment with our payer partners and a more proactive revenue cycle management.
Speaker Change: As a result in April we collected.
Speaker Change: A large MTO contract receivable from 2024 of approximately $30 million.
Speaker Change: A month earlier than we expected.
Speaker Change: To reinforce capital discipline and governance, we recently completed the final step of our board re composition in April. We also established a strategic alternatives Committee of the Board. This committee is now overseeing the ongoing portfolio and capital review process, including potential divestitures.
Speaker Change: In close coordination with management the board as a whole and external advisors now.
Speaker Change: Now turning to our fifth strategic objective.
Speaker Change: To deliver high impact client centric supportive care.
Speaker Change: Our long term vision is to become the digital infrastructure for supportive care for each segment stand alone or together.
Speaker Change: Operational infrastructure connecting payers providers caregivers and members.
Speaker Change: This allows motive care to unify fragmented benefit and deliver a coordinated member experience across in home virtual and community based services.
Speaker Change: This approach positions us to meet the health care system, where it is going into the home.
Speaker Change: More preventative did.
Speaker Change: Digitally enabled and.
Speaker Change: And increasingly centered around the member improving satisfaction and lowering the cost of care.
Speaker Change: Also differentiates us in a fragmented market not just through our service breath, but through our ability to coordinate care efficiently at scale.
Speaker Change: Now turning to our consolidated first quarter financial results.
Speaker Change: Revenue for the quarter was $657 million.
Speaker Change: Down 5% year over year and 2% sequentially.
Speaker Change: The decline was driven primarily by known any empty contract attrition.
Speaker Change: Lower build hours and Tcs and membership turn and monitoring.
Speaker Change: These impacts were.
Speaker Change: Were expected and reflect prior year customer transitions and market dynamics that are now largely behind us.
Speaker Change: Net loss for the quarter was $54 million up from $22 3 million a year ago.
Speaker Change: The increase was primarily due to higher interest expense, which rose to $38 8 million nearly double the prior year as a result of higher borrowing costs.
Speaker Change: On the fully drawn revolver.
Speaker Change: Adjusted net loss was $24 $5 million or.
Speaker Change: Or negative $1 71 per share.
Speaker Change: Which reflects the exclusion of restructuring related costs and amortization of intangibles.
Speaker Change: Adjusted EBITDA came in at $32 $6 million, essentially flat year over year, but down sequentially again in line with expectations.
Speaker Change: Key drivers of the sequential decline included in.
Speaker Change: An $8 million impact from net any empty contract development, reflecting the balance of new wins losses and repricing.
Speaker Change: A $7 million impact from lower EBITDA in Pts and monitoring.
Speaker Change: These impacts were partially offset by improved pricing favorable utilization mix of empty and lower service expense and G&A.
Speaker Change: Okay.
Speaker Change: And any empty revenue of $449 million, representing 69% of total revenue declined 6% year over year due to previously disclosed contract losses.
Speaker Change: Average monthly members declined 19% year over year and 20% sequentially.
Speaker Change: Also utilization from the normalization of health care increased to 12%.
Speaker Change: We have either repriced or in the process of repricing, our full risk contracts, primarily with state clients to better align with current utilization levels.
Speaker Change: These pricing resets are designed to stabilize margin may reduce working capital volatility.
Speaker Change: To that end, we're also redesigning contract terms to accelerate settlement and improved cash conversion. These.
Speaker Change: These efforts are already underway with the goal of achieving more stable cash flow dynamics by 2026.
Speaker Change: Revenue per member per month rose, 16% year over year to 635, and 13% sequentially, a result of stronger acuity mix and pricing update.
Speaker Change: Adjusted EBITDA for mobility was $27 $8 million with a six 2% margin up 50 basis points of year over year and 60 points sequentially.
Speaker Change: Driven by pricing discipline mode optimization and cost structure improvements.
Speaker Change: Pcs contributed $181 $8 million in revenue or 28% of total revenue.
Speaker Change: Revenue per hour rose, one, 1% while service hours declined two 1% due to expected seasonality and localized labor shortages.
Speaker Change: Adjusted EBITDA was $12 $2 million up 9% year over year, driven by structural cost savings and temporary delay in wage rate changes margins will normalize in Q2 as these wage adjustments phases.
Speaker Change: Monitoring contributed $18 $1 million in revenue represented just 3% of total revenue, but 16% of total adjusted EBITDA.
Speaker Change: Adjusted EBITDA was $5 $2 million for a 29% segment margin.
Speaker Change: While revenue was impacted by the planned exit of the Medicare advantage of customer and certain pairs markets Medicaid Lps, that's referrals grew including a 45% year over year increase in Indiana and additional programs launched in new states.
Speaker Change: We are now operating under three active condition based monitoring contracts and continue to progress towards full divesture to readiness, including legal HR and operational separation and advisor engagement.
Speaker Change: Turning to the balance sheet.
Speaker Change: Net contracts receivable rose $109 million.
Speaker Change: Up from $95 million in Q4 due to expected billing timing.
Speaker Change: However, we are already seeing improvement in April we collected $30 million in receivables.
Speaker Change: Approximately two months ahead of contract terms, reflecting improved payer alignment and proactive revenue cycle management.
Speaker Change: We ended the quarter with $116 million in cash and a fully drawn revolver.
Speaker Change: $269 million free.
Speaker Change: Free cash flow was negative at.
That $86 2 million largely due to working capital build from timing of accounts payable contract transition and higher interest expense tied to our capital structure.
Speaker Change: We are continuing to take disciplined action to manage costs drive execution and position the business for long term performance.
Speaker Change: Our strategic priorities remain unchanged.
Speaker Change: Grow and retain core customer relationships.
Speaker Change: Digitize and automate our care actions platform.
Speaker Change: Optimize our operating model for simplicity and scale.
Speaker Change: Increased capital efficiency, and advanced deleveraging and lastly, deliver a high impact client centric supportive care model.
Speaker Change: The objectives guide our operational decisions investment focus and how we evaluate long term portfolio strategy.
Speaker Change: As shared previously we are not issuing formal guidance in 2025. Instead, we are focused on executing against measurable initiatives and communicating progress through clear objective kpis and milestones.
That said, we are executing with urgency and focus improving our business unit performance strengthening our balance sheet and advancing our platform modernization. Our progress is a direct result of the work of our team.
Speaker Change: From caregivers and drivers too.
Speaker Change: Call Center agents engineers and operators.
Speaker Change: Their execution and commitment are enabling us to deliver essential care and build a stronger more connected mode of care.
Speaker Change: We look forward to continuing this momentum and updating you on our progress in Q2.
Speaker Change: Operator, we're now ready to take your questions.
Speaker Change: Thank you well now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
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Speaker Change: One moment, please while we poll for questions.
Peter Chickering: Our first question is from Peter Chickering with Deutsche Bank.
Hey, good afternoon, guys I guess.
Peter Chickering: Just on cash flow from ops working capital was obviously.
Peter Chickering: Pretty big use of cash this quarter.
Peter Chickering: The cash flow burn of $82 million can you just walk us through how we should thinking about cash generation throughout the rest of the year you talked about a 30 million dollar question you guys got.
Peter Chickering: But just how we should be modeling cash flow generation for the year and then looked at it as a $2 million settlement.
Peter Chickering: In the quarter as once you said, that's a charge against a or something else.
Peter Chickering: Yes, Hey, Thanks, Peter I'll start with the 2 million to 2 million wasn't settlement for a legacy case in our personal care business.
Peter Chickering: That would be we cleared up.
Peter Chickering: And then cash yeah, you're on it right for us.
Peter Chickering: Pretty simple.
Peter Chickering: Our EBITDA is driving our cash and then you can see in a good way to kind of walk through this is on page eight.
Peter Chickering: Jack.
Peter Chickering: <unk> will help us walk through the other items and how we look forward and you're seeing now that based on the wins that we had in the mobility side, we had $52 million the legacy losses that we have both had been flushed through.
Peter Chickering: This continued growth within the business as well, it's here utilization for us going up and because of our contract mix.
Peter Chickering: A favorable benefit to us so growth in revenue and contract and.
Peter Chickering: Contracts will add to that EBITDA for the business development growth and then our cost savings you see them here you see the cost savings that we had from prior year Rolling forward Youre seeing the automation cost savings and then we also talked about continue G&A that $25 million would be cut so those will also flow through.
Peter Chickering: And then the changes in PCF, they're kind of coming from from from Covid related payments and monitoring you should expect those to contribute as well. So all the drivers that are controllable are moving in the right direction for us.
Peter Chickering: So then the last component.
Peter Chickering: That is controllable is around working capital.
Peter Chickering: And this is one item that we know we've been talking about for a while right, but now, especially coming out of last year and also because of the great work that our teams are doing around restructuring these contracts.
Peter Chickering: We're becoming much more predictable.
Peter Chickering: And you'll see that working capital need continue to come down each quarter and as we exit into 2026, we should have the majority of our contracts onto the right structure. So that long working capital need will go away.
Peter Chickering: In addition to that and you did see a rise this year this quarter.
Peter Chickering: As we said on the call.
Peter Chickering: Moving contracts and again, we expect that to continue so that a or will come down.
Peter Chickering: So working capital benefit coupled with AAR will have.
Peter Chickering: I feel really good of our ability to generate cash for that.
Peter Chickering: And then of course, you have the taxes and the and the add backs in the add backs rats have come down, it's mainly going to be kind of restructuring and fees. So long.
Peter Chickering: So long story short the benefit that we're driving and making decisions around cost out.
Peter Chickering: And G&A and automation.
Peter Chickering: Coupled with the working capital changes, we expect meaningful proven ongoing cash flow generation as we exit the year.
Peter Chickering: Okay. So I want to follow up on that one.
Peter Chickering: With overall revenue down for four or five 9% year over year and any empty is down six 3% year over year I guess why did your contract receivables in long term contracts.
Peter Chickering: <unk> increased by 17 million I guess I'm trying to figure out how our rate.
Peter Chickering: If revenue is down.
Peter Chickering: How the <unk> is out there.
Peter Chickering: Yes that that revenue that went down for those primarily those two contracts DMA contract and then that Florida contract that rolled off in January. So that's the main driver that we knew about end of last year for that.
Peter Chickering: And we've been increasing since then and I expect them to roll on and the AAR.
Peter Chickering: Completely to do with our contracts that are up on shared risk and those contracts have remaining.
Peter Chickering: And until we've switched Mora, which we've started to now they just grew in accordance with with the way the contracts are structured so it's a disconnect mainly because of the contract mix.
Peter Chickering: And the shared risk contracts not being converted until this quarter and going into next year, which is why <unk> went up.
Peter Chickering: And those items in those areas.
Peter Chickering: Great.
Peter Chickering: I guess in the kind of in the one looking at <unk>. Your total costs were down due to contract losses. Your revenue per member month is up.
Peter Chickering: If it turns up 24% is this just a mix issue that those those those contracts for losses, it will be shifted around the mix there or is it something else.
Peter Chickering: Is happening there and as we model this thing out for the rest of the rest of the year.
Peter Chickering: The right revenue per member and revenue per trip that we should be thinking about for Tony Hawk.
Speaker Change: And then also the contract that you lost that you really can comment I guess any color on sort of why you have to watch that thank you so much.
Peter Chickering: Yeah. So the.
Peter Chickering: The revenue per trip items Youre right. It is a mix change that's the main driver of that for Q1.
Peter Chickering: For us, especially coming out of Covid and as we've been re pricing needs to be in line with the win win structures that we have with our clients I expect our revenue.
Peter Chickering: The mix to stay the same and therefore those those.
Peter Chickering: Per trip metrics to be kind of normal throughout the rest of this year, we will be having as we said, adding new business.
Peter Chickering: And the mix may change, a little bit, but those would be for them for the benefit.
Peter Chickering: And then on the contract would be lost again, we really we want to be transparent around our competitive advantages that we're seeing in transportation.
Peter Chickering: But we also want to be transparent around if something happened.
Peter Chickering: And we lost it.
Peter Chickering: It's one pair that consolidated with another competitor for US we wanted to be transparent around that but that's not representative we have 40 other contracts that are MTO side that we feel that we're in the process of renewing and extending additional pipeline and as we said additional closures.
Peter Chickering: Q1, and I expect that to happen, but at the same time, we did so relative to the wins definitely smaller but at the same time, it's important for us to ensure that our.
Peter Chickering: Continued progress around our account management and client management continues to improve so I expect it will.
Peter Chickering: Great. Thanks, so much.
Peter Chickering: Thanks.
Speaker Change: Thank you. Our next question is from Mike Kotowski with Barrington Research.
Mike Kotowski: Yeah, Hey.
Peter Chickering: Dave.
Speaker Change: I'm going to try to drill down a little bit on the cash flow question.
Speaker Change: Can I ask it real real plainly.
Speaker Change: I think I think you guys have sort of yeah.
Speaker Change: Big debt payments, Inc. I think Q2 and Q4 is that right.
Speaker Change: That's correct Q2 acute okay that was it.
Speaker Change: I'm, assuming that you can't.
Speaker Change: Generate positive cash flow from ops in those quarters I'm wondering I'm wondering a is that true and b. If that is true is there a positive cash flow a possibility in <unk>.
Speaker Change: Q3 thanks.
Speaker Change: Yes, the right way to look at because of the Lumpiness in the debt payments.
Speaker Change: Yes, we manage in cash by a monthly weekly basis.
Speaker Change: And also a quarterly but the right way to think about it is annually because of those lumpiness.
Speaker Change: And you saw the cash that we have on the balance sheet, coupled with what I talked about before around the contract changes and what that's going to do to our working capital.
Speaker Change: And the collection of that are.
Speaker Change: We feel really good and the cash flow generation for where we are.
Speaker Change: Our balance sheet.
Speaker Change: But everything that we're doing right now to ensure that we.
Speaker Change: We have the right level of cash to ensure that we operate as we move through the months and quarters.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: I'm going to try to pin you down one more time is there a positive cash flow quarter in this year.
Speaker Change: Yes.
Speaker Change: You're right on the negative cash flows because of the large debt payments in Q2, and Q4 I won't give you the exact forecast than the other quarters.
Speaker Change: With what we have done in January what we've continued to do what we're expected to do around cost out and automation.
Speaker Change: We're operating that we Shouldnt I feel good about our current position.
Speaker Change: Okay.
Speaker Change: Can we talk a little bit about the strategic alternatives.
Speaker Change: Initiative and just you know.
Speaker Change: Obviously.
Speaker Change: It feels like there is some urgency in this situation I'm just curious I mean do you see something.
Speaker Change: Coming out of that initiative.
Speaker Change: In.
The current year.
Speaker Change: Yeah. So.
Speaker Change: We feel really good about our business is what we've done and at the same time delevering as a top priority for us that's critical to our to our stakeholders. So that's why we are doing it. That's why we look forward to updating you as we as we move through so the urgency is the right level of balance to ensure that we're doing the right thing for all stakeholders.
Speaker Change: So we will sell when it is the right time to sell that's the best thing for again all stakeholders. So there's there's the right level of patience and urgency to ensure that we get the right value at the right time so.
Speaker Change: I'm comfortable with the position we're in and the great work that that each of those businesses are doing it's going to ensure that we get the right value.
Speaker Change: Sure.
Speaker Change: Last one and I'll jump off but.
Speaker Change: In terms of the eye.
Speaker Change: If you mention specifics on the G&A savings were where those are coming from I missed it what can you can you lay out more specifics around where the $25 million.
Speaker Change: Yeah, So it's across the board, but it's primarily within the corporate and shared services.
Speaker Change: Areas.
Speaker Change: As we continue to get more efficient in our operations that are customer facing and drive value for the customer facing improve because of what we've done during the transformation because of the automation, we're able to ensure that we the back office or the extra people that were necessary to call.
Speaker Change: Compensate for some of the stuff, we need we don't need that anymore.
Speaker Change: Because of our efficiencies our focus and simplicity, but it's primarily in the shared service and corporate side that dose those dollars came out.
Speaker Change: Primary primarily labor.
Speaker Change: Yeah, Oh, yeah, Oh, so primarily labor.
Speaker Change: There are there are vendor statement, but we got those earlier, but that 25 that I said is majority of that is labor.
Speaker Change: Okay, Alright, very good thank you great.
Mike Kotowski: Great. Thanks, Mike.
Mike Kotowski: Thank you.
Mike Kotowski: Further.
Mike Kotowski: There are no further questions at this time.
Speaker Change: I would like to hand, the floor back over to Heath Sampson for any closing comments.
Heath Sampson: Well. Thanks, everybody appreciate you joining the call this afternoon.
Speaker Change: I'm really proud of what the team has done.
Speaker Change: And really proud of about weather.
Speaker Change: Whether in the storm coming out of last year. It was an unprecedented time a lot of that behind us and as you can see in Q1, the execution and the progress we made and I really look forward to updating you in Q2 on that continued progress. So thanks again for joining and look forward to talking to you in a few months take care.
Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
Speaker Change:
Speaker Change: Yes.