Ensign Group Inc (ENSG) 2015 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Ensign Group Incorporated second quarter fiscal year 2015 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions). As a reminder, this conference is being recorded.

I would like to introduce your host for today's conference, Mr. Chad Keetch, Executive Vice President. Sir, you may begin.

Thank you, Vince. Welcome, everyone, and thank you for joining us today. We filed our 10-Q and accompanying press release yesterday. All of these announcements are available on the Investor Relations section of our website at www.EnsignGroup.net. A replay of this call will also be available on our website until 5 p.m. Pacific on Friday, August 28, 2015.

Before we begin, I have a few housekeeping matters. First, any forward-looking statements made today are based on management's current expectations, assumptions, and beliefs about our business and the environment in which we operate. These statements are subject to risks and uncertainties that could cause our actual results to materially differ from those expressed or implied on today's call.

Listeners should not place undue reliance on forward-looking statements, and are encouraged to review our SEC filings for a more complete discussion of factors that could impact our results. Except as required by federal securities laws, Ensign and its affiliates do not undertake to publicly update or revise any forward-looking statements or changes arise as a result of new information, future events, changing circumstances, or for any other reason.

In addition, any operation we mentioned today is operated by a separate independent operating subsidiary that has its own management, employees, and assets. References to the consolidated Company and its assets and activities, as well as the use of terms we, us, our and similar verbiage, are not meant to imply that the Ensign Group has direct operating assets, employees or revenue, or that any of the various operations, the service center, real estate subsidiaries, or our captive insurance subsidiaries are operated by the same entity.

Also, we supplement our GAAP reporting with non-GAAP metrics. When viewed together with our GAAP results, we believe that these measures can provide a more complete understanding of our business, but they should not be relied upon to the exclusion of GAAP results. A GAAP to non-GAAP reconciliation is available on yesterday's press release and in the 10-Q.

And with that, I'll turn the call over to Christopher Christensen, our President and CEO. Christopher?

Thanks, Chad and good morning everyone. We're pleased to again report that we just finished a record quarter on almost every front. Our organization's leaders and their teams achieved new heights on both clinical and financial performance during the quarter. Each of our business segments gained strength as many of our newly acquired and transitioning operations outpaced even our fairly aggressive projections.

The success is due to the talent and hard work of our incredible local leaders and their teams. Results like these are only possible because of our disciplined focus on the fundamentals. We continue to recruit, train, and support the best local leaders in the business and we're confident that they will continue to deliver industry leading performance, both financial and clinical, for our patients, our communities, and our shareholders in all our new and existing markets.

As we stated last quarter, 2014 was the largest acquisition year in the organization's history and we've already transitioned 49 new operations so far in 2015, making this year our largest growth year ever. It's periods like this one, with all the opportunities that growth can bring where Ensign's bottom up first who then what leadership paradigm really shines. As of August 4, 2015, we have 60 operations in our recently acquired bucket, which is the highest number of operations in that bucket in our history.

In addition, we've acquired 14 home health and hospice agencies and opened a required 10 urgent care clinics since January of 2014. Now, more than ever before, our recent growth puts us in a very strong position for significant organic growth potential as our recently acquired and transitioning operations start to mature through 2015 and 2016, and beyond.

Remember, because most of the operations we acquire will take time to transition clinically and financially, it takes several quarters for those new operations to be meaningfully accretive. Although some of our recent acquisitions have included strong performers out of the gate, our recent results are mostly due to the performance in our more mature facilities, leaving us with significant organic growth opportunities across all our operational buckets.

We're pleased that our balance sheet remains strong, leaving ample liquidity to facilitate additional growth. Though we expect to take a short breather as we focus on our newest operations, our pipeline remains strong. As Chad will discuss in a minute, we continue to actively seek several transactions to acquire real estate and to lease healthcare related operations. With operating results running ahead of schedule, improving reimbursements taking effect later this year in key states, and the record number of acquisitions this quarter, we're raising our previously announced guidance. In our release yesterday, we increased 2015 annual revenue guidance to a range of $1.29 billion to $1.315 billion with net income guidance to a range of $65.8 million to $68 million.

We also increased our previous guidance on earnings per diluted share of $2.47 to $2.56 for the year, even after including the otherwise dilutive effect of the spinoff completed in June of last year and the issuance of 2.7 million of additional shares of Ensign stock we completed in the first quarter this year.

Other key quarter-over-quarter numbers include consolidated adjusted EBITDA was $50.3 million, an increase of 33.8%. Consolidated adjusted net income climbed 27.5% to $15.8 million, while adjusted earnings per share outpaced the prior year quarter at $0.60 per share.

Same-store skilled mix revenue grew by 159 basis points to 53.9% due to an increase in both Medicare and managed care days of 288 and 796 basis points respectively. Cornerstone Healthcare, Inc., our home health, and hospice subsidiary grew its revenue by 7.2 million, an increase of 57%, and adjusted EBITDA by 40.3% to $3.3 million. And consolidated revenues for the quarter were up 24.4% to $311.1 million.

While these results are impressive, they are only made possible because of the consistent and longstanding performance of our caregivers at each of our operations. The biggest factor by far in achieving these results has been and will forever be because of the transformative effect of compassionate service that occurs every day, patient by patient, resident by resident across our organization.

While there are many tangible and intangible metrics that we use to demonstrate the high quality outcomes to the healthcare communities we serve, we're also pleased to report that the number of skilled nursing operations achieving four and five-star ratings has improved again. As of the end of the quarter, 72 of these operations carry that designation. These improvements continued despite the recent changes in the CMS star rating system that made it more difficult to achieve four and five-star ratings. And remember, most of the facilities we acquire are one and two-star facilities at the time that we acquire them.

We expect to see continued improvements as our leaders and caregivers strive to be best providers of post-acute care services in all of our markets.

Before we turn the time to Suzanne to discuss more about our financial performance, I'd like to turn the time over to Chad to discuss our recent growth. Chad?

Thank you, Christopher. We have seen record growth so far this year. In the second quarter and since, we acquired 14 skilled nursing operations, 23 assisted and independent living operations, one home health business, one hospice agency, and one homecare business. Those include the following. In Saint George, Utah, Coral Desert Rehabilitation and Care, a 60-bed, all private transitional care operation. In Panorama City, California, the underlying real estate of Panorama Gardens Nursing and Rehabilitation Center, a 143-bed skilled nursing operation that had been operated by an Ensign subsidiary since September 2000 under a lease.

In Idaho, Heritage Assisted Living in Boise, a 100-unit, assisted living operation, Heritage Assisted Living of Twin Falls, a 78-unit living operation, and Woodstone Assisted Living, an 85-unit assisted living operation. In Utah, Wasatch Health Care and Rehabilitation, a 63-bed, skilled nursing operation, and Saint George Rehabilitation, a 130-bed skilled nursing operation. In Bainbridge Island, Washington, Bainbridge Island Health and Rehabilitation, a 690-bed skilled nursing operation. In St. George, Utah, Gentle Touch Home Care, a private homecare business. In San Jose, California, Managed Care at Home, a Medicare and Medi-Cal certified home health agency. In Whittier, California, the underlying ground (inaudible) for the Orchard Post-Acute Care Center, a 162-bed skilled nursing facility that had been operated by an Ensign Subsidiary since September 2006 under a lease.

In Arizona, seven skilled nursing operations with a total of 730 skilled nursing beds and three independent and assisted living operations with a total of 784 units, all under a new long-term master lease, making Ensign's Arizona based portfolio subsidiary, Bandera Healthcare, Inc, one of the largest providers of a complete continuum of post-acute healthcare services in the state of Arizona. In Olympia, Washington, Olympia Transitional Care and Rehabilitation, a 125 bed skilled nursing operation. In West Lake Village, California, Buena Vista Hospice, a Medicare and Medi-Cal certified hospice agency serving the Ventura County area. In Wisconsin, 15 assisted living operations with a total of 761 units under a long-term master lease with an option to purchase the real estate and lastly, in Orange and Whittier, California, two assisted living operations with a total of 188 units under a long-term lease.

These acquisitions bring Ensign's growing portfolio to 178 healthcare facilities, 27 of which are owned, 13 hospice agencies, 14 home health agencies, three homecare operations, and 17 urgent care clinics across 12 states for a total of 225 independent healthcare operations.

As Christopher mentioned earlier, we continue to see a very healthy pipeline for growth across all the states in which we operate. We are also considering additional opportunities in a few new markets. While we expect to take a much needed breather over the next few months, we do expect some mild growth in the third and fourth quarters. We continue to work with small owner-operators, midsized regional operators, national operators, and healthcare REITs to source additional opportunities across all our geographies, and we continue to be a buyer of choice.

As our footprint continues to expand, so does our ability to grow. We remain very excited about the many growth opportunities we see before us and believe that our unique approach to growth continues to be scalable. And because of the many transitions we've completed, we have the best and most experienced transition teams in the business. What distinguishes Ensign from so many other buyers, including real estate investors is our field driven transition strategy. This army of leaders includes our clinical and operational leaders, and professionals from information technology, human resources, benefits, compliance, construction management, accounts payable, accounts receivable, legal, and contracts.

It's because of their tireless efforts and their dedication to our mission that we are able to grow the way that we have been able to grow, while maintaining our performance. What makes this growth possible is the personal commitment of each and every one of these individuals, both in the field and in the service center. And with that, I'll hand it back to Christopher.

Thanks, Chad. It's really been a remarkable period of growth for our organization. We're excited for the new opportunities this growth provides for so many. However, I want to emphasize today that while our team of expert operators and clinicians across the organization have been successfully transitioning dozens of new operations, they've simultaneously been achieving record improvements in our same-store operations. As we discussed before, our consistent growth throughout our history has shaped our operating strategy and the day to day lives of our operators. And even though our growth might appear from the outside to be more than normal, our local leaders and clusters have become accustomed to maintaining a dual focus on transitioning our newly acquired facilities while continuing to achieve clinical and financial excellence in our transition and same-store operations.

As our leadership and our footprint expands, so does our ability to grow without overburdening any particular corner of the organization. And because our local leaders are an integral part of our decision making progress on every single acquisition, we're confident that with the careful guidance of our clusters and operators that we will successfully integrate each of these new operations into the Ensign family.

We get regular questions about what we are doing to produce results like this quarter's. While some things are universal, like growing census or increasing acuity across an operations base, how that census is grown and how that acuity is increased varies widely from market to market, operation to operation, and leader to leader. That's why Ensign's local leadership model is so critical in times like these. As always, let me share a few examples.

Whittier Hills Healthcare Center, located in Whittier, California has seen remarkable growth under the leadership of executive director, Robert Gray, and Director of Nursing Services, Ophelia Gomez. Their remarkable team, including physicians and therapists, have transformed Whittier Hills into one of the most trusted providers of post-acute services in that greater LA market. Due to their consistent outcomes through state of the art services, they have developed a tremendous reputation for short-term rehabilitation services and have become a go to partner for most of the key managed care providers in their market.

As care improves and people return home quickly, demand for their services has skyrocketed. As a result, Whittier Hills has seen a sharp spike in managed care and Medicare days, which were up 63% and 15% respectively over last year. Additionally, their skilled mix revenue percentage was up an impressive 715 basis points with total revenues increasing by 21%. This has led to an impressive 79% increase in EBITDAR quarter-over-quarter, all while improving clinical results and patient outcomes in dramatic fashion.

Similarly, we also saw some impressive performance from the team at Sunview Health and Rehab Center in Youngtown, Arizona. CEO, Sean Hill, and COO, Holly [Worrell] have partnered with the medical community to be a vital solution for subacute and post-acute services in Western Phoenix. With a focus on post-acute continuum performance, readmission processes, length of stay management, and sophisticated care pathways, the Sunview team has made a true difference in the lives of their residents.

Likewise, Sunview has continued to build up their impressive suite of subacute services, enabling them to take more critical patients, thus providing solutions for their acute partners. Accordingly, subacute days have improved for the quarter by an incredible 23% with total occupancy growing by 174 basis points. In addition, total skill mix grew by 625 basis points to 71% of total revenues and total EBITDAR grew by over 45%, all compared to the same quarter last year.

Lastly, Elite Home Health and Hospice posted outstanding growth under the leadership of executive director, Brian Wayment, and Director of Nursing, Sherry Osborne. Elite's topline revenue grew by 27% and EBITDA increased by 43% from the comparable period in 2014. This growth was driven by the expanded use of Elite's hospice services, as it became the hospice of choice for many referral sources. Elite's total census grew by 68% and its hospice revenue grew by 69% over the same period last year.

While hospice has become an increasingly important contributor to Elite's success, the agency's larger home health service line has also continued to experience strong growth and operational improvement. Average daily home health census increased 8.4% and home health revenue increased 18%. Through its strong culture and commitment to clinical excellence, Elite has become a key resource for the healthcare communities of Eastern Washington and Northern Idaho.

There really are dozens more stories like these and I can't stress enough the importance of having highly competent and empowered local leaders at the helm of every single operation. As wonderful as these examples are, In each case we would emphasize that these operations are far from mature and significant organic upside exists, not only in our recently acquired and transitioning operations, but also in our more mature operations, most of which continue to grow and perform, and outperform month after month, and year after year.

And with that, I'll turn the time over to Suzanne to provide more detail on our financial performance and then we'll open it up for questions. Suzanne?

Thank you, Christopher, and good morning, everyone. Detailed financials for the second quarter are contained in our 10-Q and press release filed yesterday. Highlights for the quarter ended June 30, 2015 as compared to the quarter ended June 30, 2014 included record quarterly revenues of $311.1 million on a GAAP basis, a 24.4% increase. Same-store revenues increased $11.5 million, or 5.4%. Same-store skilled mixed revenue increased 159 basis points to 53.9%.

Same-store Medicare days increased 288 basis points and same-store managed care days increased 796 basis points, which resulted in overall diluted adjusted earnings per share of $0.60. On other key data, cash and cash equivalents were $50.6 million at June 30 and we had $100 million of availability on our $150 million revolving line of credit as of our filing.

We are increasing our annual 2015 revenue guidance to a range of $1.29 billion to $1.315 billion, with an adjusted net income guidance to a range of $65.8 million to $68 million. We are also increasing the annual diluted earnings per share guidance of $2.47 to $2.56, which includes the issuance of 2.7 million additional shares in February of this year.

These projections are based on diluted weighted average common shares outstanding of approximately $26.6 million; the exclusion of acquisition-related costs and amortization costs related to intangible assets acquired; the exclusion of operational losses associated with developing operations, which have yet achieved stability; the exclusion of costs incurred related to a new HR and payroll system implementation; the exclusion of a breakup fee net of cost received in connection with the public auction; the inclusion of anticipated Medicare and Medicaid reimbursement rates net of provider tax; a tax rate of approximately 38.5%; the exclusion of stock-based compensation; and the inclusion of closed acquisitions.

In giving these numbers, I'd like to remind you again that our business is not symmetrical from quarter-to-quarter. This is largely attributable to variation in reimbursement systems, delays and changes in state budgets, seasonality and occupancy and skilled mix, the influence of the general economy on our census and staffing, the short-term impact of our acquisition activities, variations in insurance accruals that relate to our self-insurance program, and other factors.

We'd be happy to answer any specific questions you might have later in the call. And with that, I'll turn it back to Christopher.

Thanks, Suzanne and thanks to all of you that joined us today. We hope this discussion is helpful. As always, I want to conclude by thanking our outstanding partners in the field, at the service center, and across the entire organization for their continued efforts to make Ensign the best organization in the healthcare sector. We'd also like to thank our shareholders again for your support, trust, and confidence. Turn the time now over to Q&A portion of the call, and before we do that, I guess I'd like to introduce Barry Port, who's our Chief Operating Officer, who's also available to answer any questions.

And I guess Vince, do you want to instruct everyone on how we handle Q&A?

(Operator Instructions) Our first question comes from Ryan Halsted of Wells Fargo. Your line is open.

So certainly a very active year with acquisitions, so congratulations on that. My first question, on the more recent deals that you've announced, clearly more of a focus on assisted living and independent living communities. I was just curious if there's anything changing in the market in terms of how you're approaching acquisitions, that sort of led you to look at those deals as opposed to sort of the traditional skilled nursing facility deals.

Ryan, we're constantly looking for the right price deals in the right markets. We have sprinkled in assisted living constantly, actually, over the last decade. And it just so happened that the right price deal in the right market where we had leadership that wanted to be involved or leadership that was already involved in this acquisition just came together on a couple of different fronts.

You'll notice we had not only the acquisition in Wisconsin, but almost as many units in Arizona, even though fewer facilities. But they come when they come and when they're the right price and we have the right talent, and it makes sense that we grow, we do it. It's not the other way around. We didn't get together and say, hey, let's just go get some assisted living operations even though it may look that way.

Okay, but I guess sticking with this line of questioning, as far as the opportunity in those markets, do you see this as a way, as a platform for expanding within that market? I guess I'm specifically referring to Wisconsin, which I realize you had some presence there, but certainly a much greater presence there. What's the market opportunity there across the entire spectrum of services you offer?

It's a good point. You're making the point better than I am. It is a great platform and it will give us much more -- much better vision into these markets from an assisted living standpoint. It's not the only reason. We're excited about these assisted living operations. We think it was a great not only platform for Wisconsin but great facilities in and of themselves even if we didn't acquire anything else. But you are right. We will have much better visibility into Wisconsin than we've had in the past because these are spread throughout the state and we like that state a lot.

That's great. Maybe just a last one on that point, a technical question. So there's some leases associated with these. How should we think about the lease expense related? Are they operating leases and --

They're operating leases. Yes, definitely. They're operating leases. I mean I think you would think -- just like every other assisted living that we've brought into it, they're relatively good rates. We did pay some key money up front that will be amortized over the lease.

Ryan, this is Chad. I know we noted this, but the acquisition in Wisconsin, that lease actually has a purchase option for all the real estate for all 15 facilities.

Okay. And then last one from me, how should we, or how are you guys viewing the growth profile of the home health and hospice segment? Is it still predominantly and acquisition story? Or judging by the increased disclosure and the strong EBITDA growth, is there a pretty good opportunity for organic growth? Is that kind of how you're looking at that business now for some more material organic growth in the near term?

It's not so dissimilar -- I worry that somehow people might think that we are now taking nothing but performing assets on the skilled side. The vast majority of what we're taking in home health and hospice, and in skilled nursing, and in assisted living are still underperforming assets. So to answer your question directly, we think we have significant organic upside in our cornerstone portfolio.

We still will take acquisitions. We still will, every once in a while, buy the right performing operation. But most of these that we're taking are either underdeveloped or underperforming assets that just need to change their quality of services or their reputation, or in some cases just some of the marketing efforts that they've made. And we think it is probably more of an organic growth story than it is an acquisitional growth story. But you will still see us make acquisitions.

All right, great. Thanks for taking my questions.

Thank you. Our next question comes from Elizabeth Moran of Stifel. Your line is open.

Hi, this is actually Elizabeth calling for Chad Vanacore. Was the Medicare rate increase and rules for 2016 finalized? Do you have any early thoughts on how the new rules on reporting and quality metrics will impact the business?

I can take that one. No, we have been working on a lot of the quality metrics that they're rolled out, just the three that they've rolled out for a long time already. And so we feel really good about what they're rolling out. Obviously, we don't get measured from a reimbursement impact on those until 2018. But we feel really good about those. We have systems in place and have been working on them for a long time.

So on balance for an opportunity rather than a challenge for you?

Correct.

Okay, and then just sore of more broadly, I know you spoke about the rent impact from the Wisconsin acquisition. But more broadly in terms of all the acquisitions and the acquired leases, how should we be thinking about the impact to rent and maybe [D&A] also in the second half.

Yes, so all of the acquisitions that we have taken are all operating leases. And so they'll be included in the operating -- the rent line. None of it will be included in depreciation or amortization line.

And no quantifying that at this point?

No, not at this time.

Okay, and then just one last one. The same facilities skills improved, skill mix improved substantially for this quarter year-over-year. Do you foresee that sort of rate of improvement continuing or should we expect some moderation in the future?

That's a good question. Look, as we have substantial growth, it could be more difficult, I suppose next year. But remember, we have a large number of facilities that will move into the same-store bucket and will be early in that same-store bucket when you compare next year to this year. And so I think there are quarters where we don't do as well as we wish we would do, but I don't see any slowing given what I see early in third quarter and given some of the efforts of the resources that are working on the field, and more importantly, the folks that are in the facilities.

So I guess the shorter answer to your question is we feel good about the pace continuing.

Okay, well that is it for me. Thank you. I'll hope off.

Thank you. Our next question comes from Frank Morgan of RBC Capital Markets. Your line is open.

Good morning. You touched on the Medicare environment and the Medicare rate outlook, but just curious as you look around some of your key states, how do you see the Medicaid environment shaping up in a lot of the states that you operate?

Frank, this is Barry. I think pretty similar to what we saw last year, most of it will happen towards the end of this year and from what we see so far, some states aren't finalized with their legislative sessions and finalizing budgets. But it looks pretty similar to what we saw last year, pretty much either slight increases or decent increases in most states.

Yes, we're really pleased with what's out there right now.

So for our purposes, maybe flat to up 1% on the Medicaid side?

I think that would be on the low side, Frank, for our states. I think for the states that we're in, because of what we're seeing where we dominate, I think it's probably more closer to 2%.

Okay, and in terms of those states that are the bigger ones that matter, could you maybe call out some of those and the kinds of rates you're seeing there specifically?

Again, nothing's really finalized. California has announced kind of a preliminary rate, which looks higher than it actually ends up being when it nets out. But it's in that range that Christopher mentioned. From what we're hearing, Texas and where we have a large presence, and Arizona are similar.

As well as Utah.

So those are our four biggest states by far and that's -- those are the four that impact us the most and they're all -- they've all announced positive rate increases.

Got you. And on the subject of Medicare, maybe just a thought about this comprehensive care joint replacement model thing that a lot of people are talking about now. Is that something you'll participate in, your facilities will be involved in that? And what do you think about it?

Obviously, we've talked about before that we're participating in the value-based purchasing model. We actually have ourselves in model 3 and so the joint replacement run by the hospitals will just pair really well with what we've got going on and some of the systems, and processes, and procedures that we've put in place, as well as the people that we have in place aligned. I think that there's still questions on who will control some of these patients between the two models. But we're excited about it and we think it really goes well with the VPIC model that we have, to the extent that we have a little bit more control over the patient.

And Frank, just as far as strategically how we're aligning ourselves, we are adding expertise and resources to make sure that we gear ourselves towards a value based reimbursement environment, rather than the one that we're currently seeing ourselves in. So this is a path of progression that we see ourselves moving towards.

Okay, thanks.

Thank you. Our next question comes from Dana Hanbly of Stephens. Your line is open.

Thanks, good morning. Christopher, could you just -- how would you define what you're calling a breather?

That's a good one. Well, look, July and August were pretty significant acquisition months. I guess you won't see a repeat of those this year. But there are some other deals that are great opportunities for us and so I don't know if I can say a number. But you'll still see us make a handful of deals.

Okay, but this wasn't a situation where you'd done a bunch of deals and you kind of stepped back and said either one, we're not ready for this -- we haven't invested enough to be ready for this, or something happened that triggered that you necessitate that you just kind of put everything on hold.

That's a great point of clarification. Absolutely not. It's just that it does take some work on the deal side and on the operational side. And we advance these things and pushed them through, and got them done. And now, it's time to work on the other ones. But it'll take a little while. So --

I'll just sort add to that. We're always very cognizant of the effort that goes into each and every one of these transitions. And typically, we'll do what we can to kind of spread it out a little bit. But deals close when they close, and we just happen to have a lot happen in July and August. But yes, it's -- the stuff that we kind of have remaining is just kind of a matter of timing.

It also doesn't mean that we're turning down deals that we would otherwise do. I mean I think it's just a -- there's a good window right now that allows us to transition these effectively.

Great. All right. Very helpful. And then on, Suzanne, on the cash flow, I know you guys generated over $60 million in EBITDA so far this year. Operating cash is about $6 million, $7 million so far. Should we see that pick up pretty meaningfully in the second half of the year?

Yes, one of the things that slows us down is when we have the new acquisition that as you might recall is that some of the cash is hung up in accounts receivable until we can actually collect those funds as our license gets approved. So we're going to have that because we've had pretty large acquisitions. That's going to continue on for the next little while. It takes about six to nine months for that cash flow to catch up with us from those acquisitions.

So you'll continue to see the receivables billed for a while and then we'll get some relief at the beginning of next year, later this year.

Okay, and then last one from me. You said there's $100 million available on the revolver. Was that as of the quarter end or is that as of now?

As of the filing date, as of now.

As of now. All right, thanks very much.

Thank you. At this time, there's no other questions in queue. I'd like to turn it back to management for any closing remarks.

Again, we appreciate everybody's time and thank you, Vince, for managing this call.

Thank you. 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.