Hanger Inc (HNGR) 2018 Q3 法說會逐字稿

Greetings, and welcome to the Hanger's Third Quarter 2018 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Seth Frank, Vice President of Treasury and Investor Relations. Thank you. Mr. Frank, you may begin.

Thank you very much, and good morning, and welcome to Hanger's Third Quarter 2018 Earnings Conference Call. With us today are Vinit Asar, Hanger's President and Chief Executive Officer; and Thomas Kiraly, Hanger's Chief Financial Officer.

Some of the information discussed today will include forward-looking statements in the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause Hanger's actual results to materially differ from those we discuss today. Those risks include, among others, matters we have identified in the forward-looking statements portion of our latest earnings release and in our filings with the SEC. Hanger disclaims any obligation to update forward-looking information discussed on this call.

And with that, I'd like to hand the call over to Vinit Asar, Hanger's CEO and President.

Thank you, Seth, and good morning to all of you. And thank you for joining Hanger's 2018 Third Quarter Earnings Call. I will review the highlights of the quarter, Tom will give you additional insight into the numbers and then we will take your questions.

Overall, from a financial standpoint, our third quarter performance was largely as anticipated and generally consistent with the business trends we have seen year-to-date. Hanger net revenue totaled $263 million, grew just under 2% year-over-year, and reflected growth in both our Patient Care and Products & Services segments. Adjusted EBITDA for the quarter was $31 million, an increase of just over 5% compared to the same period last year, outpacing the top line and benefiting from the positive flow-through of revenue growth in our Patient Care segment. We're also pleased with the margin expansion and cash flow generation during the quarter, and Tom will provide details on those metrics.

Looking at the business by segment. Patient Care was a standout from a profitability perspective this quarter. Patient Care segment revenue was $214 million and reflected 1.6% growth over the prior year. We have focused our marketing efforts with referral sources and patients, primarily in the area of prosthetics. Prosthetics are a key growth driver of our business, and we were pleased to see 3.1% growth in Q3. We have begun focusing on similar efforts to support growth in key custom orthotic service lines as well.

In addition, we are evaluating more efficient ways of delivering lower end products, such as off-the-shelf orthotics, shoes and inserts where we have historically put very little focus. Separately, we also manage our clinic businesses regionally, and we are encouraged to see that a majority of our regions have begun to show above-market growth rates. We will continue to manage our business by our portfolio of service offerings, both prosthetics and orthotics. And also, given that health care is local, monitor and provide leadership and guidance to our regional teams.

The Products & Services segment delivered results similar to recent quarterly trends, achieving revenue growth of 3.2%. Segment revenue growth was driven by good top line performance in our distribution business. This was primarily the result of share gains and increased volumes from our client base of independent O&P providers. We have been pleased with the leadership and focus of the distribution team. There has been a significant enhancement of the sales force, an upgraded online presence and an expanded product portfolio offering, which we believe has contributed to the growth of our distribution business.

Our therapeutic solutions revenue declined modestly in Q3, slightly better than our expectations. The team has been focusing their efforts on revamping the overall value proposition to their customers in long-term care. While we expect the decline in this business to continue into 2019, we are hopeful that the efforts underway will help stabilize the business during the next year.

Let's turn to an update on our strategic growth initiative and some operational highlights. We had the pleasure in late August and September of reengaging proactively with institutional investors in meetings and conferences around the country. We highlighted 5 pillars that we believe differentiate Hanger in the O&P market. These are our national network, centralized revenue cycle management, patient engagement strategies, our clinical outcomes agenda and our enterprise supply chain. Taken together, these strategic pillars form a road map for Hanger to become a disruptor and transformational force within the orthotic and prosthetic industry.

During the third quarter, we continued to make progress across these initiatives. Today, I'd like to share a bit more with you about recent activities related to 2 of these differentiating pillars: patient engagement and clinical outcomes.

With regards to patient engagement. In September, we hosted EmpowerFest 2018 just outside of Boston. This is one of the many patient-engagement events we host around the country each year for individuals with limb loss and limb difference. At these events, we invite Hanger and non-Hanger patients alike. The focus of this particular 3-day event was in empowering patients by building peer support through their participation in a range of educational and physical activities. We hosted over 80 participants and their family members. We also invited

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The feedback we received was exceptional. The post-event digital exposure of EmpowerFest was also significant. We estimate, through Hanger's social media campaigns and content on our website, over 212,000 people were reached. In addition, we have begun to see some non-Hanger patients that attended EmpowerFest become Hanger patients as a result of the experience they had at the event. We're planning to hold more national and local events that target the needs of the various patient communities we serve.

As a further action tied to our patient engagement agenda, we were also pleased to announce this quarter an exciting proof-of-concept launch partnering with AT&T for the industry's first stand-alone network-connected device for prosthetic limbs. Our prototype device is designed to attach to below-the-knee prosthesis and syncs directly to the cloud via AT&T's mobile network. This connectivity allows Hanger to receive data on patient's prosthetic usage outside of clinical settings. The potential implications for quality of care and data analytics are profound as we explore migration to a connected patient and the Internet of Things in health care. This company-wide emphasis on patient engagement is just getting started as we continue to invest in this area to help drive sustainable growth in patient referrals.

The second key differentiating pillar that we made notable progress on in the third quarter was on our clinical outcomes agenda. In a world of value-based care, it is mandatory to demonstrate a quality and value equation that will be compelling to payers and referring providers. In the third quarter, we launched our Nothing Beats Me campaign. This consists of direct-to-consumer and direct-to-referral sources, illustrations of Hanger's differentiated approach to clinical care by tracking individual outcomes measures for prosthetic patients. We are rolling this program out nationally.

During the quarter, we also continued to expand and leverage our electronic health records platform, which is now rolled out at 88% of our clinics. This system provides data capture and analysis capabilities that help feed our ambitious outcomes-based agenda. To date, this has resulted in the publishing of a number of significant medical papers and peer-reviewed research reports.

During the quarter, clinicians from Hanger's Clinical and Scientific Affairs team presented papers at the AOPA Annual Meeting and Scientific Symposia in Vancouver. Topics included quality of life and mobility as well as the impact of co-morbidity on patients with lower limb amputations. Other major medical conferences where Hanger is presenting clinical work include The American Academy of Physical Medicine and Rehabilitation and the Society for Vascular Surgery's Annual Meeting. The presentations at these meetings are targeted to national policy makers, payers and perhaps, most importantly, our referral source community.

It was just over 1 year ago that we announced a publication of a landmark study in lower limb amputees known as the Mobility Analysis of Amputees, or MAAT I. This was the largest study of its kind to date that concluded there was a significant positive correlation of mobility to quality of life and patient satisfaction for people living with lower limb loss. We have continued to build on this body of literature. MAAT II has just been published in the November issue of the American Journal of Physical Medicine & Rehabilitation. Many times, in the absence of evidence, referral sources and payers may believe that an amputee with co-morbidities may not benefit from a prosthetic device. And the publication of this study will help better inform these beliefs and allow for more thoughtful and outcomes-driven patient care.

I'm also pleased to announce the recent acceptance of the MAAT III study for publication by the Journal of Assistive Technology (sic) [Journal of Assistive Technologies]. MAAT III is a large-scale retrospective review of outcomes for patients with lower limb amputations across over 400 Hanger clinics within the United States. The results showed, when patients are matched with co-morbid health, those patients with a microprocessor knee have increased mobility over their peers that were provided a non-microprocessor knee. This particular study has 3 accurately matched cohorts of 150 patients each. In order to conduct a study of this magnitude and demonstrate statistical significance, an expansive database of several thousand patients is required. At Hanger, we are very proud to have assembled an outcomes-based database large enough to allow us to continue to understand the best treatment for our patients and likely, the only outcomes database in the O&P industry of its size.

In addition to these studies, I'm also pleased to share with you that Hanger has entered into research collaborations with premier medical and academic institutions around the country, including the University of Washington, the University of Texas, the Veterans Administration in Salt Lake City, the University of Missouri, the University of Colorado Medical Center and others to further develop a robust foundation of evidence relating to the prescription and utilization of prosthetic devices. We will share more about these collaborations in the future.

The bottom line is that our patient engagement strategy, combined with Hanger's outcomes agenda, enables us to continue to lead the industry with data and programs that will demonstrate the true value of O&P care in modern health care delivery and the distinction of Hanger as being the most capable provider of this care.

The other area I know many of you are interested in is Hanger's growth strategy regarding clinicians and clinics, particularly with respect to M&A. With a strong organic growth strategy in place, good cash flow and a healthy balance sheet, we believe commencing a targeted in-market acquisition strategy for O&P strengthens us geographically and further enhances access to care for our patients. We have a healthy pipeline of acquisition candidates that we are in active conversations with. We are pleased with the progress we are making on this front. And while we cannot predict closing dates at the current time due to the nature of negotiations, we plan to provide you an update on our activities when we report our Q4 results.

Now before I hand the call to Tom, I am delighted to announce that Hanger patients, associates and friends of the company will participate in a celebration of our nation's veterans on Monday, November 12, when we ring the opening bell at the New York Stock Exchange. It will be an honor to pay tribute to our nation's heroes who we serve every day, including some of our own Hanger veterans.

And with that, I will ask Tom to go through the numbers.

Good morning. We're pleased with Hanger's overall financial performance during the quarter. We believe there are 3 key takeaways in the results. The first is that expanded margins and related earnings growth from the Patient Care segment offset increased corporate expense to provide $1.5 million in overall EBITDA growth for a total of $31.1 million in adjusted EBITDA. Secondly, despite ongoing headwinds in our therapeutic solutions line of business, the Products & Services segment, as a whole, produced generally stable adjusted EBITDA. And thirdly, that Hanger continue to report strong operating cash flow and increases in overall cash and liquidity balances.

In my portion of this call, I'll provide you with further background on our individual business segment and consolidated earnings trends. I'll also discuss our growing levels of cash flow and liquidity, and we'll finish up with a summary of how these results line up with our expectations for the remainder of the year.

First, let's spend a few minutes on the Patient Care segment. Patient Care reported 1.6% revenue growth for the quarter. When reviewing this rate of growth, please bear in mind that we implemented ASC 606, the new revenue accounting standard, earlier this year, and that resulted in the reclassification of bad debt from expense to becoming an offset to revenue. Since we did not classify bad debt in this manner in 2017, on a pro forma comparative basis, Patient Care's underlying revenue grew at 2% in the quarter and 1.5% for the year-to-date. Our same clinic revenue grew at 2.1% in the quarter or 0.5% on a day-adjusted basis. The day-adjusted calculation isn't necessarily useful when reviewing the third quarter results because the extra day we're using in the computation was July 3, which, given its lower-than-average volume, was granted as an employee holiday and excluded from the calculation in the prior year. Within the underlying rate of 2% growth in this segment, as Vinit discussed, we continue to show pronounced growth in prosthetics, which grew 3.1%. Prosthetics constituted 54% of our revenue in the quarter as compared to 53% in the same period last year.

A final note on Patient Care's revenue. While we do believe hurricanes can have an effect on our results, given the natural tendency for patients to reschedule around these weather-related events and the fact that they affected us in both years, it's difficult for us to assess their net impact on third quarter revenue. From an expense standpoint, while the Patient Care segment did continue to show an increase of approximately 40 basis points in its materials cost rate, as it has throughout the year, personnel and other expense decreased as compared to the third quarter of 2017. These decreases came from an underlying decline in bad debt expense, benefits cost and incentive compensation. Because of these expense trends, Patient Care's adjusted EBITDA margin increased to 17.8% as compared to 16.6% in the third quarter of 27 -- 2017, and it stands 70 basis points higher than the prior year at 16.5% for the year-to-date. This margin expansion provided $3.1 million or 9% in adjusted EBITDA growth.

In reviewing our Products & Services segment, growth of 6.9% in distribution services more than offset declines in revenue from therapeutic solutions, resulting in an overall segment growth rate of 3.2%. Looking forward, we anticipate a moderation of near-term growth in the Products & Services segment, primarily due to a lapping of the higher-than-normal rate of growth in our distribution services and the continuation of the decline in revenue from therapeutic solutions.

Income from operations and adjusted EBITDA from the Products & Services segment was reasonably consistent with the prior year. As we discussed in past earnings calls, corporate expenses continued to reflect growth over the prior year and increased by $1.4 million in the quarter as compared with the same period last year. This increase is primarily related to increased compensatory and professional cost. On a consolidated basis, after including the beneficial effect of declines in third-party professional fees associated with our continuing accounting process and controls remediation and decreases in depreciation and amortization expense, Hanger reported a $6.4 million increase in income from operations. These favorable operating results, coupled with reduced interest expense resulting from a refinancing earlier this year, led our net income to grow by $8.5 million from a $4.2 million loss in 2017 to a $4.4 million profit in the recent quarter. On an adjusted basis, our earnings per share increased from $0.06 in the third quarter of last year to $0.22 in the current year period.

When reviewing our cash flow, the company produced $20.3 million in operating cash flow, which compares favorably to the $5.3 million produced in the third quarter of last year. This increase in operating cash flow is the direct result of operating growth, declines in our payment of professional accounting and legal expense and reduced rates of interest. Capital expenditures were $7.7 million, which continues to put us on pace to spend in the low $30 million range for the full year. This free cash flow production resulted in a $12.2 million increase in our cash and cash equivalent balance and brought us to $61 million in cash and cash equivalents at the quarter's end. We anticipate the cash balances will further increase during the fourth quarter as they have in past years but would remind you that due to seasonality and the payment of our annual incentive compensation, the company typically has a net use of cash for operations in the first quarter of each year.

As Vinit discussed, we are in the process of recommencing our acquisition of orthotics and prosthetics practices. And in addition to funding working capital swings, we currently intend to retain cash for that purpose.

Reviewing our indebtedness net of cash. The company has net debt of $460.7 million or 3.8x trailing 12-month adjusted EBITDA. Given that we have a $325 million 6-year interest rate hedge against our term loan, we don't currently anticipate significant exposure to rising rates and are paying an effective rate of 6.2%. Our plans are to continue to gradually lower leverage over the next 12 to 18 months into the 3.5x range.

Before I wrap up with the discussion of our trends for the full year of 2018, I'd like to spend a moment briefing you on our implementation of the new lease accounting standard, ASC 842. As you probably know, this new lease standard generally results in an overall increase in the assets and liabilities of companies having leases as they're required to determine the present value of their future lease obligations and establish a right of use asset in a commensurate liability. This new standard will take effect as of January 1, 2019. In our case, while we are continuing to evaluate and implement the nature of the standard, we currently believe that this will result in an increase to our balance sheet of roughly $150 million. And due to the conversion of built-to-suit leases to operating leases, will result in an increase in lease expense in the $2 million range with most being offset as a reduction in interest expense. We will share more on these effects in our conference call on the full year 2018 results in the first quarter.

Now I'll provide you with some perspective on how our results in the third quarter fit in the context of our overall 2018 guidance. With the $31.1 million in adjusted EBITDA we reported in the third quarter, Hanger now has a year-to-date level of $81 million in adjusted EBITDA, which is reasonably consistent with the $80.8 million we reported for the year-to-date through September of last year.

As you've seen from our results this year, with the exception of materials cost, our personnel, general and administrative and other cost structure does not necessarily respond to variation in revenue from one sequential period to the next. And this can naturally introduce some quarterly volatility. We had favorable adjusted EBITDA growth in the first quarter, an unfavorable comparison in the second quarter and a favorable comparison in this most recently completed period. As such, we'd ask that you don't place an undue emphasis on the rate of growth that we produced in the third quarter, but rather view Hanger in the context of its year-to-date results.

With that, in mind, in yesterday's earnings release, we reaffirmed our 2018 outlook, which is that we anticipate our revenue and adjusted EBITDA for 2018 will be generally consistent with 2017 results. Our current intention is to provide you with our guidance for 2019 when we release our final 2018 financial statements in the first quarter.

Thank you for your attendance on our call this morning. And with that, I'll turn the call back over to the operator to open it up for any questions that you may have.

(Operator Instructions) Our first question comes from the line of Brian Tanquilut with Jefferies.

So first question for me is that as I think about organic growth, and Tom, thanks for explaining the detail but -- on the nuance in the quarter with July 3, but how should we be thinking about your outlook or your view on where you can bring your organic growth to on a volume basis relative to industry in average growth?

I'm not sure I heard you. You kind of cut out. Can you repeat the last part of your question?

Yes. How you're thinking about regaining your ability to drive organic volume growth? And then kind of like the factor -- one factor of which is where the industry is growing.

Sure. Yes. I think the way to think about it is the efforts we're putting in on the various parts of our portfolio, the prosthetic marketing efforts that I just shared with you, I think those will certainly drive organic growth from the prosthetic side, as we have seen already year-to-date. This past quarter, we had a 3.1% growth in prosthetics. We'd like to see that continue with the efforts we're putting in. On the orthotics we're focusing a little more on the custom orthotics piece of it. So we're hoping to see some of that uptick in the coming quarters as well. And then regionally, we had some variation in regions around the country, the way we manage the country. We are focusing on some of the lower-performing regions to make sure that the different needs they have are addressed because as you can imagine, different regions have different issues. But the majority of our regions today are showing above-market organic growth. And we expect that to continue in the coming quarter.

Got it. And then, as I think, Vinit, about your move to reduce your exposure to the commodity orthotics, how much longer do we have in that effort in terms of just lapping that initiative and how it's dragging on the same store?

Well, we actually -- if you think about it, if you rewind back, we started that effort a couple of years ago. We used to be heavily invested in initiatives like CARES and Dosteon, which were primarily that part of the product portfolio which we've exited from now. And as we continue to look forward, it's not just -- it's more about figuring out how to deliver those lower-end products in a more efficient manner; I mean, is what the focus is at this point.

Got it. And then, Tom, as I think about Medicare rates for 2019, you said CPIU is already out there. How are you thinking about that? And how does that flow through to the commercial side of your business?

Yes. I think it's a good question. So as we all know, the CPIU came out at about 2.9%, the year-to-date through June, which is the base factor that CMS will likely use for reimbursement. They're going to pull a productivity factor off of that. Traditionally, that -- in the recent years, that's been about 50 to 60 basis points. So we'd probably be anticipating a low 2% rate growth for 2019 in the Medicare area of our business. Now that rate is used as a reference rate by commercial carriers and Medicaid, but I would say that there's a dampening of the flow-through because not -- those contracts some of them reference the rate automatically, but many of them, it's more of a delayed response or something that we have to negotiate to. So there'll be some moderation down into the mid-1% to 2% range on that rate, but that's still favorable to the rate we have this year, which would have been significantly lower than that.

All right. The last question for me. As I'm thinking about the disallowance, I know that's something that you've been focused on for a while, if you don't mind just giving us an update on where you are there and if you think you can bring that down further; because I know you've already brought it down quite a bit over the last few quarters.

Yes. I mean, so first of all, let me start by saying that the disallowance rate did tick up slightly in Q3. But when you look at it on a year-to-date context, it's very similar year-over-year as we've talked about. We're sitting at about 4.5% year-to-date compared with 4.4% last year. We consider that to be pretty much flat. And at the time -- for the time being, we continue to see that being relatively constant going forward. We don't see a trend one way or another, although we are incentivizing and encouraging proactive action in our revenue cycle group. The other thing I want to share with you is when you look at bad debt and disallowed together, we've actually had quite a big improvement. On a combined basis in the quarter, bad debt and disallowed, on a combined basis, went from $11.8 million down to $11.3 million or 5.4% down to 5%. So we had some nice improvement in the quarter and in the year on a combined basis for those 2 factors. But certainly, it's something where I wouldn't go to anybody and ask them to model further improvements either as we go towards 2019.

(Operator Instructions) Our next question comes from the line of Dana Hambly with Stephens.

Tom, I wanted to go back to the day-adjusted growth. I want to make sure I understand this. You're saying the better indication of the underlying growth is the 2.1%, not the 0.5%? Could you just help me understand that?

Certainly. In 2017, July 3, which is pretty much a non-day for us, came on a Monday. And July 4 was a Tuesday. And so the company has a holiday that it grants -- a floating holiday -- and it granted it on July 3 last year. So everybody have the day off and it wasn't a business day. This year, July 3 was a Tuesday. We had it as a business day. But as you might imagine, patients don't really want to schedule on July 3 because they're seeing it as a holiday and our employees take holiday pretty heavily on that day. So it's really not an effective business day. And if you take 62 business days in a quarter, one of those days adds up to 1.6%. So it would put some noise on that day-adjusted calculation in this particular quarter. Normally, the calc, I think, works pretty well.

Got it. So it's not like you lost those days last -- lost those visits last year, it would have been just patients rescheduling, correct?

Exactly.

Got you. Okay. And just -- Vinit, did you -- I think you, in your prepared comments, talked about something on the off-the-shelf orthotics. You said, historically, little focus. I wasn't -- does it continue to be little focus? Are you trying to exit that business? Or you're putting more focus on it? I wasn't sure what you were saying.

Yes. I appreciate the question. We don't plan on exiting the business. But really, in the past, we haven't focused on it much in terms of marketing to our referral sources. Going forward, what we believe the right thing for this business is to figure out more efficient ways to deliver it. So we'll focus more on the delivery of the lower end of the shelf products as well as the shoes and inserts, make it more efficient, is what we believe we have to do. Because the referral sources would still want us to be able to provide a full suite of products, and off-the-shelf orthotic shoes and inserts would be a part of it. So the focus will be on delivering it more efficiently because today that's low-margin product.

Okay, okay. And then, some comments on M&A. So glad to see we'll be hearing more about that soon. As you look at targets, how should we think about these? Are these performing assets? Are these nonperforming assets? Is it kind of one facility at a time or clusters of facilities? Could you just help us think about that?

Sure. Certainly, we'd be focusing on assets or businesses that are performing, that are healthy. We'll be focusing on businesses that align with us culturally as well as align with us in terms of compliance standards. And certainly, geography is an important part as well. Today, we have a pretty robust database of what O&P dollars are being spent by payers around the country for every CBSA. So we know where the gaps are in our coverage. So that's how we begin to look at what the targets should be or where we should go for M&A activity. In terms of size, we're looking at the gamut of sizes. Depending on the geography, small, medium and large, it will be businesses depending on what our needs are.

Okay. Last for me. Tom, CapEx, I thought we had -- you had targeted may be $30 million to $35 million. and I think, year-to-date, you run about half of that. Has that target come down? Or is there -- are you going to make it all up in the fourth quarter?

Yes. Don't forget that when we're talking about CapEx, we're certainly describing both line items, both the CapEx line item on investing activities as well as the purchase of therapeutic program equipment. And so when you put those 2 together, I think you'll see us much -- trending much closer to the numbers we're describing. We see them both as capital expenditure, but we just break the one out for more transparency around the Therapeutic Services program.

Got it. And I'm sorry, remind me what level is related to the Therapeutic?

Yes. So for example, in this quarter, we spent about $2.6 million on the therapy equipment, and we'll be at about $6.4 million for the year-to-date. So that will be up around $8 million or $9 million by the end of the year.

And that's part of that $30 million to $35 million?

It certainly is.

(Operator Instructions) Our next question comes from the line of Larry Solow with CJS Securities.

Just -- I've got questions on the outlook for -- on the cost side, I know you discussed a little bit on the revenue and the top line side. Corporate cost seemed to be somewhat stable the last few quarters. I know you guys have talked about a desire, certainly, to continue to invest in the business. But do you think you're at an adequate level on that side? And going forward, could you maybe start getting a little more leverage as we look out '19, '20 and beyond?

I think, from my perspective, we are at an adequate level. I don't see a significant uptick from here on. And we certainly have increased the spend this year compared to last year. But I believe we're at the optimal level.

Got it. And then, just on the acquisition front, just a follow-up to that. Obviously, with the dramatically increased reimbursement requirements and paper trails and all that needed, I imagine there are a lot of companies out there who are performing well on an operations basis. But maybe back office and dealing with reimbursement and stuff is putting some strain on the business and perhaps more opportunities out there than there were 5 years ago. Is that a fair statement?

It's fair. But just as we invested in our back office operations, there are good businesses out there that are also looking at reengineering their own operations the same way. So I would say the pipeline is about the same or maybe slightly better, but the businesses we're looking at are the stronger businesses.

Yes, Larry, I'll just add that when we go through the diligence process, that's obviously a key part of our diligence and integration process just to make sure that net-net, when we bring our administrative practices to bear, that we're net better off.

We have reached the end of our question-and-answer session. I would like to turn the call back over to Mr. Asar for any closing remarks.

Yes. Thanks, everyone, for joining this call. Just a reminder, we're just excited for -- to be able -- on Monday morning, to be able to ring the New York Stock Exchange bell in honor of our nation's veterans with our veterans and patients as well as employees with us. So we appreciate your interest in Hanger. Thanks very much.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.