PharMerica Management Discusses Q2 2013 Results - Earnings Call Transcript

Aug. 2.13 | About: PharMerica Corporation (PMC)

PharMerica (NYSE:PMC)

Q2 2013 Earnings Call

August 02, 2013 10:00 am ET

Executives

Dennis Humble

Gregory S. Weishar - Chief Executive Officer, President and Director

David W. Froesel - Chief Financial Officer, Executive Vice President and Treasurer

Analysts

Brendan Strong - Barclays Capital, Research Division

Glen J. Santangelo - Crédit Suisse AG, Research Division

Frank G. Morgan - RBC Capital Markets, LLC, Research Division

Charles Rhyee - Cowen and Company, LLC, Research Division

Robert M. Willoughby - BofA Merrill Lynch, Research Division

Michael John Petusky - Noble Financial Group, Inc., Research Division

Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2013 PharMerica Corporation Earnings Conference Call. My name is Lisa, and I'll be your coordinator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the call over to your host, Mr. Dennis Humble, Vice President, Finance.

Dennis Humble

Thank you, Lisa. Good morning, and thank you for joining us for the second quarter conference call. On the call with me today are Greg Weishar, Chief Executive Officer; and David Froesel, Executive Vice President, Chief Financial Officer and Treasurer.

Before beginning our remarks regarding the second quarter results, I would like to make a cautionary statement. During the call today, we will be making forward-looking statements about our business prospects and financial expectations. We want to remind you that there are many risks and uncertainties that could cause our actual results to differ materially from our current expectations. In addition to the risks and uncertainties discussed in this morning's press release and in the comments made during this conference call, more detailed information about additional risks and uncertainties may be found in our SEC filings, including our annual report on Form 10-K and quarterly report on Form 10-Q. Copies of these documents may be obtained from the SEC or by visiting the Investor Relations section of our website. PharMerica assumes no obligation to update the matters discussed on this call.

During this call, we will be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in our press release and in our Form 10-Q.

We have made available to you our press release in our 10-Q filed with the SEC. In addition, this webcast will be on our website, along with the transcript from this call.

And now, at this time, I would like to turn the presentation over to Greg.

Gregory S. Weishar

Thank you, Dennis. Thanks to everyone on the call this morning for your attendance. We, as always, appreciate your interest in PharMerica.

As you saw in this morning's earnings release, we exceeded expectations for the second quarter of 2013 and delivered solid results. Compared to the second quarter of 2012, adjusted diluted earnings per share increased 26% to $0.44. Adjusted EBITDA increased 26% to $33.7 million. And adjusted EBITDA margin increased 200 basis points to 7.8%. On a sequential quarter basis, we maintained the record quarterly gross margin percent achieved in the first quarter of 19.2%. And in the second quarter, we achieved records with respect to gross profit and EBITDA per prescription dispensed, as illustrated in our second quarter 10-Q. Furthermore, cash flows provided by operations were $26.6 million for the quarter. And on a year-to-date basis, through June 30, 2013, cash flows provided by operations were $74.3 million and represent a 43% improvement over the same period in 2012.

I've mentioned last quarter that we were seeing improvement in client retention. We see that continuing this quarter as well. Excluding Kindred and Golden Living, the percent of beds lost to service and pricing has fallen 22%. And the sales pipeline is growing, and we believe we are well positioned for a strong selling season in the latter half of the year. We are beginning to see the rewards of the hard work and investments we have put into building a scalable infrastructure capable of providing consistent pharmacy services and to improving PharMerica's value proposition. We firmly believe the company is well positioned to aggressively compete in the long-term care pharmacy services market. Given superior cost-containment programs, best-in-class pharmacy services and improved organizational effectiveness, we anticipate continued progress towards our goal of organic growth.

Let me give you an example, RxNow installs. RxNow is PharMerica's proprietary emergency and first-dose medication dispensing system, and installs continue to grow. RxNow is recognized by our clients as a practical and low-cost solution to the med availability challenges in the subacute segment. We expect the RxNow units to more than double over the next year. And we are saving our clients money as we continue to lead the industry in generic utilization. Over 83% of drugs are dispensed generically. Recall this amount fell from over 86% due to the impact of short-cycle dispensing, which started in the first quarter of this year.

Generics have been a big win for our clients. This year, we will see a bit of a pause in brand drug patent expirations, but 2014 and 2015 will usher in another wave of savings opportunity for our clients, when drugs like Nexium, Exelon, Namenda, Abilify and others become generically available.

Speaking of generics, we are making great progress on building out the direct purchasing program we have discussed over the past several quarters. Based on recent bids we received from manufacturers, we have verified previous margin improvement assumptions and are confident we can improve overall purchasing economics. Recall when we renegotiated the Prime Vendor Agreement, we estimated that roughly half of the margin improvement would come from direct purchasing. We expect to begin direct purchasing operations in the fourth quarter. So we should see some benefit this year, and we'll clearly see value over the next several years.

I'm pleased to report that Amerita, the specialty home infusion company we acquired in December 2012, saw impressive growth and sequential operating earnings. Operating earnings improved 50% in the second quarter of 2013 versus the strong first quarter of 2013. Recall we reported that Amerita was accretive to earnings in the first quarter, and we expect the company will be accretive to earnings in the years ahead. We will leverage the institutional pharmacy bricks and mortars to build a national footprint in this market. We will begin pilot operations in the third and fourth quarters of this year. If all goes according to plan, we will open around 5 to 8 markets per year over the next several years. The home infusion market has attractive fundamentals, and we are optimistic this segment will drive growth.

Acquisitions remain an important focus. We continue to pursue deals in the home infusion pharmacy, niche specialty pharmacy and long-term care pharmacy sectors. The acquisition pipeline remains strong, and we are looking at a number of opportunities. Recall we do not include acquisitions in yearly guidance, and today's change in guidance does not reflect any acquisitions.

So with that, I'll turn it over to Dave, who will walk you through the financials.

David W. Froesel

Thank you, Greg, and good morning. I would like to spend the next several minutes discussing our results of operations for the second quarter of 2013.

Revenues for the second quarter of 2013 were $430.8 million and represents a decrease of $27.7 million from the second quarter of 2012 and a decrease of $9 million from the sequential first quarter of 2013. Regarding the quarterly year-over-year decline in revenues of $27.7 million, the decrease is attributable to 459,000 fewer prescriptions dispensed in the second quarter of 2013, and the decline in prescriptions dispensed was partially offset by revenues from Amerita. Amerita was acquired in December 2012 and did not have an impact on revenues for the quarter ended June 30, 2012. Translating the decrease of $27.7 million in revenues into volume and price variances, yields an unfavorable volume variance of $21.3 million and an unfavorable price variance of $6.4 million. As previously mentioned, revenues decreased $9 million for the 3 months ended June 30, 2013, compared to the 3 months ended March 31, 2013. The decrease is primarily due to 291,000 fewer prescriptions dispensed in the quarter. The $9 million decrease is comprised of an unfavorable volume variance of $13.2 million and a favorable price variance of $4.2 million.

The gross profit margin in the second quarter of 2013 was 19.2%, which was equal to the new record established in the first quarter of 2013 of 19.2%. Gross profit margin in the second quarter of 2012 was 16.6%, and the improvement in gross profit margin for the second quarter of 2013 versus the second quarter of 2012 was largely attributable to the company's purchasing strategies.

SG&A costs in the second quarter of 2013 were $55.5 million, compared to $54.9 million in the second quarter of 2012. The increase in SG&A is primarily attributable to the acquisition of Amerita in December of 2012. However, on a sequential basis, SG&A cost decreased $1.2 million due to lower labor cost.

Provisions for doubtful accounts in the second quarter of 2013 were $5.2 million or 1.2% of revenues, $6.2 million or 1.4% of revenues in the second quarter of 2012 and $5.3 million or 1.2% of revenues in the first quarter of 2013. The decline in the provision for doubtful accounts versus the second quarter of 2012 was due to improved collections. Furthermore, the company's DSOs were 41.9 days in the second quarter of 2013, compared to 45.4 days in the second quarter of 2012 and 41.8 days in the first quarter of 2013.

Adjusted EBITDA for the second quarter of 2013 was $33.7 million compared to $26.7 million for the second quarter of 2012. Furthermore, adjusted EBITDA margin percent improved 200 basis points from 5.8% in the second quarter of 2012 to 7.8% in the second quarter of 2013. The improvement in adjusted EBITDA margins is primarily attributable to the company's strategic purchasing initiatives.

In addition, adjusted diluted earnings per share for the quarter was $0.44, compared to $0.35 in the second quarter of 2012 and $0.46 in the first quarter of 2013. The improvement in adjusted diluted earnings per share on a year-over-year basis of approximately 26% was attributable to the improvement in gross profit and Amerita's strong second quarter 2013 contribution to the company's earnings. The $0.02 decrease in adjusted diluted earnings per share on a sequential basis is primarily attributable to a $9 million decrease in revenues.

Cash flows provided by operations for the first 6 months of 2013 were $74.3 million or a 43% improvement, compared to the $51.8 million for the first 6 months of 2012. The 43% improvement in cash flows, provided by operations, was attributable to higher earnings and an improvement in networking capital.

One additional comment I would like to make regarding cash flows. PharMerica has approximately $117 million in tax-deductible goodwill, which represents a future cash flow benefit of approximately $40 million. That is, this is an asset which needs to be factored in to the value of the company.

And last, a few important comments regarding guidance for the full year. Our new guidance for revenue is $1.625 billion to $1.675 billion. This range reflects the timing associated with the movement of the Golden Living facilities to their in-house pharmacy, the transfer of Kindred homes and organic activity. Furthermore, we are raising our previous guidance for adjusted diluted earnings per share, which was $1.39 to $1.55, to our new guidance of $1.55 to $1.60. With respect to the third and fourth quarters of 2013, the fourth quarter will be the higher of the 2 remaining quarters due to better terms previously negotiated early in the year with AmerisourceBergen that will benefit our drug cost structure commencing in the fourth quarter of 2013.

And last, our cash flows from operations forecast for the full year 2013 is $85 million to $95 million. As I've previously mentioned, actual cash flows from operations for the first 6 months of this year was $74.3 million. The primary reasons that cash flow from operations will be less in the second half of the year is due to a higher level of strategic purchasing initiatives in the second half of the year and a higher level of estimated tax payments in the second half of the year. Furthermore, the third quarter cash flow from operations will be the higher of the 2 quarters.

Thank you. And now I'd like to turn the call back over to Greg for some final remarks.

Gregory S. Weishar

Thanks, Dave. Turning towards the second half of the year and 2014. In light of the Kindred contract situation, the company is in the planning phase of aligning its cost structure with projected revenues. We will provide an update on the status of that plan by the fourth quarter of this year. We remain optimistic we'll be able to protect shareholder value in the near term as we manage through the loss of volume.

Once again, based on the latest information available, the final rule on AMP has been delayed. I know some of you get a little anxious about that. The new date is now projected to be early 2014. I continue to believe that given all the repeated delays that it's unlikely we will ever see the regulation implemented. We'll just wait to see what happens. But in any event, again, we see this worst case as neutral.

So in summary, we're making solid progress across multiple fronts, improved sales and retention, improved purchasing economics, strong performance by Amerita and a fertile acquisition pipeline. We are confident our business strategy is sound that we are executing our initiatives to drive performance. The company is on solid footing.

I'll now turn it back to the operator for Q&A.

Question-and-Answer Session

Operator

[Operator Instructions] Your first question comes from the line of Brendan Strong with Barclays.

Brendan Strong - Barclays Capital, Research Division

I guess, I wanted to start off here with maybe the Golden Living and Kindred contract. I just want to get a sense for where things stand because it seems like you lost maybe 18% of the Kindred business sequentially, which I think was due to divestitures. But I just want to get a sense if that's right.

Gregory S. Weishar

I'm not sure what the 18% is. But I think we indicated that there were about 5,500 beds that were being divested by Kindred. You're talking about 2013, Brendan. I want to make sure. Correct?

Brendan Strong - Barclays Capital, Research Division

I am, yes, yes, yes.

Gregory S. Weishar

Okay. And so we saved through look and correct, so to speak. We kept over 60% of those. So some of those beds we lost were related to contracts that were exclusive. So as an example, if a buyer of those beds had a pharmacy that was exclusive, they would transfer to that pharmacy. So we thought we did a pretty good job there, a little above 60%. We were -- it was above our initial thoughts that we were looking at, which was around 50% of those beds we thought we could keep.

Brendan Strong - Barclays Capital, Research Division

So you've got pretty good visibility at this point you'll hold on to that 60% of the business.

Gregory S. Weishar

Yes, absolutely. And that, obviously, is part of the upside, as Dave indicated.

Brendan Strong - Barclays Capital, Research Division

Okay. And then -- so I guess, how do we think about the Golden Living decline? I mean, I was initially thinking it was down maybe 10% to 20% sequentially. But I'm just trying to get a sense for -- when I look at your guidance, the revenue guidance in the back half of the year implies a decline of 8% to 13% versus the first half, which would seem to make me think that the guidance assumes most of the Golden business is lost. But I'm just trying to figure out if that's the right way to look at it.

Gregory S. Weishar

You can start from that point and work forward. But look, at the end of the day, Golden has given us a revised estimate. We have included that revised estimate into our projections. And we gave that revised estimate a little bit of handicap because it's been uncertain as to clearly what was going to happen there. Kindred -- or excuse me, Golden originally had a more aggressive schedule for taking that business away. And part of the ability of us to raise guidance is that schedule has become less aggressive.

Brendan Strong - Barclays Capital, Research Division

But are they -- I guess just one follow-up on that. Are they still saying that they plan to in-source most of that? Or is that changed?

Gregory S. Weishar

I think that's getting a little too close to discussions that we've -- that we should not have on the airways here.

Brendan Strong - Barclays Capital, Research Division

Okay, great. And then just maybe one last question for me. Again, it's a guidance question. But when you look at the $0.90 in the first half of the year, right, and then it implies $0.70 in the back half of the year, I'm trying to figure out if $0.70 is a good run rate to think about your earnings going into 2014, in terms of above $0.40 going into 2014 or if you're trying to position that as conservative guidance for the year.

David W. Froesel

Well, regarding for the back half of the year, what we factored in, as Greg previously just mentioned, the schedule that we received from Golden in terms of the transfer of beds to their in-house pharmacy, combined with the Kindred transfers and looking at our own organic activity, both on wins and losses and also, just as important, Brendan, regarding our guidance for the second half of the year, is, as you well remember, we're going to receive a benefit from a lower cost structure with our AmerisourceBergen contract starting on October 1. So we've taken all that into consideration in terms of our guidance for the back half of the year.

Operator

Your next question comes from the line of Glen Santangelo with Crédit Suisse.

Glen J. Santangelo - Crédit Suisse AG, Research Division

Greg and David, I just want to talk a little bit more about the gross margin strength, obviously, again, another good quarter, and I know that's in part driven by the recent acquisition. And I think David, if I heard you correctly, you talked about some of the company's purchasing strategies and potentially in the fourth quarter this year, you get some incremental benefit driven by your Amerisource Prime Vendor Agreement. I was wondering if you could sort of elaborate a little bit more in terms of what some of those purchasing strategies are? And are you going to get some other incremental benefit coming later this year?

Gregory S. Weishar

Look, I'll answer that, Glen. We clearly are going to get some incremental benefit as we move forward into the fourth quarter. And that benefit takes -- is in the form of both the Prime Vendor Agreement, as well as the purchasing strategies that we've talked about. As to what those purchasing strategies are, I think it best be left to our own company employees as to what we're doing there.

Glen J. Santangelo - Crédit Suisse AG, Research Division

Is it something incremental within your contract with Amerisource that's going to give you better purchasing starting in the fourth quarter this year? Is there some type of step function in the contract?

Gregory S. Weishar

I think that -- yes. The answer is yes.

Glen J. Santangelo - Crédit Suisse AG, Research Division

Okay. All right, I'll leave it then. Then the second question I had was, obviously, you said you're going to comment on Golden Living and the Kindred losses and what the company's plan is around that. But I'm just trying to get a sense as I think about looking forward, I mean, how do you rationalize that footprint on your cost structure? I mean, do you feel like there's a lot of cost that can be removed? Or is the bulk of it more fixed than you have some leverage issues to contend with? Or do you think there's really things you can do to minimize the impact?

Gregory S. Weishar

We think there's a lot we can do to minimize the impact, some of which is cost -- aligning our cost with our revenues and volumes, but also driving sales and looking at acquisitions. So there's a number of approaches that we are looking at and taking. And again, I think we can manage through this.

Operator

Your next question comes from the line of Frank Morgan of RBC Capital Markets.

Frank G. Morgan - RBC Capital Markets, LLC, Research Division

A couple of questions, going back to the RxNow, you mentioned the growth in the number of installs you'd have. I was curious if you could elaborate on actual the number of installs and how the mechanism is related to that?

Gregory S. Weishar

We probably, today -- and again, this is pretty fluid, Frank. We're roughly, today, 175 to 200. We have in our pipeline over another 150 or so. And I think that you've got to put that into context that not every facility that we have needs one of those, okay. So we're really happy with the demand that we have seen for that product, and we're even more happy about the performance that we've seen for that product. The product works. It's very inexpensive. And it's becoming a -- kind of a staple for the facility that has a high acute -- or excuse me, a high volume of subacute patients.

Frank G. Morgan - RBC Capital Markets, LLC, Research Division

Right, second question on the specialty study. Do you feel like, absent any additional acquisitions, do you feel like you're sort of at a normalized or steady-state run rate in terms of margin and EBITDA contribution on that business? Or do you still see upward runway of growth of the profitability there?

Gregory S. Weishar

Well, we should see margin improvement, as Dave indicated, as a result of the PVA agreement and also as a result of some other cost savings programs that we're doing that will affect our gross profit. So I think that we still should see upward momentum.

Frank G. Morgan - RBC Capital Markets, LLC, Research Division

All right. And then one last one, you touched on this slightly on the cash flow from ops. Just any more commentary about the inventory like that was a big use of cash in the quarter. And that's all I have.

David W. Froesel

We're glad to answer that question. We are looking at our inventory situation in the second half of the year. And excluding any strategic purchasing initiatives, we are looking at aggressively taking our inventory levels down from where they have historically been.

Operator

[Operator Instructions] Your next question comes from the line of Charles Rhyee with Cowen.

Charles Rhyee - Cowen and Company, LLC, Research Division

Maybe stepping back, Greg, and just looking at the bigger picture with Golden kind of going in-source, Kindred obviously moving to competitor, can you talk about sort of how you see the competitive landscape here, not only between other long-term care pharmacy providers but the trend, whether it's in-sourcing or not at the customer level? And maybe even discuss any concerns you have for how they compete maybe on a national scale, that would be helpful.

Gregory S. Weishar

Sure, the competitive landscape, I would say, is becoming more rational, if that's the right word. We're not seeing as much behavior pricing -- adverse pricing behavior that we have been seeing over the last couple of 3 years. I think some of the regulatory pressures are starting to deter that negative pricing behavior. And we're also seeing that the regionals are struggling to maintain their presence in their regional markets for a number of reasons. Most fundamentally, it's because they are struggling with growth as well. And so from that standpoint, we see, on acquisition landscape, it remains fertile. And our ability to operate on a national basis is -- I think we will -- we have roughly, I don't know, 40-something states. We serve over 90% of the population within 100 miles of where we -- where our pharmacies are. So I think from that standpoint, we do have a national platform. And we'll continue to have a national platform. The real issue there is that there's not that many national players. And if you look at it, I don't -- I can't really think of one national player in terms of Kindred, Golden, anyone else you want to speak of. They are multi-regional, but they're not national. So we're positioning ourselves, and we've been working very hard over the last 5 years or so to build a scalable platform that has consistent service no matter if you're in Kansas City or Boston. And we have achieved that. And so we think that makes us particularly attractive to change. Whether those changes will be national -- or excuse me, regional, multi-regional or local.

Charles Rhyee - Cowen and Company, LLC, Research Division

That's helpful. Marrying that with sort of your comments earlier that you've got to align the cost structure as you wind out of Kindred here, does that include taking out pharmacies out of the network? And what's your -- what's the challenges as you do that, the risk not being able to manage sort of the -- like the super-regional clients as you do that?

Gregory S. Weishar

I don't want go on, on what we're going to do. I mean, that's clearly a possibility that we'll close 1 or 2. But to the extent that, that would happen, it would not be solely related to the Kindred decision.

Operator

Your next question comes from the line of Robert Willoughby of Bank of America Merrill Lynch.

Robert M. Willoughby - BofA Merrill Lynch, Research Division

Dave, just a comment on -- clarification on the inventory. I thought you said you wanted to get to back to historical levels, but I'm having a hard time figuring out what historical levels are. There seems to be a -- kind of a regular $30 million flux there. What is the run rate for inventory in your mind?

David W. Froesel

Regarding the inventory, Bob, it will be what I would describe in some quarters, lumpy versus just a normal quarter. And the lumpy quarters -- or the higher inventory quarters are going to be associated with strategic purchasing initiatives. What we're doing is we're looking at all of our inventory in terms of how many days on hand do we have today across our pharmacies. And we're resetting a lower days on hand target that we expect the pharmacies to get to by the end of this calendar year. So net-net is we're working on bringing down what I would describe as our core inventories down to a lower operating level than they've done in the past.

Robert M. Willoughby - BofA Merrill Lynch, Research Division

Okay. And things like Kindred or Golden Living, there were no, like, minimum inventory requirements or anything, any hurdles you had to meet in that respect, were there?

David W. Froesel

No.

Operator

Your next question comes from the line of Mike Petusky of Noble Financial.

Michael John Petusky - Noble Financial Group, Inc., Research Division

Greg, I guess you described the M&A pipeline as strong. And I know it's not included in your guidance on the second half. But just, I guess, at a peripheral level, are you hopeful or expectant that you guys can get something done before year end?

Gregory S. Weishar

Yes. I mean, that would be our goal. And I think I just got to leave it at that. Obviously, I don't want to put myself in a situation where I have to do a deal. So I think that's -- but certainly, there is enough opportunities that we're looking at that it would be reasonable to expect, although I can't guarantee yet that we would see a deal by the end of the year.

Michael John Petusky - Noble Financial Group, Inc., Research Division

Are you seeing more -- just in terms of raw number, are you seeing more on the infusion side that you're looking at or more on the institutional pharmacy?

Gregory S. Weishar

We're seeing a number of opportunities across the board.

Michael John Petusky - Noble Financial Group, Inc., Research Division

All right, great. On Amerita, obviously, that's a different business for you guys, an exciting business for you guys. I mean, how much do you feel like you've learned? How far into the integration of that business are you? Can you just kind of speak about your early experience with that business?

Gregory S. Weishar

Well, yes. Those folks that are running the company, Jim Glynn and his team, are doing a great job there. They're hitting their numbers. And in the period since we've owned them, we've been working on integrating some of our operations in order to get in a position to pilot and execute our strategy around getting value out of our bricks and mortars and bringing value to Amerita. So we've been doing that. And we're poised and ready to go. We're going to open up a couple markets here in the near-term. And we're going to see how those go. And if they go according to the -- in terms of performance, in terms of the way we think it will go, we should be in a great position to leverage Amerita's business model. As far as Amerita's market, the home infusion space, we see that as a very attractive market, both in the near term and particularly in the longer term.

Michael John Petusky - Noble Financial Group, Inc., Research Division

Absolutely, great. Jumping over the your direct purchasing. I'm just trying to -- with the noise around Kindred and Golden Living, I'm just trying to get a sense, how quickly will the direct purchasing program impact 2014? I mean, do we start to see some impact in the first half there? Or is that kind of early in terms of those programs bearing fruit?

Gregory S. Weishar

Well, I think you'll see it in the first half. In fact, I think I mentioned in my comments that we're anticipating to see some effect. It may not be a lot, but we're going to have this thing running by the fourth quarter in terms of buying and procuring inventory and pretty much have all of our manufacture contracts in place. We have our distribution contract in place, not the PVA, but the independent distribution model. And we're definitely going to see value from that effort in the first quarter of 2014.

Michael John Petusky - Noble Financial Group, Inc., Research Division

Okay. I had assumed that most of that fourth quarter commentary was just around AmerisourceBergen, separate from...

Gregory S. Weishar

It's an addition to. That's fair. It's an addition to.

Michael John Petusky - Noble Financial Group, Inc., Research Division

Okay. So both of those will have some impact in Q4 and certainly, direct purchasing will be meaningfully up and running in -- by Q1?

Gregory S. Weishar

Yes.

Operator

There are no additional questions at this time. I would now like to turn the presentation back over to Mr. Greg Weishar for closing remarks.

Gregory S. Weishar

I would just like to thank you again for your interest in our company. And thank you for attending and taking the time to join our call.

Operator

This concludes the presentation. You may now disconnect. Have a great day.

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