PharMerica's (PMC) CEO Greg Weishar on Q4 2016 Results - Earnings Call Transcript

| About: PharMerica Corporation (PMC)

PharMerica Corporation (NYSE:PMC)

Q4 2016 Earnings Conference Call

February 24, 2017 10:00 ET

Executives

Berard Tomassetti - Senior Vice President and Chief Accounting Officer

Greg Weishar - Chief Executive Officer

Bob Dries - Executive Vice President, Chief Financial Officer and Treasurer

Analysts

Eric Percher - Barclays

Stephan Stewart - Goldman Sachs

Charles Rhyee - Cowen & Company

Jason Gurda - KeyBanc

Jonathan Young - Bank of America

Robert Willoughby - Credit Suisse

A.J. Rice - UBS

Operator

Good day, ladies and gentlemen and welcome to the PharMerica Corporation Fourth Quarter 2016 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. Berard Tomassetti, Senior Vice President and Chief Accounting Officer. Sir, you may begin.

Berard Tomassetti

Good morning and thank you for joining us for the 2016 fourth quarter and full year results conference call. On the call with me today are Greg Weishar, Chief Executive Officer and Bob Dries, Executive Vice President, Chief Financial Officer and Treasurer.

Before beginning our remarks regarding the 2016 fourth quarter and full year 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 maybe found in our annual report on Form 10-K. Copies of our annual report on Form 10-K 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. The 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-K. We have made available to you our press release and our Form 10-K. 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.

Greg Weishar

Thank you, Berard and thank you all for attending. First off, I would like to welcome Bob Dries, our new CFO. This is Bob’s first meeting earnings call at PharMerica. And I think most of you know Bob has a strong background in the institutional pharmacy services business. And he is an important addition to the PharMerica’s executive team.

As we reported in this morning’s earnings release, PharMerica realized strong sequential quarterly growth in revenues and earnings in both the core institutional pharmacy business and the diversified pharmacy businesses. During the quarter, the company completed two institutional pharmacy acquisitions Express Care and Stanley LTC Pharmacy primarily serve the fast growing assisted living facility markets in North Carolina and Virginia. With these latest acquisitions, we again this year acquired annual revenues in excess of $100 million.

Looking forward to 2017, we expect to accelerate growth due to several factors. First, we are launching a new initiative that focuses on growing share in the assisted living segment. As most of you know, the assisted living segment is a rapidly growing alternative for seniors needing support with their activities of daily living. They are about 1 million residents currently residing in these facilities and this resident population is growing about 6% per year. As these residents age, demand for comprehensive institutional prescription services grows as well.

Historically, this market was difficult for institutional pharmacies, like PharMerica, to serve, given inadequate reimbursement. Reimbursement was based on prevailing retail rates, which would not support the scope of the services PharMerica provides and this population requires. Over the past several years, in anticipation of this evolving market opportunity, we worked hard to ensure adequate reimbursement, so that we can bring comprehensive pharmacy services to seniors in assisted living. This is an important initiative for the company and we are optimistic we will be successful.

Secondly, we will rely sequential improvement in Medicare Part D reimbursement based on previously contracted rates that we have discussed in the past. Third, we have meaningfully lowered the cost of goods sold due to successful drug purchasing and cost management efforts. Fourth, we will realize the full year benefit of acquisitions we completed in 2016. And fifth, we expect continuous stellar growth in the diversified pharmacy businesses.

Revenue and EBITDA will grow approximately 50% and 25% respectively in these businesses. This robust growth is forecasted, despite headwinds associated with the recently enacted 21st Century Cares Act, which substantially reduced reimbursement for Sub Q IVIG and inotrope therapies. We estimate the Cares Act resulted in a decrease to 2017 EBITDA of roughly $9.5 million. Absent this legislation, year-over-year growth in EBITDA would have exceeded 50%. We anticipate annualized revenues in the second half of 2017 to exceed $1 billion, which is significantly exceeds our previous expectations. So clearly, we are making great progress here.

Now, let me discuss acquisitions. The acquisition pipeline continues to be strong and we are actively pursuing deals in both the LTC, the institutional core and diversified businesses. We have increased the company’s 2017 goal to acquiring annualized revenues of $200 million or greater. This is double the $100 million goal we have pursued over the past several years. This year, we are targeting 70% for diversified pharmacy businesses and 30% for institutional pharmacy businesses. However, given we have several pending transactions we are currently including approximately $5 million of EBITDA related to 2017 acquisitions and guidance.

We have been disciplined buyers over the years and that won’t change and we maintained a philosophy of not chasing earnings at the expense of bad acquisitions. And I think you have noticed we will not overpay in order to get a deal done. Today, this conservative approach has paid dividends as we don’t have systemic issues that burden the balance sheet and limit financial flexibility. We believe we have the capital structure to support the acquisition program for the foreseeable future.

So with that, I will turn it over to Bob to briefly walk you through the financials.

Bob Dries

Thank you, Greg and good morning. Key points regarding PharMerica’s fourth quarter 2016 financial performance versus the third quarter of 2016 are as follows. Revenues increased 4.3% from $512.6 million in the third quarter to $534.4 million in the fourth quarter. The $21.8 million increase in revenues was primarily associated with the sequential 11% increase in the diversified pharmacy businesses. On a sequential quarterly basis, gross profit metrics improved across the board. Gross profit dollars improved $5.2 million, on a revenue increase of $21.8 million. Moreover, our gross profit margins improved sequentially from 15.3% to 15.7% in the fourth quarter of 2016.

SG&A expenses increased sequentially from $53.1 million to $54.8 million in the fourth quarter of 2016, but declined slightly from 10.4% to 10.3% of revenues. Adjusted EBITDA improved sequentially from $31.5 million to $35.6 million in the fourth quarter of 2016 and adjusted EBITDA margin improved 60 basis points to 6.7%.

Interest expense in the fourth quarter of 2016 was $0.2 million compared to $3 million in the third quarter of 2016. This decrease was due to an assessment and adjustment of the company’s mandatory redeemable liability related to a prior acquisition to fair market value as of December 31, 2016 that resulted in a $3.2 million reduction in the liability and a corresponding decrease to interest expense. Absent this adjustment, fourth quarter interest expense would have been $3.4 million. Adjusted diluted earnings per share in the fourth quarter of 2016 was $0.58. Excluding the $3.2 million mandatory renewable interest expense adjustment noted above, the adjusted diluted earnings per share would have been $0.52. And PharMerica finished the fourth quarter of 2016 with approximately $68.4 million of future cash tax benefits, primarily associated with the future deductibility of goodwill associated with acquisitions.

Guidance for the full year of 2017 is as follows; revenue in the range of $2.3 billion to $2.4 billion, adjusted EBITDA in the range of $132 million to $142 million, interest expense of $17.5 million, depreciation expense of $26.4 million and adjusted diluted earnings per share in the range of $1.75 to $1.95. Keep in mind, the full year guidance includes revenue and EBITDA of approximately $100 million and $5 million, respectively, related to pending acquisitions. In addition, the higher interest expense in our 2017 guidance is associated with the recent acquisitions and those pending acquisitions mentioned in our guidance above as well as budgeted potential fed rate increases of 25 basis points in the second quarter and fourth quarter of 2017. Regarding the first quarter of 2017, guidance is as follows; revenue in the range of $520 million to $540 million, adjusted EBITDA in the range of $30.2 million to $31.2 million, adjusted diluted earnings per share in the range of $0.39 to $0.41.

Certain factors contributing to the sequential change in EBITDA and EPS from the fourth quarter of 2016 include; the impact from the Cures Act as previously mentioned by Greg, the delay in timing of new beds, the timing associated with higher payroll taxes in the first quarter of 2017 versus the fourth quarter of 2016 and the above mentioned higher interest expense and depreciation expense.

Thank you. And now, I will turn the call back over to Greg for some final remarks.

Greg Weishar

Before we finish and go to Q&A, I have a few concluding remarks. We remain optimistic when we look at the company’s short-term and long-term prospects. And this view is driven by the following; first, PharMerica has unquestionably the best institutional pharmacy services model in the industry, with customer facing technology that lowers client’s costs and improves the quality of care. As a result, we have seen retention rates improve dramatically over the past several years. And we believe our best-in-class institutional pharmacy service model represents a long-term tailwind to the company, in part fueled by the dramatic forthcoming shift in the aging of the population. Secondly, diversified specialty pharmacy businesses will quickly approach 50% of the company’s total revenues. And in the near-term, may represent the majority of the company’s revenues. More importantly, as we continue to drive EBITDA margins, scale economies are realized. Third, acquisitions will continue to be an important source of growth.

This year’s goal of $200 million reflects more activity in the specialty business. We are comfortable that we are on the right track in our diversification efforts and plan on accelerating our efforts here. We will begin exploring therapies beyond oncology in 2017 and believe continued investment in the specialty marketplace will further position the company for accelerated growth. So in summary, PharMerica is poised to report significantly improved results in 2017. And we are confident the company’s business strategies will drive long-term growth and earnings and shareholder value.

So with that, I will turn it over to – call back over to our operator for Q&A.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] Our first question comes from Eric Percher with Barclays. Your line is now open.

Eric Percher

Thank you. So maybe a question on the 21st Century Cures Act, can you give us a little bit on the mechanics of what work here, is this have to do more with the lack of the professional services fee or is it a change from AWP to ASP, maybe a feel for what’s running through that business?

Greg Weishar

Sure, alright. The 21st Century Cures Act was kind of ramrod it through in the last month or so of the year. And they – we have been following this act for quite a period of time because we were looking forward to having reimbursement from Medicare as part of home infusion. And as that process evolved, we anticipated we were going to see a lot of reimbursement rate in the ASP plus 6 as you mentioned. But that was supposed to be complimented by a service fee. And the service fee out of – was a bit of a surprise because the service fee was deferred until 2021 and for 3 years to 4 years. And so that was a hit. And there is a lot of work going on to try to fix to the bill. And we would anticipate something happening, but probably not for 2017. We certainly don’t have anything in our guidance that would reflect that we are going to get any relief in 2017.

Eric Percher

And so is the key that NASP and the other lobbies try to push for that fee to come from 2021 to maybe it is 2018 or ‘19?

Greg Weishar

That’s the goal and there is a lot of optimism with regards to 2018. But I think we got to be careful about that level of optimism. But the same token, there is considerable amount of support in Congress for that. So we will see what happens. But I think the key for us is it was a $9.5 million hit, it was a bit of a surprise and we are doing everything we can to try to get that fee in place as soon as possible, possibly in ‘18. I think a really, really good opportunity would be in ‘19.

Eric Percher

Okay. And then maybe a follow-up, the commentary around the focus in the assisted living marketplace, I think your commentary was that you are working to ensure adequate reimbursement and it sounds like you have also now maybe at a better position because you have lowered your COGS as well, is that reimbursement separate from what we have seen in your contracting in Part D, what enables that reimbursement and that opportunity?

Greg Weishar

Yes. It’s all tied to our Part D reimbursement, Eric. As you know, we have I think announced last earnings call, we talked about, we renegotiated the majority of our Part D contracts. And as part of that process, it just didn’t happen in one quarter, but over the last 2 years or 3 years, we have been pecking away at trying to get adequate reimbursement on the assisted living and having that type of reimbursement similar to what we would get under long-term care. And I would say that we have been very successful in getting that done and that has positioned us now and we think we can serve that market, which is predominantly Part D.

Eric Percher

Excellent. Thank you.

Operator

Thank you. Our next question comes from Stephan Stewart with Goldman Sachs. Your line is now open.

Stephan Stewart

Great. Thanks for the question. Just wanted to ask on the acceleration on the acquisition front and diversifying businesses, historically I think the last 2 years you guys have done more long-term care, but focus has obviously shifted here and the amount has increased as well, so is this in anyway, an attempt to accelerate that to get to roughly 50% target you guys had pointed to previously as far as diversification goes 50% of total revenue?

Greg Weishar

Well, I think our original goal was 5 years and 50%, if I recall. And what really this reflects is what I indicated earlier in my comments is that two things happen. Number one, we now are greater than 80% shareholder in Onco and we feel like we are pretty much on our way of completing all of the ownership activities around that. Secondly, we are very, I think, satisfied, absent the $9.5 million hit that we just saw, but I think we have our arms around it. We believe we have an adequate operating platform. We have talent in place to support the business growth. And so with that in mind, we think it is a good time and the relative valuations have come down and we think it’s a good time to get a little more aggressive there.

Stephan Stewart

Thanks. That makes sense. I only asked because I know previously you have said that potential acquirer may not be interested until you get the 50% of total revenue there. Just one housekeeping, if I can. Can you bridge the delta between the mid single-digit EBITDA growth outlook and the mid single-digit decline in EPS, I know it’s come up in the past, but just trying to get a sense of what’s driving the EPS decline?

Bob Dries

Yes, sure. Stephan, couple of things, a key and you noticed in my guidance, on the starting with the EPS piece, I provided guidance on the interest expense and the depreciation expense for the year. And to do that to be able to adjust that, in your model, I think will be a bridge to a piece of that gap, that’s going to be a large piece of the bridge. The remaining piece of that will be on the EBITDA side, from the standpoint of where our guidance came in at, in the 132 to 142 range versus the previous estimates. And to Greg’s point, really the bridge on the EBITDA, if you think about that is, the biggest impact there was the $9.5 million impact from the Cures Act. If you look at it, from a positive perspective, the other piece there that was the 5 million, with regards to the pending acquisitions. And when you add those two pieces together, those are the two largest components. But again, I think the interest expense and depreciation expense is the biggest piece as it relates to the EPS.

Stephan Stewart

Great. Thanks for the questions.

Operator

Thank you. Our next question comes from Charles Rhyee with Cowen & Company. Your line is now open.

Charles Rhyee

Yes, hey, thanks for the questions. I just wanted to follow-up on the earlier question around assisted living. If we look back to when Omnicare was in the market, they obviously were looking at the assisted living market earlier and obviously made many attempts there. They never seemed to really kind of realize the opportunity that existed there. What do you think you are doing differently that you can feel you can crack, because I know you guys were a little hesitant earlier on to enter that market?

Greg Weishar

Charles, we have developed a product that we think is going to get some traction there. I don’t want to tell you that one of the things that we have done is we have said, look, this is a unique market, we need to have a unique approach to it, we can’t come in and run the I formation, which would be the classic kind of LTC institutional services. And we have created a model that we believe responds to some of the, I would say, deficiencies that people have articulated in the past with regards to traditional LTC services trying to serve that market. So, that’s one dimension. The other dimension, as I mentioned, is the reimbursement. And the third dimension is which I mentioned I think also as these folks are aging in place and whereas before, maybe 5 years ago, it was very difficult to get 50% of the population to use your services, whereas today, it’s much easier to get 50% of the population to use your services, because they are aging in place and their traditional pharmacy solution is not working as well for them as it has in the past. So there is a lot of dynamics coming together here that we think it’s a good time for us to get aggressive about it.

Charles Rhyee

Given that it’s still a largely Part D population, are you – is the way to capture these people, as they enter the facility, in my understanding was like, if once they move in, they kind of make their own decisions on what they are going to do with pharmacy if they have already kind of start, hey, I am going to continue to go the Walgreens on the street, is that a lost opportunity or how are you looking at sort of – from a patient acquisition strategy, is it going through the administrator of the facility or is it still sort of a family by family kind of event?

Greg Weishar

I would say it’s all the above. I mean, I think you see a lot of dynamics as its part of the issue is, is that some of the folks depending on their age and depending on their health would certainly prefer to use a retail outlet and we know that. And it’s a question more of, we are not going to get a 100% of the patients in any facility, although I would say that some of the acquisitions that we have made here that I mentioned, these folks are pretty adept at getting a high percentage, but it’s regionally – it’s regional – it’s variable at the regional level, but it’s also variable based on the relative health of the population in that facility. So, I think it’s not as – if you go and sign up a facility, you are not going to get the certainty with regards to revenues that you normally will get when you signed up a 100-bed SNF facility. But that being said, there is a built-in growth factor of these folks age, they are going to come over to your service levels and also, there is more beds being – more residents being put in these facilities as these facilities are being built, 6% growth in units per year roughly. So, we like those dynamics and it’s a senior population that we need to be able to serve it. So, we are very – we have done a lot of work, we have done a lot of thinking, we have done a lot of market research. We recognized some of the concerns that you are expressing and we think we are going to be a little more successful than some of the others have been in that segment.

Charles Rhyee

Okay, that’s helpful. And just to follow-up on the other question around the Cures Act, so when you – just to be clear, your guidance or sort of going into it, you have already understood the dimension around, the pricing around ASP it was the – the unexpected part was the deferral on the service side?

Greg Weishar

Right. That was a 12th hour kind of surprise. I think we first caught wind of it in early November. And prior to that, it was assumed that the fee would be a part of the change to the ASP, but as it turns out, that didn’t happen.

Charles Rhyee

So you are talking about some optimism in the industry to get that change, but my guess would be is they deferred that out, because that lowers the scoring on the bill. Wouldn’t that mean that the government has to come up with money to pay for it? So, you know roughly how big in total, not just for you before what that deferral of that for the service fee in aggregate was expected to be?

Greg Weishar

I don’t have that number in my fingertips, but that number is available, Eric and I don’t want to misquote it, but it’s a sizable amount and it fundamentally is, as you stated, that there is going to have to be some offset, but what they did not include in their feet was the increased expense, the increased expense of the patients moving from home therapy to institutional therapy, maybe even the hospital or an infusion suite of some sort, where the costs will be higher. So, that’s the angle that will be used to offset the fee.

Charles Rhyee

I see. Okay. And then my last question, you have said in the guidance include about $5 million of EBITDA from expected acquisitions, is this from like one deal or is this – either looking at your pipeline say, hey, we have a couple that will kind of contribute this and should we be thinking about this part of the back half of the year? And I will stop there. Thanks.

Greg Weishar

No, we are anticipating this in the earlier part of the year and it’s two deals that are slated to close, I think in the first quarter.

Charles Rhyee

Great. Thanks a lot.

Operator

Thank you. Our next question comes from Jason Gurda with KeyBanc. Your line is now open.

Jason Gurda

Hey, good morning. Thanks. Greg, has the sales environment for SNF operator stabilized at all or is it pretty much the same as it was?

Greg Weishar

I would say that we are starting to see – I would say it’s bottomed out, okay. But again, there is still a lot of transactions going on and I would not call it ideal.

Jason Gurda

And then just to clarify on this 21st Century Cures Act, my understanding of it. It looks like the reimbursement cut is just a one-time deal that there isn’t anything that should impact you subsequent to 2017?

Greg Weishar

No, I would think that’s true.

Jason Gurda

Okay. Okay, thank you.

Operator

Thank you. Our next question comes from Steven Valiquette with Bank of America. Your line is now open.

Jonathan Young

Hi, guys. This is Jonathan Young on for Steve. Just back on the acquisition, I guess, how much are you guys, I think given that you are expecting to close in the first quarter, how much of the revenue and EBITDA are you attributing to the acquisitions for your 1Q guidance?

Bob Dries

Yes, for the – Steve for Q1, that deal as Greg said, we anticipate that’s going to close late Q1, so that impact really would be a Q2 event.

Jonathan Young

Okay, great. And then just on the overall 2017 guidance, what are you guys assuming for brand inflation and are there any major generic launches that you guys are considering for 2017?

Bob Dries

Okay. Sure. In our guidance for drug price inflation, the drug price inflation is in the range of around 8% to 9%. And again we are not anticipating any major generic launches in our projections there for 2017.

Jonathan Young

Okay. And just one more follow-up on that acquisition, is that in the specialties space or is it in the core institutional?

Bob Dries

That would be in our diversified revenue business on the specialty side.

Jonathan Young

Okay, great. Thank you. That’s it.

Greg Weishar

You’re welcome.

Operator

Thank you. And our next question comes from Robert Willoughby with Credit Suisse. Your line is now open.

Robert Willoughby

Hi. Greg, you mentioned some reference, some successful drug purchasing in 2016, I don’t think any of my guys, other guys saw that, what exactly did you do there that gave you something?

Greg Weishar

What we have done, this is mainly on the generic side Bob. We went through. We are buying a portion of our generics direct. So we went through around of direct purchasing bids and we lowered our generic costs. So that’s predominantly where that purchasing value came from.

Robert Willoughby

And in inventory build in the quarter, you liquidate that this quarter?

Greg Weishar

Yes. And we obviously pick up some value there on that strategic purchasing on the brand side as well. Yes.

Robert Willoughby

Okay. And what happened on the accounts receivable line item that did pop a bit, so I am hoping you are not giving dollar bills away?

Bob Dries

Yes. The lion’s share of the dollar amount there Bob is related to if you look at the growth in our diversified business, so again as the specialty business grows, again that is driving the bulk of the changed dollars in the accounts receivable balance.

Robert Willoughby

Okay. And lastly Greg, any update on the ABC litigation?

Greg Weishar

No. We – our positions are being taken and the slow process of that, but no news there really to mention, Bob.

Robert Willoughby

Okay, thank you.

Operator

Thank you. [Operator Instructions] Our next question comes from A.J. Rice with UBS. Your line is now open.

A.J. Rice

Hi everybody. And maybe just two broad questions, you touched on a little bit on earlier question, but maybe drilling down specifically, I know – I think last conference call, Kindred just announced they were getting out of the business, so it was all sort of the nursing home business, so it was all sort of new, I guess now that the dust has settled, do you have any sense of – do you have any meaningful exposure, I know Kindred has been divesting for a while and maybe you always retain the business, when they divest, but I m just as if you had looked at that at all and how – is that affecting the 2017 guidance. And I think some of the other big change, restructuring like Golden Living and so forth, does that present opportunity or more challenges for you in any way?

Greg Weishar

Well, let’s start. A.J., let’s start with Kindred. I think you recall we lost all of that business back in 2014. Since that time, we have through these series of transactions we have kind of gone through we picked some of the business back up. And we would be hopeful, but it’s unclear as to who will be the buyers of those facilities from Kindred. Depending on who the buyers are, it’s likely some of that will shake out and we will get some of them back, some of those facilities back. Golden has kind of gone the other way. We have retained some business over the years of Golden as they moved business from us to Alixa. And we still have several – a couple of thousand beds, 7,000 [ph] beds there that depending again, where those facilities – who buys those facilities, it could be on that side for the business that we have in force. We could have some exposure, but again we have some opportunity for the business that currently is served by Alixa that is being sold off. So mix bag, we obviously are on top of all of this and doing everything we can to make sure we understand where the beds and the facilities are going to and as part of the business trying to be opportunistic and also defensive at the same time.

A.J. Rice

When these little blocks of assets change hands, is reevaluating the pharmacy contract typically something happens right away, does it usually happen at year end, any way to characterize that?

Greg Weishar

It normally happens when the transaction occurs, I would say there was a little twist with regards to Golden because some of those transactions are occurring where Alixa has a year left or six months left, something like that, which is not long, really.

A.J. Rice

Right, okay. My other question and there may not be anything here, but it seems like to me there is enough regulatory oversight of the industry, both sides of your businesses that might be something, the administration, is curly put forward that they want to roll back relegation, they want ideas on how to do that, is there anything that you guys have zeroed in on or the industry as a whole, zeroed in on, saying hey, this will be really helpful or take a look at this regulation, anything to share with some of those lines?

Greg Weishar

Well, I think there is a lot of regulations around compounding and things like that, but we would probably have some comments on. But I think the bigger question for us is kickback rules and getting clarity around those. But getting that change would be a monumental task and many people before us have tried it. But I don’t think that regulatory oversight of our industry hits us as much as may be some of our clients or facilities and hopefully there is going to be some improvement in the oversight at nursing homes because quite honestly, there is a lot of arbitrary activity going on with regards to the survey work that has paid for by the federal government, executed at the state level and that’s probably an area where collectively for our industry, there is the most opportunity to improve.

A.J. Rice

Interesting, okay. Thanks a lot.

Operator

Thank you. I am showing no further questions at this time. I would like to turn the conference back to Mr. Greg Weishar, Chief Executive Officer for closing remarks.

Greg Weishar

No more comments here folks. I appreciate as always, your attendance and look forward to next quarter. Thank you.

Operator

Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the program. You may now disconnect. Everyone have a great day.

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