PRA Health Sciences' (PRAH) CEO Colin Shannon on Q1 2016 Results - Earnings Call Transcript

| About: PRA Health (PRAH)

PRA Health Sciences (NASDAQ:PRAH)

Q1 2016 Earnings Conference Call

April 28, 2016 9:00 AM ET

Executives

Colin Shannon - President, Chief Executive Officer

Linda Baddour - Executive Vice President, Chief Financial Officer

Mike Bonello - Senior Vice President, Accounting, Corporate Controller

Analysts

Sandy Draper - Suntrust

Tim Evans - Wells Fargo Securities

Jonathan Groberg - UBS

Allen Lutz - Citi Research

Greg Bolan - Avondale Partners

Operator

Good day ladies and gentlemen, and welcome to the First Quarter 2016 PRA Health Sciences Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today's teleconference is being recorded.

At this time, I'd like to turn the conference over to Mr. Mike Bonello, Senior Vice President and Corporate Controller. Sir, you may begin.

Mike Bonello

Thank you, Ben. Good morning, and thank you for joining us for the PRA Health Sciences first quarter 2016 earnings teleconference. Today, Colin Shannon, Chief Executive Officer; and Linda Baddour, Chief Financial Officer, will discuss our first quarter 2016 financial results and provide an update to our 2016 guidance.

Following our opening comments, we will be available to take your questions. In addition to our press release, a presentation with additional financial information is available on our website at www.prahs.com/investors.

Before we begin, I'd like to remind you that our remarks and responses to your questions during this teleconference may include forward-looking statements. Actual results could differ materially from those stated or implied by forward-looking statements, due to risks and uncertainties associated with our business, which are discussed in the risk section – Risk Factors section of our Annual Report on Form 10-K filed with the SEC on February 25, 2016. Such risk factors may be updated from time-to-time in our filings with the SEC. We assume no obligation to update any forward-looking statements. Certain other financial measures, we will discuss on this call are non-GAAP financial measures. We believe that providing these measures help investors gain a more helpful and complete understanding of our results and is consistent with how management views our financial results. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure calculated and presented in accordance with GAAP are available in our earnings press release and investor presentation included in the Investor Relation portion of our website.

I would now like to turn the call over to our CEO, Colin Shannon.

Colin Shannon

Thank you, Mike. Good morning and I'd like to thank you all for joining the PRA Health Sciences conference call covering our first quarter 2016 financial results. I am delighted to report the first quarter was another strong period for PRA across a whole host of financial and operating metrics.

Service revenues for the quarter were $372.3 million, which represents an increase of approximately 12% year-over-year or 13% on a constant currency basis. Our adjusted net income for the quarter was $34.9 million, an increase of 35% over the same period last year. Adjusted net income per diluted share was correspondingly $0.55, a 34% increase versus the first quarter of 2015. Adjusted net income per share included $0.02 of improvement related to a stronger than forecasted dollar.

Our client base continues to be well diversified with our top five clients representing 42.4% of our total first quarter revenues and our single largest client consisting 9.7% of total revenue during the quarter.

In addition, the size of our customer from small development stage biotech to the large and profitable biopharma and big pharma companies is also diversified and we do not have an overdependency on any one particular type of client. I am pleased to report that from last summer up to now, we have not seen a meaningful slowdown or delay in clinical trial activity among our biotech customers.

Despite the difficult financial markets during this time period, we see no evidence of any cash preservations or diversions away from the clinical development programs that this customer group is conducting. But irrespective of market conditions, with our well diversified and growing customer base, we believe we are in a strong position for sustainable future growth.

New business continues to be robust. For the first quarter of 2016, we booked $476.2 million of net new business awards representing a book-to-bill of 1.28 times service revenues. This is the highest quarterly book-to-bill that PRA has achieved during the past three years.

In addition, our backlog increased 5% on a sequential basis to finish the quarter at approximately $2.6 billion. As a result of our solid performance, we are raising our diluted adjusted earnings per share guidance for the current year to a range of $2.41 to $2.48, compared to our previous guidance of $2.32 to $2.42 per share. Linda will provide additional details about revised guidance for 2016 later in the call.

During the first quarter of 2016, we closed on two significant financing transactions. Firstly, on March 17th, we finalized our offer to purchase $133.6 million of our 9.5% senior notes, which was $58.6 million more than our original tender amount of the $75 million. Our decision to initiate and upsize the tender offer was primarily driven by the desire to continue to reduce the outstanding balance on our higher interest rate debt.

Secondly, on March 22nd, we finalized our $140 million receivable financing agreement with PNC Bank. The proceeds from the receivable financing agreement were used to fund a portion of the senior note tender offer, with the rest coming from cash-on-hand. The financial impact of entering into these two transactions will positively impact our 2016 adjusted net income per share by $0.69 depending on outstanding balances and changes in the interest rate environment.

It should be noted that our original guidance provided on February 25, 2016, included an estimate of $0.03 to $0.06 of interest expense savings, as we anticipated closing these two transactions. As a result, only the difference will be included in the revised guidance I referred to earlier.

Finally, I would like to take this opportunity to thank our staffs for their continued commitment to PRA Health Sciences. We are very proud of the robust financial results we have achieved in the first quarter of the year and also, once again the great representation our staffs had at the finals of the PharmaTimes Clinical Researcher of the Year, Americas, we had sixteen finalists and once again, we were actually achieved the CRO of the Year title.

So, but over and above that, there was three different opportunities where we were working with clients to strategic partnerships and we had three finalists and PRA along with three separate clients were placed first, second, and third and I think that's a great testament to the synergies we create working with clients in partnership and we are very, very proud of that achievement.

I would now like to hand the call over to Linda Baddour, our Chief Financial Officer, who will go through our quarterly financial results in more detail.

Linda Baddour

Thank you, Colin. Good morning, everyone. As Colin mentioned, for the first quarter ended March 31, 2016, our consolidated service revenues grew approximately 12.2% at actual foreign exchange rates and 13% on a constant currency basis. For the first quarter, we reported $372.3 million of service revenue, compared to $332 million for the same quarter last year.

In addition, on a sequential basis, revenue grew 3% at actual foreign exchange rates. In the first quarter of 2016, direct costs were $243.5 million, compared to $219 million in the prior year. Direct costs were 65.4% of service revenue in the first quarter of 2016, compared to 66% during the first quarter of the prior year.

On a constant-currency basis, our direct costs increased by $32.5 million, as we continue to hire billable staff to support our current projects and additional staff in anticipation of our growth. This increase in our cost base was offset by a favorable foreign currency effect of $8 million.

On a constant currency basis, our direct costs were 67% of service revenue in the first quarter, compared to 66% during the first quarter of the prior year. For the first quarter 2016, SG&A expenses were $64 million or 17.2% of service revenues, compared to 18.3% of service revenue during the first quarter of 2015. The decrease in SG&A, as a percentage of service revenue is primarily related to our continued efforts to effectively manage our overhead functions.

In addition, during the first quarter, we incurred $28.9 million of transaction-related costs. These costs were associated with the closing of the secondary offering and the related accelerated vesting of performance stock options and professional fees incurred associated with the secondary offering and the receivables financing agreement. Compared to the prior year, first quarter 2016 adjusted income from operations grew 22% to $61.7 million, a margin of 16.6%, up 140 basis points due to the strength in our underlying business and the continued leverage of our SG&A functions.

Adjusted net income, which excludes certain items, whose fluctuations from period-to-period does not necessarily correspond to changes in our operating results was $34.9 million in the first quarter, representing growth of 35.2%, compared to the previous year.

Contributing to the adjusted net income growth were increased service revenues, improved operating margins and a lower effective tax rate, driven by geographic dispersion of our pre-tax income. Adjusted net income per diluted share grew 34.1% to $0.55 per share in the first quarter, versus $0.41 per share in the period a year earlier.

Cash provided by operations was $2.7 million for the three months ended March 31, 2016. Adjusting for the cash impact of the costs incurred in connection with our bond tender of $17.8 million, cash provided by operations was $20.5 million for the three months ended March 31, 2016, compared to cash provided by operations of $3.4 million for the same period of 2015. The increase in operating cash flow was a result of increased earnings during the current year and operational performance improvements made throughout the last twelve months.

Capital expenditures were $8.1 million for the three months ended March 31, 2016, compared to $7.6 million during the same period of 2015. The slight increase in capital expenditures reflects our ongoing investment in information technology. Our cash balance was $97.6 million at the end of first quarter, of which $28.3 million was held by our foreign subs.

Net debt outstanding defined as total debt less cash and cash equivalents, at March 31, 2016 was $802.8 million, compared to $875 million at March 31, 2015. The overall reduction in our net debt is attributable to repayments made during the second half of 2015 and an increase in the amount of cash-on-hand and the impact of closing the tender offer Colin referenced earlier on the call.

Regarding the geographic concentration of our revenues, 61% of our service revenues are earned in North America, however, approximately 82% of our client contracts are denominated in US dollars, while 15% are in euros. At March 31, 2016, 61% of our total expenses were denominated in US dollars, 15% in Euros, and 7% in British Pounds. Our remaining expenses are incurred in Asia-Pac, Russia or Latin-American currencies.

Now let's turn to our 2016 guidance. With the strong results achieved in the first quarter and the upsize of our bond tender, we have raised our guidance for diluted adjusted earnings per share to be between $2.41 and $2.48 per share. This guidance incorporates the impact of upsizing the bond tender and entering into the receivable securitization agreement and compares to our previous guidance for diluted adjusted earnings per share of between $2.32 and $2.42 per share.

We are maintaining our estimate for service revenues of $1.53 billion to $1.57 billion, representing a constant currency growth of 11% to 14%. We are also maintaining our guidance for annual effective income tax rate of approximately 28%, which as we previously disclosed incorporates various corporate tax initiatives that we have been implementing over the past couple of years. Our guidance assumes a Euro exchange rate of 1.14 and a British Pound exchange rate of 1.45. All other foreign currency exchange rates are as of April 1, 2016.

Regarding our GAAP guidance, due to the one-time expense incurred this quarter, we are lowering our diluted GAAP earnings per share to be between $1.08 and $1.15 per share. This compares to our previous guidance of $1.56 and $1.66 per share.

Thank you. And that concludes our prepared remarks at this time. We'd be happy to take your questions.

Question-and-Answer Session

Operator

[Operator Instructions] And our first question comes from the line of Sandy Draper of Suntrust. Your line is open. Please go ahead.

Sandy Draper

Great, thanks very much and congratulations on a solid first quarter.

Linda Baddour

Thank you.

Colin Shannon

Thank you.

Sandy Draper

First, I guess the question Colin, is, it’s just from a broader competitive perspective, you guys are clearly doing very well and I would say, performing some of the best around the industry. Do you think that when you look at where you are gaining share, is it from the other top CROs? Is it that you and other top CROs are gaining from the smaller players or more gains continuing to gain more outside of the – and you are taking business away from inside of pharma that's going outsource more? Just love to get your thoughts on where you think you are seeing all the gains?

Colin Shannon

That's quite a difficult question to answer because, every sort of opportunity is generally in a competitive situation and we are never against the same CROs in all of the situations, so we can't say that we are winning share against any particular CRO. We are certainly noticing that, we've got a very, very robust RFP flow and we've already – actually had started off the quarter exceedingly well. So it's not just last quarter what kept the momentum going into Q2. So, we are seeing very strong signs for the – for our company. And I don't go dwelling too much on where it's coming from. We just continue to try to make sure that we deliver for our clients. We work well with them in partnership and we provide good solutions and high-quality deliverables.

Sandy Draper

Okay, that's helpful and so maybe just one slightly different way to ask it, in terms of the wins you are getting now, when you think about where you were a couple years ago, sort of common themes about what people are saying, why they are selecting today that they may not have been choosing you two, three years ago?

Colin Shannon

I think a lot of the things we've done on the innovation and using of data has started to resonate with the clients. It's taken a while for them to realize the investment we have made in the data and the medical informatics has started to come through. I mean, we have been working at it for nine years and we have got better at using the data every year, and it certainly gives us a different - when we're going to bet defensive, but also gives our clients a different opportunity and of a different view of how to conduct the trials. So it's resonating well and we are seeing that it's becoming a big part of it. And I have also focused on certain areas where there are very difficult studies like rare disease where the use of data is really vital to help ensure that we can actually help identify where these – where patient populations are and so that's a lot of work that we are being doing in these areas. And of course, we just make sure that we’ll continue to hire really good quality people. In Q1 alone, I mean it's always one of our toughest quarters. But we have been ensured that we maintained good hiring, getting ahead of the curve, because we've got a lot of new opportunities not only to win, but to conduct and get delivered on. So it's been, - I think, very strong on lots of fronts.

Sandy Draper

Great, thanks very much, and again, congratulations.

Colin Shannon

Thank you.

Operator

Thank you. Our next question comes from the line of Tim Evans of Wells Fargo Securities. Your line is open. Please go ahead.

Tim Evans

Thank you very much. I appreciate the comments on the client mix diversification, et cetera. I was wondering if you could give us a sense maybe for the trend here. Has there been any meaningful change in the past year in your business mix either in terms of the client segments that it's coming from or in terms of the therapeutic mix? I am just looking for the sense of the change rather than the absolute level.

Colin Shannon

Actually, not really, the client mix is very similar. You know what, our top five may rotate a little bit and then a movement between them, but it's nice to have a number of clients that can actually value for that top situation and the top five and regarding the therapeutic areas, we are still considered very strong in oncology, the same as all other CROs, CNS is strong and - but we you really got to follow where the drug development is taking place and we make sure that we are well equipped to do that and we have recently brought in a new strength and depth in some of our therapeutic areas to help us continue to meet the needs for our clients, not that we are anticipating any significant change, it's just that our clients are now looking to us to get more innovative solutions in certain other areas and we want to make sure we've got the best people to help do that.

Tim Evans

Okay, and with some of these more complex therapeutic areas in oncology, CNS, et cetera, are you seeing it take a little bit longer to start-up these studies? Is this some comments that we've heard from some of your competitors and I am just curious if you are seeing that too, just taking a little longer to recruit patients, et cetera?

Colin Shannon

I've not really noticed a discernible difference than this time last year or the year before. I mean, it's always been difficult. A lot of it, the time is the - they can cause delay as time from award to actually getting started. That’s sometimes and, if the client is not quite ready and that's really a matter of when is the right time to take the new award into backlog. I mean, as you are looking through these things with clients, you are there to help them and sometimes the protocol needs a little bit of adjustment. But if they are not quite ready, I mean, that can cause delays. But once you start, I mean it's the same speed as you are, you've got to get all your investigators involved. You've got to get through all your regulatory approved – make these approvals. So there has been no major significant change, maybe the enrollment rates and the number of sites, there is a little bit more complexity, because we know and obviously, there is a lot of competing trials and it's making sure that you've got the right sites for that will give the best opportunity to maximize the trial that you are currently working on. So, these are the factors that go into. But I am trying to give you a - answer as possible, but I don't really see the - such a significant changes the others have maybe mentioned.

Tim Evans

Yes, I appreciate that. Last one real quick for Linda. On cash flow, obviously, it's very important and you've made good use of it here. Can you just comment on the trend in DSO? I guess, that's the biggest swing factor. It was up a little bit sequentially, just kind of wondering where you see that going over the balance of the year?

Linda Baddour

Right, as you might recall, Q4 is always our best quarter for collections. So as we start into Q1, you'll see a bit of a slowdown, but we are still very optimistic that we'll be able to repay quite a bit of - this year. So we are not worried about this - our DSO.

Tim Evans

Okay, thanks.

Operator

Thank you. Our next question comes from the line of Jonathan Groberg of UBS. Your line is open. Please go ahead.

Jonathan Groberg

Great. Thanks a million and congratulations on the quarter. Just one quick clarification before I get to another question. What was the FX impact again on margins that kind of went out. I want to make sure we have the right number for that?

Linda Baddour

It was $0.02.

Jonathan Groberg

$0.02 on adjust or …. And I guess, following up a little bit on the last question, can you maybe size your – the backlog that's geared towards oncology? And maybe highlight, is there anything – are you seeing any shifts or changes in terms of the way your customers want these oncology trials run? Whether it's selecting patients based on specific genetic markers? Whether it's wanting more complete genetic information on some of the trial? I'm just curious kind of what you are seeing in oncology kind of stemming from our recent visit to AACR?

Colin Shannon

Yes, it's very difficult to just generalize each trial has got to be customized to suit the type of patient that's involved and so, that's where we have our experts to really look at what is the best ways of getting these patients. And obviously, our goal is to ensure that we get the right patients that can help the client get the data they need and we just look at various ways that we can actually maximize the opportunity for a successful enrollment. So, we think through every single one and yes, there's different ways of doing things, but we – it's not like a general change, it's just that we are trying to be more creative about how we can actually apply data and the use of our scientific expertise to come up with new ways of actually getting high-quality patients on to the trials.

Jonathan Groberg

Okay. And I am sorry, again if I missed it, but would you want to kind of roughly quantify…

Linda Baddour

Have we publishing it?

Colin Shannon

We haven't published since the S1, but right now at the end of the quarter, we have roughly 24% of our backlog is oncology studies and that's in line with where it's been the last couple quarters when compared to last year.

Jonathan Groberg

Okay. Thanks.

Operator

Thank you. Our next question comes from the line of Greg Bolan of Avondale Partners. Your line is open. Please go ahead. Mr. Bolan, please check to ensure that your line is not on mute. And Mr. Bolan appears to be having technical difficulties. [Operator Instructions]

Our next question comes from the line of Garen Sarafian of Citi Research. Your line is open. Please go ahead.

Allen Lutz

Hi. This is Allen filling in for Garen. Thanks for taking the questions. Your cancellation rate has generally been below 3% for the past two years, which is well below what one of your peers has been reporting. Can you just talk about how you think about cancellations in general? And whether or not a level at or below 3% is sustainable longer-term?

Colin Shannon

We - obviously, as we look through – there is always – there are always risks of a client drug is a new either a competing drug gets to market quicker. There is a lot are others no efficacy, there is lots of reasons why a trial can be canceled and you never know which one is going to effect and as part of the issue that you've got to deal with it. Now, again, this is where we talked about our well-diversified portfolio, it’s not just of clients, but the amount of projects that we are doing. It gives that nice portfolio effect that we've got swings and round abouts here. So, for all of our cancellations we're getting contract modifications and in general, the up-scopes in a lot of our programs almost counteract exactly the down-scopes from any cancellations. So we don't report the up-scopes separately, they are just part of new business awards. But – and broadly tangible as we are looking to evaluate it, we can actually see that coming through. There was a few years ago, when it got a little bit out of sync where cancellations were running a little bit higher than up-scopes and it takes more than this revenue-like that’s immediate loss of revenue over a period of time instead of slow ramp up in the beginning of a new trial, whereas, obviously, change of scopes are happening and they are right in the midst of the trial. So, it kind of balances out. So we look at it carefully and we have got a very conservative way of managing by, any time we see an issue on a potential change, we flag it as a high risk. And we will manage the revenue coming from that to make sure it's not going to affect our ongoing revenue forecasts and we try to fill any gaps if there is any impact. So we try to manage it very carefully. So that there is no surprises.

Allen Lutz

Got it. That's helpful. And then, new business awards accelerated in the quarter. Was this from a couple of large contracts or was it more broad?

Colin Shannon

It was broad, but we actually did get some nice awards as well. But it was with key clients that we have been working very closely with and it's been across the board, though, which was nice and - but obviously, I do like to see the fact that it's coming across from many, many different clients.

Allen Lutz

Got it. Thank you very much.

Operator

Thank you. And our next question will be from the line of Greg Bolan of Avondale Partners. Your line is open. Please go ahead.

Greg Bolan

Okay, let's try this again. Thanks guys. So, I guess, how should we be thinking about the mix of bookings over the past four quarters? Just in terms of the types of clinical development services and I don't mean to get into too much minutia here, but just specifically, wondering if the lower outsourced services, like pharmacovigilance has become a harder area, as some of these other areas from site management to medical right into bio-statistical analysis and so on and so on, become more mature from an outsource penetration standpoint.

Linda Baddour

I don't really see – we haven't seen a lot of change in that. I mean, from a – when we do the functional service work, we do see a good demand for PVG. But it's not been a change really over the years and no big increase or decrease. It's been a constant demand and we - it's a very small piece of our business.

Colin Shannon

I mean, we don't offer the large off-shoring type of components, which seems to be others that actually have that. It's something that we continually evaluate and it may be at some point there is a need for us to build an organization that offers that kind of lower cost.

Greg Bolan

Right.

Colin Shannon

But that's something that we actually discussed a couple of years ago, when we were actually with – just acquired by KKR and it was one of our goals in the longer-term to think through that. At the moment, there is no need, but we keep an eye on it for opportunities. But we’ve been sourcing opportunities to acquire some nice – as it could actually be a tuck-in to give us that capability. But until the demand is such that we feel it's long-term and robust and we'll probably just keep an eye on watching the space.

Greg Bolan

Okay. That's fair and then just real quickly lastly, so our industry sort of suggests that business development activity has become increasingly intense within the small to mid-sized biopharma sponsor arena, as larger biopharma sponsors are becoming increasingly mature from an outsource penetration rate standpoint and then this is something that isn't new. It's just something that seems like that has been evolving for the past couple of years. But how is PRA maintaining its hit rate? I am assuming the hit rate is still pretty stable in RFP bake-offs. How are you maintaining that hit rate in a more aggressive marketplace?

Colin Shannon

Well, as I mentioned, we are bringing to creative solutions to the best entities and we have invested a lot in data. And, now, everybody can get data, as you know and it's what you do with it that makes a difference and that's where we have been working on it for many years, just looking to fine-tune it to help us identify better ways of accessing patients. So, we have invested a lot of time and effort, and we've actually bought a lot of data that helps us really build-up this data lake as to give us that level of expertise to help us be competitive. Now when saying that, on the larger biopharma side, as you recall, we do have a strategic solutions offering. We are still seeing that growing at the pace that we thought it would on our IPO and it's nice to see that, we said that this was going be a journey of a number of years of – and we are very, very well pleased that we're executing on that journey and we see a lot of nice runway ahead of us.

Greg Bolan

That's great. Thanks, guys.

Linda Baddour

Thank you.

Operator

Thank you. Our next question comes from the line of Donald Hooker of KUY Bank [ph]. Your line is open. Please go ahead.

Unidentified Analyst

Good morning, guys. That is Jack in for Don. You’ve got another question about the mix of bookings. Some of your competitors over the last couple of quarters have noticed or have called out, in increased wins for functional outsourcing. Is the functional outsourcing still roughly about a third of your business and is that also reflected in bookings over the last couple quarters?

Colin Shannon

I don't think – I mean we don't rate that separately. I mean the last time we actually showed that was on our S1. I mean, we just run the business as combined now. It's not a separate reporting unit. But, all of a function of services is actually included within our numbers just like other CROs do. And so it's obviously, the rate of growth hasn't been the same as our core business. But we are still very pleased with it and it's basically running at the assumptions we made when we were going public. So I think, I am pleased to say that all the things that we’ve said were intact and we are following through and executing on them.

Unidentified Analyst

Yes, so to be clear, there doesn't necessarily seem to be more of an appetite by sponsors to shift more into functional outsourcing versus your kind of core programmatic business. Is that a fair assumption?

Colin Shannon

Well, it all depends how you categorize it, because we have got a slightly stickier option, which is our embedded solutions where we take over functions from the pharma side or the big pharma or the pharma bio. And that, to all intents and purposes could be categorized as functional services, but it’s more to it than that and we are seeing some opportunities in that area. And I think that will be something that our other clients will continue to consider as an opportunity and an option to think about with respect to the core values and outsource more of the operational client clinical trial development works. And so, it's nice to actually have this level of discussion with clients to give them these opportunities to let them think about what they want to do strategically. So what we're seeing some - and we are having discussions, but it's not like a huge trend that's moving in that direction. It's more the strategic view of the leadership of individual companies.

Unidentified Analyst

Got you, thanks and then, and lastly on the subject, have there been any, I guess, revenue synergies that you call out from your acquisition or merger with research pharma?

Colin Shannon

Well, we really isolated them to run and maintain their actual client base. But we are actually starting to see some opportunities develop there over the last couple quarters. So, we do see opportunities and It's nice that – we are all supporting each other and it's great now when we can got to bit defend, we've got the expertise from both parts of the – all companies working together to preside an even better solution. So we are certainly taking advantage of the expertise that we have brought into the company to allow us to bring that to bear to the client.

Unidentified Analyst

Gotcha. Thanks, that'll be all from me. Great quarter.

Colin Shannon

Thank you so much.

Operator

Thank you. [Operator instructions] And I am showing no additional questions in the queue. I'd like to turn the conference back over to Mr. Colin Shannon for any closing remarks.

Colin Shannon

Well, thank you everyone for participating in our call today. If you have any additional questions, please feel free to contact us. And have a great day everyone. Thank you.

Operator

Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program. And you may all disconnect. Have a great rest of your day.

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