Heartbeam Inc (BEAT) 2016 Q2 法說會逐字稿

Good afternoon. Thank you for joining us for the BioTelemetry second quarter 2016 earnings conference call. Certain statements during the conference call and question-and-answer period to follow may relate to future events and expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities and Litigation Act of 1995.

Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company in the future to be materially different from the statements that the Company's executives may make today. These risks are described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report on Form 10-K or 10-Q. We assume no duty to update these statements (Operator Instructions).

As a reminder, this conference is being recorded. It is now my pleasure to turn the floor over to your host, Mr. Joseph Capper. Sir, you may begin.

Thank you, operator, and good afternoon, everyone. I'm Joe Capper, President and CEO of BioTelemetry. As on previous calls, I'm joined by Heather Getz, our Chief Financial Officer. I will start with an overview of our second-quarter performance, Heather will take you through a more detailed review of our operating results, I will make closing comments, and we'll then open up the call to your questions. Let's get started.

I am extremely pleased to report this afternoon that we continue to generate excellent momentum in our business, having just completed another record-setting quarter, during which we surpassed all expectations, posting our 16th consecutive growth period with new highs in volume, revenue, and EBITDA. Looking forward, our guidance suggests we need to continue growing healthcare services at a much faster than the industry and deliver solid results from research services, and that is exactly what we expect to do.

As I have reiterated on numerous calls, we are achieving these outstanding results, both financially and operationally, by adhering to the guiding principles we use to manage the Company. As a reminder, our daily focus is to solidify our leadership position in cardiac monitoring, establish a leading research services business around the cardio core platform, and look to identify markets that would benefit from the application of our wireless platform and proprietary technology.

Our adherence to these principles have been instrumental in generating the consistent growth we have had for more than four years, and you should expect us to stay focused on these same core initiatives going forward. We are confident that if we continue to effectively employ this strategy, we will meet or exceed our full-year guidance. Let's take a few minutes to review some of the Q2 highlights.

During the period, revenue grew by 18% to $52.7 million, exceeding our guidance by approximately $3.7 million. Organic revenue grew by 13%. EBITDA grew by 51% to $11.9 million, far exceeding expectations. Year-over-year quarterly volume was up 7.5%, with MCT volume up 15%. We ended the quarter with $25.4 million of cash, up $2.6 million sequentially. The rollout of CardioKey continued to be an outstanding success story, as we now service in excess of 8,000 patients.

Consistent with our long-standing strategy, we are acquired VirtualScopics in order to expand our research services offering. Our research services team continues to expand backlog and make progress in several critical areas. And we continue to advance business development activities that will create ideational sources of revenue. Let's take a closer look at the components of the business which are driving this success.

In our healthcare services division, we generated greater market penetration with growth in all three major service types: MCT, event, and Holter. As I mentioned a moment ago, overall volume was up 7.5%, with MCT up 15% in the quarter. On last quarter's call, I outlined several factors contributing to our excellent organic growth, from improved messaging and sales force productivity to overall market expansion.

One factor I highlighted is the resounding impact of our comprehensive portfolio approach and how it is providing us with a significant competitive advantage. No other provider in our space can match us in terms of breadth of product offering. Not only do we provide more options, but no other competitor comes close in terms of product performance, an attribute that is becoming increasingly important as more segments of the market demand higher levels of diagnostic accuracy.

As evidenced by last week's announcement pertaining to the FDA approval of our next generation MCOT, this is a strength we will continue to build upon. The new MCOT is a four lead, two channel device in a patch form factor. This system incorporates the same proprietary algorithm and detection capability which have established MCOT as the gold standard among remote monitoring options. Customers will have the benefit of the most accurate and sensitive arrhythmia detection technology in a more convenient, lightweight, easy-to-use patch form factor. We believe this has the potential to improve patient compliance and expand utilization. We are excited about their recent approval and look forward to begin market introduction later this year.

During the quarter, we completed the integration of the ePatch business recently acquired from Delta Technologies. Delta had been one of our long-standing partners working on the development of our next generation MCT platform, which I just discussed. As we move closer to approval and ultimately commercial introduction of this system, we felt it was important to take control of the critical components Delta had developed and capture the associated cost savings that will come with this type of integration.

As part of this transaction we also acquired the ePatch device, an extended wear Holter in a patch format. The addition of the ePatch to our current product portfolio gives us greater flexibility in terms of product offering, domestically and abroad. Healthcare sales continue to benefit from the successful rollout of CardioKey, which has widespread market acceptance, having recently surpassed 8,000 patients served. We also announced another patent related success in our strategy to restrict or eliminate inappropriate activity of certain rogue competitors by seeking enforcement of our intellectual property rights.

On the payer front, CMS published the proposed 2017 Physician Fee Schedule. While there was essentially no change in the national rate for MCOT, there was a minor adjustment to the geographic index component of the fee schedule, which will have a negative impact for us of approximately $2 million in 2017. Given the trajectory of the business, we expect this to have no impact on our strong momentum going forward. With demand for remote monitoring solutions on the rise, our healthcare services business is incredibly well-positioned to continue to outperform the market. Our high organic growth rate, improved margins, new products, and expanded payer coverage are all contributing to the momentum the business is experiencing, and we expect that to continue as evidenced by our guidance.

Turning to research services, during the quarter we took an extremely important strategic step in completing the acquisition of Rochester, New York-based VirtualScopics. As a leading provider of clinical trial imaging solutions, VirtualScopics focuses on oncology, musculoskeletal, and other therapeutic areas requiring centralized imaging services. As we have discussed on numerous occasions, expanding our research services offering has been one of our high priority initiatives aimed at improving the long-term competitiveness of this division. Completing the acquisition of VirtualScopics goes a long way in accelerating this strategy.

The imaging market is growing between 6% and 7% annually and is expected to be approximately $1 billion per year within the next few years. Combining imaging with our cardiac services has already made us a far more formidable competitor. While we still have much work to do in order to fully integrate the two businesses, the market response to the combination has been overwhelmingly positive. The combined team has already achieved significant improvements in both pipeline and backlog, which coincides with the very positive response we've seen from our customer base. Additionally, we continue to make progress expanding the geographic reach of our research business. As I mentioned on previous calls, our newly established business development presence in Japan is producing meaningful results and we continue to look for other expansion opportunities.

In addition to the advancements in our healthcare and research divisions, we continue to invest resources toward further diversification, which I have spoken about on previous calls. We are making considerable progress with our at-home INR monitoring service, which allows us to leverage our current independent diagnostic testing facility and our sales and marketing infrastructure. This year we have begun to more aggressively resource and promote this business and expect INR to be a meaningful contributor to our overall performance.

Our collaboration with Wellbridge Health, a CHF care management solutions company aimed at reducing unnecessary hospital readmissions and emergency room visits, is progressing according to plan. They recently completed a lengthy pilot program which produced a 158% return on investment, far surpassing the initial expectations. And of course we continue to evaluate other opportunities to leverage the core competencies of the Company.

I'll now turn the call over to Heather for a detailed financial review of the quarter. Heather?

Thank you, Joe, and good afternoon, everyone. As Joe just announced, Q2 2016 marked our 16th consecutive quarter of year-over-year revenue growth. Total revenue came in ahead of our expectations at $52.7 million. Healthcare revenue was strong, with an increase of $5.9 million or 16% growth over the prior year. The strength in healthcare resulted from a 7.5% volume increase across all products, with our MCT volume growing by an impressive 15%. Also contributing to the healthcare revenue was the increased Medicare rate which, as expected, added about $1.6 million. Our research revenue increased $2.5 million due to an increase in imaging revenue with the VirtualScopics acquisition. And while the technology revenue declined approximately $0.5 million versus the prior year, we did see an increase sequentially due to the addition of several new customers.

Moving to gross profit, our margin for the second quarter was 62.5%, or a 280 basis point improvement over the prior year. This margin improvement comes from favorable pricing dynamics in the healthcare segment as well as operational and volume efficiencies. These positive benefits were partially offset by the impact of a mix shift due to higher revenue in our research segment, which carries slightly lower margins. We continue to experience strong operating margins post-acquisition. While, as mentioned above, the acquisitions put some pressure on our gross margin, we saw increased EBITDA margin both sequentially and compared to the prior year. We generated adjusted EBITDA of $11.9 million for the second quarter, a 51% increase as compared to our Q2 2015 EBITDA of $7.9 million, a 23% return on revenue. This is our ninth quarter of sequential EBITDA margin expansion.

Now turning to the balance sheet. We ended the quarter with $25.4 million in cash compared to $19 million at year end 2015. We generated $9.3 million in cash from operations and $7.2 million of free cash flow in the quarter. In addition, we used $2.2 million for capital expenditures, largely for additional devices in our healthcare segment. Also to note, we used $18 million in cash to acquire VirtualScopics and the ePatch product. In the quarter we drew $14.5 million from our revolver to fund the acquisitions and working capital. At the end of the quarter we had $38 million of indebtedness, which is less than 1 times our trailing 12 month EBITDA. We expect to continue generating cash from operations, which will give us the ability to pay down the revolver in the second half 2016. As you can see, we have maintained a very healthy balance sheet with our strong cash balance and low debt levels.

Shifting gears, I will now touch on the outlook for 2016 and more specifically on Q3. We have exceeded our expectations for the first half of the year, even when you exclude the VirtualScopics and ePatch acquisitions. With a preliminary launch of our next generation MCOT in a patch form factor and the expansion of our product offerings through our two most recent acquisitions, we are increasing our full-year revenue guidance to approximately $210 million, and our full-year adjusted EBITDA guidance to $44 million to $46 million. Just to be clear, these numbers do include the impact of both the ePatch and VirtualScopics acquisitions.

Our strategy delivered strong results in our first two quarters, and while we expect that momentum to continue into the second half of the year, the quarter is typically a slower quarter due to the summer months, particularly in the patient services segment. That being said, we are expecting revenue to be relatively flat as compared to the second quarter of 2016 as we have seen in prior years. More specifically, for the third quarter we expect to see revenue of around $53 million to $54 million, or about 23% higher over the prior year quarter, and adjusted EBITDA return of approximately 22% to 23%, or about 38% over the prior year quarter. Given our year to date momentum, we are confident about the Company's ability to achieve this guidance.

To summarize, we posted our 16th consecutive quarter of year-over-year revenue growth and ninth quarter of sequential EBITDA margin expansion, and we doubled our quarterly GAAP net income. We have a strong balance sheet with more than $25 million of cash, low leverage, and additional debt capacity if needed. The Company has never been in a stronger financial position. And with that, I will now turn the call back over to Joe.

Thanks, Heather. As you have just heard, we had a highly successful second quarter, continuing to track ahead of 2016 expectations. In addition to achieving excellent results, we received FDA approval to market our next generation MCOT device in a patch form factor. We completed over 8,000 CardioKey services, integrated the ePatch business, and acquired VirtualScopics, dramatically improving the competitive strength of our research business. Our strategy is clearly working as designed.

To ensure continued success in 2016, we will stay focused on the following items as we move into the back half of the year. We will build on our comprehensive approach with the further market penetration of CardioKey, followed by the launch of our next generation telemetry system. We will continue to capitalize on the increased A Fib awareness and education in the marketplace by showcasing the best-in-class attributes of our technology. We will work to expand payer coverage for all services, integrate VirtualScopics, grow our research backlog, at least double the size of our INR services business, drive further efficiencies throughout the organization to maximize margin opportunity, and evaluate additional acquisition targets that will accelerate our strategic plan.

By continuing to execute our plan, we expect to be in a strong position to deliver more record-setting results. Our guidance of 35% plus year-over-year EBITDA growth demonstrates the confidence we have in our business. Additionally, we are increasingly encouraged by the macro trends towards expanded applications for telehealth and remote monitoring solutions. BioTelemetry is uniquely positioned to benefit from these market dynamics.

In closing, I would again like to thank those at the Company who helped deliver our 16th consecutive growth quarter. Without your sustained efforts, many people may have gone without the benefit of our life-saving services. You should be proud that your hard work is positively affecting the lives of hundreds of thousands of people. With that, we'll now pause and open the call to questions. Operator, we are ready for our first question.

(Operator Instructions). Bruce Jackson, Lake Street Capital.

With the gross margins, I was prepared for a lower gross margin rate because of the acquisitions in the research group. Is this level of gross margin sustainable going forward in 2016?

Yes. You'll see a little bit more of an impact. And this quarter it had about a 50 basis point impact on the business. That will increase a little bit when we have a full quarter of VirtualScopics in Q3. But with the continued growth of the patient services business at the higher margins, you are seeing some offset there as I mentioned earlier. So I think that at about this level is reasonable to close out the year.

Okay. And then looking forward to 2017 just directionally, we had a nice tailwind this year with the CMS reimbursement for MCOT. Next year that's going to tail off a little bit. Does that have any impact on the gross margin picture for 2017?

Not a significant one. As Joe mentioned, based on our current year volume, we expect about a $2 million negative impact due to the geographic price index. But looking into next year, we also have some additional efficiencies with the launch of the ePatch and also just volume growth leverage that shouldn't impact the gross margin in 2017 significantly.

Yes, and also in 2017 we'll be starting to cut in the new MCOT device. That comes with a lower cost of goods sold. Now, you won't feel the impact of that in the early days. It will take a while to see impact of that, but we think that we have enough puts and takes to offset it pretty comfortably.

Okay, great. Then last question and I'll hop back in queue, what's your target for the adjustments to get to the adjusted EBITDA number for 2016 for the total year?

So, are you asking what our forecast is for addition -- basically its patent litigation expense and some integration expense. (multiple speakers) Yes, it's going to tail off into the second half of the year, so maybe an additional $1.5-ish million between Q3 and Q4. It may be a little higher, depending on when we execute some of the integration related items.

Okay, great.

At the most, maybe about $2 million.

Okay, great. Thank you very much.

Marco Rodriguez, Stonegate Capital.

I wanted to get a little bit of a better handle on VirtualScopics and its impact on the quarter and then on your guidance. Can you walk me through what revenue contribution you saw from them and then EBITDA contribution?

Yes, so on the top line, when -- it was about a $2.5 million impact on the top line, but that also included some revenue that we were able to pull in that they would not have had they not been acquired. So while the imaging contributed that additional $2.5 million, I wouldn't attribute 100% of that to VirtualScopics, but it's kind of difficult to split out. And then same thing on the bottom line. We actually picked up a couple hundred thousand dollars of EBITDA, but that was offset by some of the expenses related to the Delta acquisition in the quarter. So that was about a net neutral.

And if it didn't come across clearly in our comments, I think one thing that's important to note is that our revenue forecast for the quarter did not include revenue from any acquisitions. And had we not done the acquisitions, we still would have beat that a decent amount. We would have been over $50 million without the acquisitions. (multiple speakers) As Heather indicated, that we picked up another $2 million plus from the acquisitions. So, the business had outperformed in the quarter even before the acquisitions.

Right. (multiple speakers) Go ahead, I'm sorry.

So 13% year-over-year organic growth on the top line.

Right, right, right, yes. I just wanted to quantify the impacts there. So that's great. And then how should I be thinking or how should we be thinking about VirtualScopics' impact for fiscal 2016? You have the increase in guidance, obviously. You've done well first half on an organic bases. Just trying to get an idea as far as how VirtualScopics works into that guidance. And then how we should maybe be thinking about go forward growth rates for the research services now that you've got VirtualScopics in there.

So, our original guidance coming into the year was about $195 million to $200 million. In our last call we had indicated that, excluding VirtualScopics, we expected to hit the upper end of that range. So basically the difference between the $210 million and that higher end of the range is essentially what we believe the impact of VirtualScopics will be.

Got you. And the same goes for the EBITDA guidance, the increase there?

That's correct. It's a combination of that and our performance to date versus what we had guided to.

Yes, EBITDA is probably half and (multiple speakers). Because we were outperforming to date. The only reason we're hedging a little bit, Marco, is because we are rolling into the toughest quarter of the year and we tend to be a little bit conservative when we forecast, anyhow. But the business is really -- got some nice momentum to it.

That's right.

Got you. No, that's very helpful. And last quick question, when we are thinking about the -- or if you could maybe share any sort of trends you are seeing on the healthcare services side that might be beneficial to the launch of your new MCOT patch. And if you can provide any details or any kind of color as far as timing on that launch and what sort of expenses, if any, might be incurred to get that going.

So the first one, trends in the market, there is a trend just in general towards the introduction of systems that are more patient friendly, which theoretically should drive higher patient compliance. You'll have less breaks in service if the device is less invasive and could potentially lead to some expanded utilization. So, we've seen that in the marketplace. I can't quantify that for you other than provide commentary around the fact that we're seeing more demand for it. Smaller, more comfortable devices makes sense, because these are consumer-esque devices, if you will. So we think it will be well received in the marketplace. We're not the first company to introduce patch products, so we have some indication that they are fairly well received. Now, that being said, form factor is really only one part of the overall solution.

If you have a really slick form factor but your device is terrible at picking up arrhythmias and diagnosing these life-threatening issues, then the product is no good. So you can't have one without the other, and we have seen the market reject some of the quote-unquote more convenient products that don't work that well. As far as when we plan to introduce it, right now we're just saying later in the year. We still have some more production work to do. We've ordered parts, scheduling manufacturing; all that takes time, so you'll probably see a beta release or limited release in the second part of this year, later in the year. And then we'll move into a more expanded rollout into early 2017. Expenses are already built into our budget. I wouldn't (multiple speakers) yes, I wouldn't get hung up on that.

Got you. Great. I appreciate your time, guys.

Jan Wald, Benchmark Company.

Congratulations on the quarter. Best one to date. (multiple speakers) Maybe taking a step back a little bit from details, one of the things I'm interested in is what -- because you keep taking competitors or potential competitors out. How do you view the competitive landscape right now? Who is your primary competitor? Who out there is coming with something that would concern you? What does the environment look like?

Yes, it has not changed much, Jan. It's the same folks. There has been some acquisitions or consolidation, but really it's -- LifeWatch is our number one. You have eCardio. And then it falls off after that. Not everybody has the coverage that we have from a payer standpoint, and none of them have the product portfolio we have. So we think that we're taking share. We think that the market has grown a little bit and we have taken our unfair share of that. And we have certainly been disruptive to some of our competitors.

Okay. And in terms of reimbursement going forward, you get reimbursed now on -- almost on, like, physician-patient contact, but there's a whole lot of other services that you provide that aren't reimbursed for now, like the data center and things like that. Do you see that changing? And how much -- if that were to change, what do you think the new reimbursement level would be, just maybe in terms of a change in percentage or something like that?

I don't think you'll see additional services become reimbursed separately; unbundling of services, if you will. Today our reimbursement is set for a service, and that includes monitoring, that includes the device, that includes training, that includes retrieval; it includes all the facets that deliver the service. And that, when the reimbursements were set for these services, all of that cost was taken into account.

What you may see, though, Jan, is movement towards value-based pricing or value-based reimbursement. And there's been some work from CMS that they are attempting to come up with the models for value-based pricing. We invite that, frankly, because we know that we save money. We've done studies in the past, as you are aware of, where we've shown a pretty dramatic reduction in inpatient labor related costs when you use an outpatient service like MCOT. And we think that if CMS ever does move to more of these value-based pricing models, we'd be in great -- we'd be well-positioned for that.

Okay. Thank you. And going back to the research services just one more time, it seems like the growth is pretty stable, if you will, but not accelerating. At least not accelerating as much as I had -- or we had thought it might. Is there a reason for that? Or am I thinking about research services incorrectly, wrongly?

No. I think -- we came into the year, we had a feeling that the business was going to grow at a certain rate. And I think it has grown pretty much at that rate. You got to remember -- first of all, one of the things that's happened, clearly, was there was some price reductions for some of the services being provided in the industry. So, while our volume is up, our ASPs if you will in that space are not tracking at the same rate.

So you have volume growth with flattish revenue for some of the services we provide. Plus it's a choppy business. You have some of the seasons where you get a lot of studies, or some quarters where you have a lot of studies and some where you don't. We clearly felt the impact of being a one-trick pony. We only offered cardiac services, and the CRO business or the clinical research services industry is consolidated quite a bit -- or has consolidated quite a bit.

And we were tracking a little bit behind that strategically. Often we were being asked to bid on multiple service lines, and we were only bidding on one, which put us at a competitive disadvantage. Hence the reason why we were so focused on adding other service lines. And more often than not we were seeing opportunities to bid both imaging services and cardiac services, which is the reason why we prioritized clinical services over any of the other options out there.

So, Jan, I'll tell you, immediately after the acquisition, the response from the customer base was unbelievable. And although we don't make it public, I can tell you that our backlog grew as a result dramatically in the first couple months of the acquisition. So, the answer back from the marketplace was your strategy made sense and we're happy with you as a company, so we're giving you more business.

Okay. Okay. That's it for me. Thanks and again, congratulations on the quarter.

Chip Saye, AWH Capital.

The first question is you mentioned the market growth -- you said the market is growing a little bit and you guys are growing a little faster. Number one, can you talk about at what rate is the market growing? And number two, repeat again why you guys are growing faster than the market.

So, tough to give you an exact answer on market growth rate. We think it's probably in that low to mid-single-digit range. And we talked last quarter -- we explained -- outlined several areas why we think we're doing so much better. I think a lot of it comes back to execution, the sales and marketing team, and the messaging is -- the sales and marketing team is doing a lot better delivering the message. The message is a lot clearer than it used to be, and it's consistent with market demand.

The market is shifting more towards, hey, we want devices and we want systems that are really accurate, because we're trying to diagnose some of these arrhythmias at a very low level. Meaning that -- let's say you are looking for A Fib in a cryptogenic stroke patient. You don't know what caused the stroke; it possibly could have been A Fib. If you have a device that needs five minutes of A Fib to trigger, it's not a very effective device. A neurologist wants to treat that patient with an anticoagulation med as soon as they know that there's some presence of A Fib.

And they can debate in the medical community how much A Fib is needed, but man oh man, you sure want a device they can get it at a low level and get it super accurate. There is nobody in the marketplace that can come close to us in terms of sensitivity and specificity, a.k.a. accuracy, of picking up these various arrhythmias. And A Fib obviously is the big one that everyone is talking about right now.

So I think it's execution, I think it's the clearer message, I think it's market demand for what we're delivering, so timing is right. I think part of it is we have a portfolio of products and we have more options than anybody else. We're better resourced than most of our competitors. Some of them have other issues that they had to deal with that we have not had to deal with. So I think it's a combination of things. I can't just point to one thing.

Okay. And I think a previous caller asked about competitors. Are there any other opportunities to roll up smaller competitors like you've done in the past?

Yes, I think so. I think there's an opportunity to do some more M&A or strategic work in that area.

If you don't mind, what multiples were we looking at in M&A in those cardiac services business?

I can't get into that with you now. I think it's going to be opportunistic. It depends on what the target looks like, it depends on what it means to us strategic, what it means to us post-synergy, all that kind of stuff. And obviously multiples are high right now, so it makes things tough.

That's what I was wondering. I had heard in the market that their multiples were going on, so that's why I was hoping you could maybe just give me a range.

Yes, I can tell you that we've been pretty successful at getting them in the mid-single digits, and then accreting decent value. Mid-single digits in terms of multiples of EBITDA and then accreting some pretty decent value post the acquisition and integration. If you look at it in multiples of revenue, if you just take the last couple we did; the last example was VirtualScopics. We got it at somewhere in the neighborhood of 1 or a little bit more than 1 times trailing 12 month revenue. And obviously we're trading at a much better multiple of that, so we can arbitrage some value there. And look, again, won't do them just for that, though. It's got to be strategic. It really has to accelerate our plan, otherwise we're not doing them.

Okay. And just a couple more, if you don't mind. This is for Heather. Heather, the CapEx for the year, I may have missed it, but what is the estimate for the year?

We're looking at -- depending on how quickly we launch the patch, anywhere from about $12 million to $13 million of total capital, with the majority of that coming from the device acquisitions, purchases.

Okay. And lastly, the INR revenues for 2016, what revenue level will that be?

Do we break that out?

We don't -- we haven't (multiple speakers).

At this point we're going to have about three to -- I'd say probably 4,000 to 5,000 patients on service by the end of the year. And annualized revenue, rule of thumb, you can figure about $1 million of annualized revenue for every 1,000 patients you have. (multiple speakers) throughout the course of the year, short of any acquisitions.

Okay. So, $1 million of revenue for every 1,000 patients?

Roughly.

And you should end the year with 3,000 to 5,000 patients?

At least.

Okay. I appreciate it.

Thank you. And I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Joseph Capper for any closing remarks.

Thanks, operator. Thanks again for your continued support, everyone, and interest in the Company. We're going to conclude the call, and we will speak to you at the end of next quarter. Have a great evening.

If you joined the conference late today you may listen to the conference call via digital replay, which will be available through the investor information of the BioTelemetry website at gobio.com until Wednesday, August 17. Thank you for participating in today's conference. You may all disconnect. Everyone, have a great day.