Encompass Health Corp (EHC) 2002 Q2 法說會逐字稿

Ladies and gentlemen thank you for standing by. Welcome to the HealthSouth Corporation's second quarter earnings teleconference. At this time all participants are in a listen-only mode. Later we will conduct a question and answer session with instructions given at that time. If you should require assistance during the call, please press zero then star and an operator will assist you. As a reminder, this teleconference is being recorded. I would now like to turn the conference over to the Chairman and Chief Executive Officer, Mr. Richard Scrushy. Please go ahead, sir.

Thank you very much. I would like to welcome everyone to this second quarter conference call. We're going to jump by the press release for sake of time. We've got other meetings, and this press release is the longest, most comprehensive that we have ever put out, including balance sheet information, as well as cash flow. But we'll go ahead and begin with just the meat of the presentation today.

Very strong second quarter results. 20 cents EPS met consensus estimate up 33% over second quarter of last year. We had record quarter revenues of 1 billion 163 million up 9% excluding divestitures over the second quarter of last year. We continued our EBITDA margin improvement with 29.8% versus 28.1 same quarter last year. Strong same store volume growth across all lines. Pricing was higher across all lines. And inpatient revenue was up 11% from second quarter of '01. And we completed our 2003 refinance plan. And we'll talk about that in just a moment.

Let me give you some highlights on the divisions. So first of all, second quarter net revenues, again, up 6% over second quarter of last year. Up 9% excluding divestures. So that took us from the 1 billion and 999 million to the 1 billion 164 million. Second quarter EBITDA 12% increase. We went from 309 million last year to 347 million this year same quarter. Again going from a 28.1% margin to a 29.8%, very nice margin increase.

Second quarter net income up 37%. Went from 83 million to 114 million this most recent quarter. The second quarter EPS 21 cents. Last year 28 cents. This most recent quarter. 33% increase over last year. And again, met the consensus estimate of 20 cents.

Now let's take a look at some statistical highlights. Second quarter outpatient visits. We had 2,400,046. Now that compares to 2,249,908, so that's an increase of 7%, and that's a 7% same store increase. As far as revenues in that area. Outpatient rehabilitation 239 million compared to 213 last year. That's a 12% increase. And I think another very important point here is that our pricing increased by $5 from $95 last year to $100 per visit this year. So we had some nice price increases and they're there and we're pleased with that.

Second quarter surgery cases 230,746. Last year we had 225,512. So that was a nice increase. On a same store basis that's up 5%. We did have some divestitures in that area. As you recall I talked about that last conference call, that we've divested ourselves of some of our marginal facilities that we didn't see any promise in. So on a direct comparison that would be a 2% increase. But same store was 5%.

Now, as far as surgery revenues, 264 million compared to 247 same quarter last year. That's a 7% increase. Now, another very important point, we have been trying for the last year or two to move our pricing up to a $1200 per case. And we were down in the -- around 1,000 a couple years ago. We moved it up to $1,146. Now that's a nice increase from same period last year of $1,097. So we are continuing to move that upward. Some good price increases. We do expect to be able to move that up to 1200 range over time, and that's our goal.

Diagnostic procedures, second quarter results 278,262 compared to 274,623. That's a 6% same store increase. And a 1% increase over just looking at the raw numbers. But again, 6% same store because we did have some closures and some divestitures, again of those that were marginal. Many of those that we got in some of the acquisitions over the last few years.

Now year-over-year quarterly diagnostic revenues were 89 million, compared to 87 million, again about up one percent. And that pricing is flat at about 318 in the diagnostic area.

The second quarter inpatient discharges, 29,873 compared to 28,307. That's a 5% same store increase and that's an actual 6% increase in total. The quarterly inpatient revenues, 486 million compared to 437 million last year. That's 11% increase. And our pricing has increased from 15,425 last year to 16,257. And of course in that number, we do include our outpatient revenue in the inpatient facilities. I think that's important to note there. You have to consider that all combined.

On a divisional revenue, it breaks out like this. Inpatient was 42%, outpatient rehab 20%, surgery 23%, diagnostic 8%, our medical center operation 6% and then, of course we had some other revenues which include our leases and whatnot too and our professional office buildings and others which represent about 1% of revenue.

Internal development. We added 12 sites in the second quarter, 11 de novo, and one was acquired. That's one rehab hospital, three diagnostic centers and 8 outpatient rehabilitation centers. So the total facility count now comes to 1894, and that breaks out as follows. 1,427 outpatient rehabilitation locations, 118 inpatient rehabilitation locations, 7,643 beds, 209 outpatient surgery locations, 4 medical centers which represent 425 beds and 136 diagnostic centers, and that's 1,894 facilities.

Surgery center growth initiatives continue. We had 60 new physicians in the second quarter of this year. That brings us to a total of 721 new partners under this initiative which was to bring 1,000 new doctors in. The result has been eight consecutive quarters of same store growth in that division. It's working and we will continue along the track to add those physicians and grow that to 1,000 new doctors.

As far as our recent financing activities we did complete a billion dollar public note offering and refinanced our bank credit facility. We eliminated any refinance risk that we had on the 2003 maturities. No significant maturities until 2007 now. Subsequent to quarter end we repurchased in excess of 220 million in public debt at attractive prices. We reactivated our stock purchase plan and we were actively purchasing the stock when it had its dip over the last quarter.

As far as corporate governance, the Company will comply with all congressional, SEC and New York Stock Exchange corporate accountability and listing standards. The company will sign SEC statements that certify the accuracy of our financial statements. And all of our executive loans have been paid now in full and settled with the Company.

Summary of our second quarter results. Again 28 cents EPS met consensus estimates, that's up 33% over second quarter of last year. We had record quarterly revenues, again of the 1,164,000,000, up 9% excluding divestitures. Very strong volume and pricing trends. Strong consecutive quarter of positive impact from PPS, inpatient revenue increased to 11%. And we completed our refinancing plan. Our 2003 refinancing plan. So again, we are very pleased with these results.

And we'll be glad to answer any questions that you might have. In the room we do have with us Bill Owens, who is our President and Chief Operating Officer, Tadd McVay, who is our Treasurer, Executive Vice President in Finance, Weston Smith, who is our Chief Financial Officer. We have the Presidents of our two divisions, Pat Foster and Larry Taylor. We have our assistant and associate general council, Nat Gary and of course our Chief Marketing and Communication Officer, Jason Hervy. So we'd be glad to open it to questions.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press the one on your touch tone phone. You will hear a tone indicating you have been placed in queue. And you may remove yourself from queue at any time by pressing the pound key. If you are using a speaker phone, please pick up your hand set before pressing the number. Once again if you do have a question or a comment, press the one on your touch tone phone at this time. The first line we'll open is the line of Frank Morgan at Jefferies. Please go ahead.

Good morning.

Good morning.

Great quarter there. Hey, I was hoping you could give us an update on how the implementation of PPS for the inpatient side of the business is rolling on out? I know you added more hospitals in the second quarter and you have another heavy slate of assets that will roll over in the current quarter. Could you just give us an update on what you are seeing in terms of length of stay trends, in terms of acuity, and have you learned anything from the early implementation that you may be rolling into the training as these last group of hospitals undergo PPS?

Okay, yeah and I will go ahead and start that and I'll let Pat Foster and Bill jump in if they have things they want to ask. But basically, the overall revenue growth, again 11% and same store revenue growth 14%. Of course that excludes the Meadowbrook divestiture of those four hospitals that we had previously announced. 5.5% volume growth overall. Medicare discharges are up 8.4% year-over-year. Again that's evidence that we have -- you know we've actually sought out some of those Medicare patients, and that the Medicare patients have been referred to us from inpatient rehab units that are closing down. And we have about a 5.2% increase in pricing per discharge. Our payment rates have been right on from what we had expected as we have continued to report that. Our length of stays are down. Acuity has been up. Stroke initiatives are paying off. As you know, we ran a stroke campaign that was very -- worked very well for us and did bring in a lot of stroke patients, and of course many of those are on Medicare so we see some growth in the Medicare from that as well. But our cost controls are solid and things are all moving in the right direction. Pat, did you or Bill want to add anything?

I would just like to add, yes we've learned a lot since the beginning of the year. We continue our emphasis on increasing the case mix index and Richard mentioned that we've done that by initiating a stroke campaign. And we've had ongoing training -- neurological training with our clinical staff, ourselves and marketing staff. We have really focused on the data advantage information which we refer to internally, which gives us all the stroke discharges, the average length of stay of the stroke patients in the medsearch hospitals in each individual market. Our case mix index has trended upward every month since the beginning of the year. We continue to change the clinical mix and focus on the neurological patients. Length of stay, like Richard said, has ticked down a little. But we learn something new every day. But, I'll tell you, we are just knocking it out of the park, pleased with where we are.

Okay and Bill, I don't think you have anything to add to that. Very good. Okay. Thank you, Frank and we'll move on.

Thank you. Our next question will come from the line of Howard Capek at UBS Warburg. Please go ahead.

Hi, Howard Capek. Thank you. If I could, could we focus on cash flow and really going into the second half of the year, if you can hit on high points in terms of DSOs, how well can they improve from here going into, you know, the bulk of inpatient PPS? Is there any changes to working capital that we need to be aware of? And then, second, if you could, again on the cash flow, in terms of Cap-X for the year, could you maybe break it down by business line, roughly? You know what percentage of Cap-X is being spent on inpatient versus diagnostic, versus surgery, versus outpatient rehab?

Alright, let me start with the first question. I'm going to -- Weston, I'll ask our Chief Financial Officer to make some comments on the DSOs. Do you want to do that Weston?

Yeah, we did enjoy some decrease in day sales outstanding in the quarter. As you remember from last quarter we had two intermediaries who weren't prepared for PPS, didn't have their systems in place. They did complete their systems setup during this quarter. We had to go back and resubmit claims to those intermediaries. And we are seeing a number of those claims processed, in addition to the current second quarter claims. So, you know, in terms of the backlog that we had, we will continue to see a decrease in that area as a result of all the intermediaries now being up to speed in PPS processing.

And Howard, in terms of the Cap-X, you know, our guidance that we have recently updated has been for this year and next, we expect Cap-X to be in the 450 to 550 range. We are still good with that guidance. As you know in the first quarter our PP&E spend was $184 million. This most recent quarter as indicated in the press release, that number was down to $137 million which puts us halfway through the year with a spend of 321. You know, we do believe we can stay within the 450 to 550 range for the year. The way that Cap Ex is split, in the most recent quarter, which I think is indicative of the way we are prioritizing dollars, inpatient rehab received $34 million of that spend, surgery 22 million, diagnostics 16 million, outpatient 4 million, then our digital hospital, as you know that was one of the synthetic leases that we paid off after we paid that off -- or when we paid it off, it had a balance of $19 million. Since that time, when we paid it off, included in Cap Ex is an additional $11 million. Equipment spend was 9 million. I.T. spend was minimal at 1 million, and then our maintenance efforts required 40 million. And that totals to your 137.

And that should be indicative going forward of the similar mix?

That is correct.

Just one last, again on the cash. I know period end June 30 through today, can you discuss sort of uses of cash? Share buyback versus debt buyback and things like that?

As Richard said, you know, we did -- we have been repurchasing debt in the open market, public debt. We've spent -- since July 1 we've spent $220 million doing that. You know, I don't want to talk about which issues we are going after for obvious reasons, but it probably doesn't take a rocket scientist to figure that out. Equity repurchases, just since the end of the second quarter, we have spent about $26 million buying back shares.

Thanks very much.

Thank you Howard. Next question.

Thank you. Our next question will come from the line of Adam Feinstein of Lehman Brothers. Please go ahead.

Great. Thank you. Good morning, everyone. Just -- question that I have is just with what's clearly been a crisis of confidence in the general market, but clearly in the shares of HealthSouth in recent months. I'm just curious to hear, maybe what the Company is doing to address that? Clearly there were some signs of that with some of the things you were just talking about. But could you go into a more detail there, and then just give us some thoughts on how active the board is in terms of driving that as well? Thank you.

Okay. We will be glad to do that, Adam. I think we've been - we were way out in front of the curve here. The -- you know, we have an audit committee chair in George Strong, who has been on our board for several years. George comes with an excellent financial background, had been CFO of companies, spent 20 years working for a financial institution and he's our Chairman of our audit committee. And so we have a very strong audit committee with good leadership. Our audit and compensation committee is made up solely of independent directors. Se we're already there with that. That was in place -- we already have established a business code of conduct and ethics. Brad Hill, who is our Chief Compliance Officer, and he reports directly to the board on all of those issues, and to a compensation committee which is led -- I mean a compliance committee which is lead by Joel Gordon, who also had been a CEO of another company and has extensive experience in healthcare and understands it. And again, an independent situation.

So, also I think it's important that Bill Owens and I, the President and Chief Operating Officer of our company and I, are the only two members of the management team to serve on our board. All the order board members are independent. And I mentioned earlier that we had -- have aggressively went back and made sure that all of our executive loans were repaid. That's been taken care of. It was a great idea at time. And I still think it was a good idea. We obviously were able to create a lot of incentive for all of our folks to work very hard, that were able to get shares through that program. But that's been taken care of. And we are prepared to sign off on all the financial statements on August 14th. So, I think everything is in place, Adam, and we are where we need to be and I appreciate you asking the question.

Great. And just maybe one quick follow-up. Just -- you know, in the past, there's been some drag from some of the investments in source medical, in Med Center direct. Can you just talk about that? And, you know, in terms of your thoughts going forward in terms of how committed HealthSouth is to funding those? And whether you would pull back to the extent those businesses don't work out?

I think that, you know, they are two different businesses. And they're both very important to us in our day-to-day operations. First of all, Source Medical does handle all of our wireless technology for charting charts capture in both our surgery centers, they handle the SIS system which handles all of our processing of charting and billing, and whatnot. But also in the outpatient rehab area, they are extremely important to us. And we just literally couldn't operate without them. And Bill, you may want to comment on that more. But we believe that Source Medical is going to be a very successful company over time. I don't want to tout them too much. But they have good management, strong management, good systems in place. It's a good company. And we will continue to invest in that company. And we believe it makes sense for us to do that because of the importance they are to us in just running our day-to-day business. As far as the MCD, Med Center Direct, we believing that Med Center Direct also has outstanding systems and we believe there's a lot of promise in that company. Unfortunately, we're concerned -- we all have some concerns about whether or not, you know, they will be able to finance their selves going forward with the market situation the way it is. And of course, they had hoped, also to potentially have a public offering at some point. So, you know, we have an investment in that company. They are very important to us. We will evaluate our position with them in terms of investments. We do like the technology and we intend to keep using it. So, you know, that's sort of where we are on that company. Bill, do you want to make any comments?

Absolutely. On Source Medical, I think you need to understand, Adam, that we are not -- we are by far Source Medical's largest customer, but we are by no means their only customer. They have over 800 surgery centers that they provide the billing and financial systems for. We only represent 209 of those over 800 customers. They have over 1,000 physician office clients which we are not involved in that system at all. They have recently signed several other large healthcare companies across all their product lines including physical therapy, their new radiology product. So they are a very, very strong and viable company. Of course, as a new technology company, they have had to invest in R&D and we have been -- we have helped to back that up. But Source Medical is positioned very well with a tremendous customer base and will do well. And as Richard said, you know, we are working through MCD issues currently, and we will do the right thing for our business, as well as our shareholders as it relates to both of those businesses. But I believe that, without a doubt, Source Medical has a bright future and that our shareholders will reap the benefits of the close to 40% ownership that HealthSouth has in that business.

And I think that's important. The -- as that company capitalizes itself going forward. We wanted to make sure that we don't take any major delusion. As you know, the market has been weak for raising venture capital for technology companies. So, we've been careful to protect our investment there. Make sure that we didn't have someone come in and take half of our ownership with -- and dilute, you know, all the -- all of our investment down. We feel good about it. We feel very strong about the management team and where they are going. They have an outstanding product. We think they have a leadership position in the product they offer. And we also believe in the MCD product. We think it's very strong. And I think there's lots of potential there. We will be evaluating that going forward. We believe that there's a lot of strong leader SLP in that company in Med Center direct and we would like to see them be just as successful and we think that they may have that opportunity. So we'll evaluate that going forward. But, thanks for the question.

Great. Thanks.

Thank you. The next line we'll open is the line of Scott Estes at Deutsche Banc. Please go ahead.

Thanks. Good morning guys, how are you doing?

Good.

I had a couple questions related to inpatient rehab. First, I wondered if you guys had done any work analyzing the impact of the recently announced 3% payment update slated for next year, whether that's in the numbers or not and how you are thinking about that at this point? And then secondly, on the cash collections front, do you foresee any DSO impact of the 41% or so of the new hospitals that went on the new system on July 1st? And maybe if you could again reiterate your DSO guidance for the year, that would be great.

On inpatient rehab, the 3% increase for next year, we are still in the process of evaluating that. It will obviously be positive as we look at 41% of our revenue that comes from inpatient, 70% of that being Medicare. If you just go through those calculations, you're going to come to a number that comes somewhere between 25 and $30 million, that we should get in increased revenue off of the market [inaudible] increase next year. Now, we are analyzing it further down into individual facilities and making sure that that back of the envelope calculation truly rolls up to that number. But, you know, it's easy to do the math, and I just walked you through that calculation. Your second question as it relates to new facilities rolling on, PPS in this quarter, this is our largest number of facilities at about 41% rolling into PPS at the beginning of the third quarter. For us to be able to predict how our intermediaries will handle that, is going to be very difficult. Those, fortunately for us, most of our hospitals, the vast majority of our hospitals, are only single intermediary which is Blue Cross Blue Shield of Alabama, which has always been geared up because they support us, and the vast majority of these hospitals are on that intermediary as well. We do have isolated intermediaries for various reasons out there who don't have large rehab presence and that's where we have seen the intermediaries not be able to respond quickly. So, and could there be an issue in the third quarter related to the fact that it's our biggest chunk of facilities? If it is, it will be minor. But we can't predict that. And Weston, if you want to talk further about our DSO targets for the year.

Well, again, I mean, we feel confident that the intermediaries are now in place to support the process on PPS. You know, with the new facilities -- with the additional facilities rolling in this quarter, the intermediaries had already been processing other PPS claims for other hospitals on the system. So, you know, any growing pains with that, I would think would be nominal.

Okay, great. Thanks. Nice quarter.

Thank you.

Thank you. The next line I'll open is the line of Bill Binello at Wachovia. Please go ahead.

Bill, are you there?

Can you hear me?

Yes.

Great. Had a couple of different follow-up questions. First of all, in the surgery center business the pricing increases, can you give us a sense of how that breaks out between mix and actual rate increases?

Yes. Bill, why don't you go ahead, you've got that.

Yes. In surgery we went from 1,097 to 1146 which is a 4% variance over the prior year. And a 3% sequential quarter increase. And substantially all of that is driven off price increases versus mix increases. We do, you know, we obviously are still recruiting physicians such as plastic surgeons and orthopedic surgeons and podiatrists, who produce those higher per case revenues. But the mix change right now, the price increases you are seeing are predominantly pricing. And I'm very comfortable saying that virtually all pricing and very little mix at this point.

And can you give us some sense of those pricing increases, you know when they actually -- did something significant happen over the course of the quarter in terms of pricing increases, and what the outlook for pricing might be going forward?

We still believe that we have the opportunity to move our pricing up. We have said all along that our competitor, and across all of our product lines is the acute care hospital. And that the strength and the value that HealthSouth brings is the fact that our prices are significantly less than the traditional acute care model. And that our quality is at or above that model. So we still continue to sell that story to managed care and the payer community on a daily basis.

As you can see from the results, we are having success in that. During this quarter, we did have very isolated incidents, renegotiated several national contracts at an average increase of about 10% which you can see reflected in those numbers. We renegotiated contracts in Illinois and Missouri for outpatient, at an increase of 27% over previous rates. And we had 12% higher surgery rates for centers in Colorado. So you can see that we are making significant impact across the board, across all of our product lines. And we believe that we still have the opportunity in the future to continue to drive the price.

And as we negotiate, you know, a thousand plus contracts a quarter, all of our people are very keen on making sure that we don't slip backwards, that we are moving forward on those rates. And hospitals have gotten rate increases and it's only fair that we get rate increases. And we are beginning to see that. That's moving forward. So we appreciate your call, Bill, your question. And we can take -- did you have a follow-up, Bill, because we're going to move on?

Yeah, I actually did have a follow-up.

Go ahead, I'm sorry.

That's all right. Just switching gears. On the inpatient rehab, can you give us some sense of what's happened? You talked generally. But could you be be a little more specific about what's happened on the cost side? Have you seen cost inflation as well? And specifically, are you getting higher cost cases dumped on you by hospitals now that they are under PPS?

Good question. And I'm going to let Pat Foster, President of that division answer that question.

Actually our cost for discharge on Medicare side continues to go down. And the biggest factor related to that is the increase in the number of discharges. We have held our other variable expenses very steady. Salaries and wages have creeped up a little because of the nursing shortage and the demand that we are seeing for nurses. But our actual cost per discharge has ticked down a little because of the increase in the volume and the number of discharges. And we anticipate that with the increased discharges and volumes, we anticipate for that cost per discharge to remain pretty steady through the end of the year.

Thanks a lot.

Thank you. We've got time, operator, for one more question.

Alright thank you. Then our last question will come from the line of Matt Ripiger at JP Morgan. Please go ahead.

Yes. Thanks. Matt Ripiger Just two questions here. One's a follow-up. You mentioned earlier the repurchase program and the progress you have made to date. I wanted to see if you could give us an update on where you stand in terms of the authorization for buying back stock. And then given your options of buying back bonds, converts or stock going forward, what is the company's strategy in terms of buying those back?

Okay. Good. Tadd?

Yeah. Matt, in terms of the stock repurchase plan, our plan allows for the repurchase of up to 70 million shares. That plan is approved and in place until February of 2004. To date, of that 70 million share limitation, we have repurchased just under 48 million shares. So, as you can see, we've got plenty of room there, 22 million cushion to continue to repurchase shares. On the debt side, our strategy is take advantage of weak market conditions that may affect the spread and our bonds, and where we can, buy those bonds back under par, and it makes sense from an accretion standpoint, and we've got ample liquidity to execute, you know, we're going do that. And we have been active in repurchasing our bonds. And I would expect we'll continue to be active.

Okay, great. And one follow-up question. You mentioned the reduction in the length of stay on the inpatient rehab business. I wanted to see if you could help quantify how much that has improved year-over-year, and what specifically do you attribute that improvement to?

It's ticked down to between about 16.5 days average length of stay for the most current month. And we attribute that to just continued focus on the in-home teaching and the discharge planning, and strengthening of our case management and discharge planning and working with the med search hospitals. And when the patient is admitted, the plan of care and working with the doctors prior to admission. I think the length of stay will stay fairly constant between 16 and 17 days average.

It's a retraining of everyone involved in the process. When you go from a cost based to a discharge based reimbursement, retraining every physiatrist, medical directors in all our hospitals, our nurses, our therapists, and everyone understanding that the priority is to get this patient well, to get them back up to a level where they can be discharged and can be independent again. So, it's truly a focus of all of our people and it takes time. You know it takes time.

Thanks very much.

The only thing I would add on that is there's several indicators that we monitor to make sure that we continue the superior clinical outcomes that we have. And that's discharge to home, and the clinical gains that patients make and those have continued to improve. So with that downtick, we still see the great clinical, superior outcomes that we have.

Thank you for the question, Matt. And we are -- we're going to have to wrap up. We've got to run to another meeting. And I have got to leave in order to make my next meeting because I have to drive across town. So I'm going to turn this over to our assistant general council and ask him to read our forward-looking statement. I want to thank everyone for dialing in today. We appreciate your continued support.

Some of the matters discussed in this conference call or in the Company press release, may constitute forward-looking statements within the meaning of section 27 A of the Securities Act of 1933. And Section 21e of the Securities Exchange act of 1934. Some of these forward-looking statements may be identified by the use of forward looking terminology such as: believes, expects, may, will, should, seeks, approximately, intends, plans, estimates or anticipates or the negative thereof, or other comparable terminology, or by discussions of strategy, plans or intentions. These forward-looking statements are necessarily estimates which we believe are reasonable based on current information and involve a number of risks and uncertainties. And there can be no assurance that other factors will not effect the accuracy of such forward-looking statements. While it is impossible to identify all such factors, factors which could cause actual results to differ materially from those currently estimated by HealthSouth include but are not limited to: competitive pressures in the health care industry and HealthSouth's response there to, changes in reimbursement policy by governmental and thirty party payers, unanticipated delays in HealthSouth's implementation of its strategic plans,general conditions in the economy and capital markets, and other factors which may be identified from time to time in HealthSouth's Securities and Exchange Commission filings, and other public announcements, to which you should refer for further information..

Thanks again for dialing in. We appreciate it. Have a nice day.

Ladies and gentlemen that does conclude your teleconference for today. Thank you for your participation and for using the AT&T Executive Teleconference service. You may now disconnect.