愛德士 (IDXX) 2007 Q1 法說會逐字稿

Good day, everyone, and welcome to the IDEXX Laboratories first quarter 2007 earnings conference call. Just as a reminder today's conference is being recorded.

Participating in the call this morning are John Ayers, Chief Executive Officer, Merilee Raines, Chief Financial Officer, and Jim Marrotti, Director, Investor Relations. IDEXX would like to preface the discussion today with cautions -- listeners are reminded that the management of IDEXX [inaudible]-- future expectations and plans, and IDEXX future prospects constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to, statements regarding management's expectations for financial results for future periods, and the timing of new product introductions.

Listeners are reminded that actual results could differ materially from management's expectations. Factors that could cause or contribute to such differences are described in IDEXX'sAnnual Report on Form 10-K for the year ended December 31st, 2006, in the section captioned risk factors which are on file with the SEC, and also available on the IDEXX website, IDEXX.com. In addition, any forward-looking statements represent IDEXX's estimates as of today, and should not be relied upon as representing the Company's estimates as of any future date.

The Company disclaims any obligation to update or revise any forward-looking statements in the future, even if it's estimates or expectations change. At this time, I would like to turn the conference over to Merilee Raines. Please go ahead.

Thank you, Shelly. Good morning and thank you for joining us today. I will start off with a review of financials, both the first quarter and our thoughts for the year. John Ayers will share with you an update on the business, then we will welcome your questions.

As you have seen in our earnings press release today, revenues for the quarter were $211.2 million, a year-to-year increase of 26%, and diluted earnings per share were $0.65, a year-to-year increase of 18%. We had discrete items associated with acquisition integration of $0.03 in the quarter. So year-to-year EPS growth adjusted for these items was 22%. Our earnings were higher than we had anticipated, due to strong revenue performance, lower operating expenses, and a lower tax rate. The favorability in these areas was offset somewhat by a lower than anticipated gross margin percentage.

I will now provide some highlights on the P&L. As I begin with the top line, I remind you that we are now providing a table in our earnings release, detailing revenues by product and service category with related reported growth and impacts on growth from currency and acquisitions.

I refer you to this table for comprehensive data as I touch on selected areas. The first quarter revenue growth of 26%, included 3% growth from currency and 6% from acquisitions, so organic growth was 17%. The stronger than anticipated revenue growth for the quarter was largely attributable to our IDEXX [vet lab] Instruments and Consumables, and our Laboratory and Consulting services where we saw incremental volume in the latter part of the quarter, that we believe is related to additional testing for health monitoring, in light of the pet food recall that began in mid-March.

We estimate that this additional testing increased in-clinic and laboratory revenue by almost $2.5 million for the quarter. In addition, our point of care rapid assays had solid organic growth of 16%, as we saw continued conversion of testing from heartworm only and SNAP 3Dx to our new SNAP 4Dx heartworm tick panel. In the first quarter, 4Dx represented about one-third of heartworm tick test sales to veterinarian practices. The rapid adoption of this panel, which was introduced in September of last year, gets us off to a good start to the 2007 testing season.

Our IDEXX vet lab consumable revenues are continuing to benefit from strong instrument placements. Instrument revenues of $13.1 million grew organically 33% year-to-year. Though the first quarter of last year was somewhat of a weak comparison, we are seeing the benefits that a larger, more seasoned sales force, and expansion of the suite are having on sales of all of our instruments. Suite expansion through the addition of components such as the urinalysis instrument and the IDEXX vet lab station, helps with the retention of current customers, and increased utilization of in-clinic testing overall.

Instrument consumable revenue of $48.5 million grew by 15% on a constant currency basis. We estimate that this consumable growth was still strong at 11%, after further adjusting for the impact of the pet food recall. U.S. distributor inventory levels for our rapid assays and instrument consumables came down some from levels at year end, to 3 to 4 weeks based on forward-looking demand.

Year-to-year changes in distributor inventory levels had relatively minor impacts on revenue growth rates, and adjusting for the changes would reduce rapid assay and instrument consumable growth by approximately 1 to 2%. As mentioned, our reference laboratories and consulting services had strong performance in the quarter with 33% reported growth.

The acquisitions completed since the first quarter of 2006 added 13% to revenue growth, with the two largest contributions being the Canadian Lab Networks, that we acquired late in the fourth quarter of 2006, and in March of this year. Adjusting additionally for currency, organic growth was 17%, and we estimate that the pet food recall testing contributed 1 to 2% of this growth.

As for the longer term growth rates for our Companion Animal Group product and service lines, we reaffirmed the 8 to 10% growth rate for rapid assays that we adjusted upward last quarter. Based on our current outlook, we are increasing the anticipated growth rate of the IDEXX vet lab consumables to 8 to 10%, and reference lab services to 13 to 15%. For both lines, this is an upward shift of 1 point to the range.

With regard to the recent acquisitions of Central Laboratory for Veterinarians last December, OPTI Medical Systems at the end January, Vita-Tech Canada, and Institut Pourquier in early March, we have been quite busy working with the teams from these companies on integration efforts. We are very pleased with the early progress we are making, and with the performance of these new additions to IDEXX. The overall revenue from these businesses and bottom line contribution was on-track with our projections for the first quarter. I will speak more about the components of their EPS impact in a moment.

Moving down the P&L, our gross margin at 51.4% was about 0.5 point below our thinking in January. The majority of the variance related to acquisitions. The addition of Vita-Tech subsequent to our January call, the realignment of the accounting for some costs in our new lab, from operating expenses to cost of sales in accordance with our practices, and discrete purchased accounting, associated with the acquisition of Institut Pourquier, that was accelerated in timing versus our original thinking.

Operating expenses, including R&D and SG&A, were 37% of revenues. As mentioned, these expenses were lower than we had expected, largely due to slower than anticipated hiring, and some timing shifts in program spending. Our tax rate at 32% was a couple of points below our guidance in January, due largely to the impact of acquisitions shifting our mix of profits to relatively lower tax rate jurisdictions. Additionally, we were favorably impacted by statutory changes to the computation of the tax credit for Research & Development.

With regard to the balance sheet and cash flow, we ended the quarter with $54 million in cash. In the first quarter, we entered into an unsecured five-year revolving credit facility with our four primary relationship banks. The facility is for $125 million, and we had $75 million outstanding at the end of the quarter. Free cash flow as defined in our press release was negative $9 million. As has been the case in previous years, the first quarter tends to show use of working capital for regularly occurring items, such as tax and annual compensation payments, and increases in receivables, due to the beginning of the ramp for the spring and summer testing. In addition, 2000 revenues were impacted late in the quarter by the pet food recall, which resulted in increased distributor orders and higher associated receivables.

With regard to our latest outlook for the full year 2007, we now project revenues of $890 to $897 million. This would represent a reported growth of 20 to 21%, with acquisitions estimated to contribute about 7%, and currency to contribute 1%, so organic growth of 12 to 13%. We project the growth rate for the first half to be 2 to 3 points above the total year growth rate, due to the relatively easier compare with the first quarter of 2006, the temporary impact of the pet food recall, and a lower favorable impact of currency in ensuing quarters.

We project gross margin as a percent of revenue to be about 52% for the total year, and relatively on par from the first half to the second half. This is at the lower end of the guidance we gave in January of 52 to 53%, due to the aforementioned impact of laboratory acquisitions with their relatively lower gross margins. As noted in the past, the gross margin percentage tends to be highest in the second quarter, due to normal seasonal revenue mix.

Discrete items associated with acquisitions related to integration and purchase accounting, are projected to negatively impact our margins by about 20 to 30 basis points, making the margin adjusted for these discrete items about 1 point above the full year 2006 gross margin. We see the year-over-year increase coming from improving costs on our OEM instrument consumables, productivity, and selling price increases. These favorable factors are somewhat offset by the revenue mix shift towards reference laboratory revenues.

Operating expenses are projected to be about 36% of revenues for the year, the same as our thinking in January. Given that operating expenses were lower than our expectation in the first quarter, this implies increased spending over our previous projection for the balance of the year. We see a ramp in our investments in R&D, sales and marketing, as we prepare for the launch of Catalyst and SnapShot Dx, and other product introductions as we expand our U.S. and international commercial capabilities, and as we integrate acquisitions into our operating system.

Our thinking about gross margin and operating expenses leads to a projected operating margin for the year of 16 to 16.5% of revenues. Discrete items associated with acquisitions are projected to reduce the operating margins by about 30 basis points, and amortization of intangibles is expected to have a 40 basis point negative impact. We expect the tax rate to be 32 to 33% of net income, and net interest expense to be about $1 million, due to the use of the credit facility that we opened in the first quarter.

All of the aforementioned factors lead us to an EPS projection for 2007 of $3.00 to $3.07. This is up from the $2.89 to $2.97 range given at the time of our fourth quarter call, and adjusted for the estimated $0.01 of dilution from the Vita-Tech acquisition. The two Canadian Laboratory acquisitions, along with Opti Medical and Institut Pourquier, are collectively estimated to have a dilutive impact to EPS of $0.11 to $0.12, with $0.05 to $0.06 related to discrete purchase accounting and integration items in 2007, and about $0.06 related to ongoing amortization of intangibles.

Earnings per share growth adjusting only for discrete items in 2006 and 2007 is projected to be 14 to 17%. Though we are not prepared at this point to give explicit guidance for 2008 and beyond, we believe the investments we are making in our base business and recent strategic acquisitions, will yield improving operating margins over the longer term.

The key drivers for this are the growth of the increasingly profitable instrument consumable sales, resulting from an expanding installed base of instruments, higher gross margins on chemistry instrument sales with the launch of Catalyst Dx, volume leverage and operating efficiencies in our worldwide reference laboratory network, improving profitability of our acquisitions and international operations, and continued efficiencies in our manufacturing operations as a result of our Lean and Six Sigma programs.

As for the balance sheet, we project DSO at approximately 40 days, inventories at about 100 to $105 million, and capital expenditures at approximately $70 million. We project free cash flow to be about 85% of net income.

And now to John.

Okay, thank you, Merilee, for the review of our financial performance. We are very pleased with our results for the first quarter. Areas of strength include most of our core companion animal lines of business. Outside of the CAG segment, our Water business had a strong Q1 against a very weak compare last year, and our production animal services business had strong double-digit organic growth. In addition, we completed several strategic acquisitions.

Also I would like to point out growth benefited by a number of unusual factors, first we had an overall weaker organic growth revenue in Q1 of 2006 of 12% in organic growth, in comparison to 14% organic growth for the full year of 2006. Water and IDEXX vet lab instruments in particular had weak 2006 Q1 compares.

Second, our growth this quarter included the favorable impact of the weak dollar, the benefit of having a global footprint, with now 38% of our revenue derived from countries other than the U.S.

Third, we had revenues contributions from our recent acquisitions. As Merilee has mentioned all of our acquisitions are going well in terms of early operating performance and integration progress, although we have a lot of work yet to complete in 2007.

Fourth, we, like others in the industry, had a bump in revenues associated with the increased level of diagnostic testing in our veterinary hospital customers, associated with pet owner concerns regarding the pet food recall. Our hearts go out to those pet owners and patients who were affected by this very unfortunate situation. We are glad that the veterinary community is there to provide a high level of healthcare, including the ability to quickly diagnose acute renal issues, and monitor patients' health over the long term.

Importantly for investors, the magnitude of the surge in diagnostic testing volumes, and associated revenues we experienced with our point of care instrument consumables and our reference laboratory business late in the quarter, is very likely to be a temporary phenomenon. Long-term growth trends in diagnostic testing both pet side where quality results can be available immediately, and when sent to the outside lab remain intact.

When you adjust our performance for these beneficial yet unusual items we are still very pleased with the Company's core performance and revenue and earnings growth. Now on to a few business updates behind that core performance. In the IDEXX vet lab instrument and consumable business, we completed a very successful quarter in global instrument revenue growth.

Part of this growth was the result of a relatively easy compare as I mentioned, and yet on any absolute basis, Q1 was an exceptional quarter for instrument unit placements, just about as strong as any Q4 we have ever had, including 2006. This is pretty amazing because Q4 is usually the standout quarter of the year. This performance was the result of great sales and marketing, and a product line that just gets better and better.

Of course, instrument placements are what drive consumable growth and profits in this razor and blade business model. As Merilee has mentioned we have seen an acceleration in the long-term consumable growth, and thus have raised our estimate accordingly.

One of the strategic elements of the suite is the IDEXX vet lab station. Station connects all the equipment, serves as the master instrument controller, and is a powerful information system, to store and print the entire suites result in a single integrated patient report. Note that station will also serve as the user interface and information system for our instruments in development, including Catalyst Dx and SnapShot Dx.

Last quarter I stated that through 2006 approximately 2,000 of our IDEXX vet lab customers had purchased the station. Thus, these customers will have already purchased the first element of the new Catalyst Dx system before its full launch early next year, providing a smooth and seamless upgrade path for our worldwide installed base of IDEXX vet lab customers.

During the last call I also estimated that the number of installed IDEXX vet lab station customers would likely grow to about 4,000 by the end of 2007. However, customer acceptance is accelerating in Q1, as we placed about 700 stations including those with laser sites. We also shipped a software upgrade to all station customers with dramatic new capabilities.

We are now estimating that our estimates for station sales in 2007 will increase to 3,500 units, including those that come with laser sites, which when added to the 2,000 previously sold, would create an installed base of 5,500 units by the end of the year. This sets us up very nicely for Catalyst Dx sales in 2008 and beyond.

In instrument development, we continue to be very pleased with the progress we are making on our next-generation chemistry and amino assay instruments, Catalyst Dx and SnapShot Dx. We are tracking on-schedule for a launch in January of 2008. Both instruments are meeting their design goals well. The design process is nearing completion and validation is beginning, while our supply chain and operations prepare for manufacturing.

In addition, our market research and customer discussions confirm a very high level of interest in the systems both in the U.S. and international markets. There is no question that these instruments will take the IDEXX vet lab to a whole new level in point of care capability, catalyzing the practice of veterinary medicine and delighting practice owners.

Today, we are also announcing yet another instrument addition to the IDEXX vet lab suite, called the IDEXX Coag Dx, this analyzer will measure coagulation parameters, and will integrate with the rest of the suite. Adding these test results to the integrated diagnostic reports and medical record in IDEXX vet lab stations. Like the other analyzers that comprise the IDEXX vet lab suite, this instrument has a proprietary consumable used during each run, and thus adds to the instrument consumable revenues. We plan on launching the IDEXX Coag Dx this fall.

We will also be distributing consumables to an existing installed base of veterinary coag analyzers that run on a stand-alone basis, and coag consumables will generate roughly 2 million in incremental annual consumable revenues starting later this year. With the IDEXX Coag Dx launch, the IDEXX vet lab suite will be further differentiated, by providing the most comprehensive and integrated in-house lab capability, including chemistry, hematology, electrolytes, endocrinology, blood gases, urinalysis, and coagulation testing, along with the ability to easily add SNAP immunoassay test results to the report and electronic medical records.

This year of 2007 is starting out with great growth in sales and earnings allowing us to accelerate investments in R&D, sales, marketing, and critical infrastructure. Our pipeline of new products and development is full for next several years, with planned product launches such as Coag Dx later in 2007, and Catalyst Dx and SnapShot Dx in early 2008. The results of this strategy should allow to us drive over the longer term, sustained low double-digit organic revenue growth, and mid-teens earnings per share growth, through innovation, solid execution, and margin expansion.

Shelly, at this point we are pleased to open up the call for questions.

Thank you. (OPERATOR INSTRUCTIONS) One moment to assemble the queue. Our first question comes from Rick Wise of Bear Stearns.

Hi, Merilee. This is actually Miroslava for Rick Wise. Congratulations on a very good quarter! Obviously we are hearing some great things about new instruments coming up, et cetera. I have a couple of questions.

First of all, you are continuing to talk about margin expansion, at the same time we kind of see you pursuing a strategy of expanding your reference laboratory presence. Can you talk us through how we should think about margin expansion given that the reference laboratories mix seems to be a little lower margin than your other revenue, and also can you also talk us through, how do the reference labs specifically mix with the vet lab, and help you drive better growth overall in the future?

Hi, Miroslava. Thank you for your questions. I will take the first one, John will take the second one. With regard to the margin expansion, I guess I just want to refer back to some of my comments at the end of my discussion. And, you know, the things, the major things that we are going to see that are going to drive margin expansion are that we are going to have an increasing portion of our IDEXX vet lab business will be consumables revenue. The consumables are at a higher margin than our instrument sales, and they continue to get more profitable over time.

In addition, with the launch of Catalyst Dx, we will be getting higher margins on our instrument sales. As you know now, with our current VetTest chemistry system, a lot of the placements of those instruments are in kind of rental situations. Also, with our worldwide reference laboratories, though they do have somewhat lower gross margins, we do see the ability, than our product business, we do see the ability to improve the overall operating margins, and we have been seeing that over time as we work on efficiencies, operating efficiencies, and also just getting volume leverage in that business.

And as well on the manufacturing side here for our products businesses we are continuing to see operational efficiencies that are going to yield improving gross margins on product business. So I think all those things together are going to lead to, even though we have mix differences in our business, are going to lead to expanding margins over time.

In relation to the second question, we do think that in-house testing with it's benefit of immediate results, and reference testing are actually quite complimentary. There is a general trend in increasing usage of diagnostic testing and the value that adds in the veterinary practice, and the health of the patient.

Our patients age seven years for every human year, and people appreciating that annual wellness testing is the kind of thing that can extend patients' lives. In-house and reference lab testing, we find just works very, very well together in a test, a treat/monitor type context. In addition, we get sales and marketing synergies around the world when we are in our sales and marketing organization with diagnostic testing, when we combined our efforts on in-house and reference lab, and that gives us some productivities and efficiencies.

Thank you. That helps. And just a little, a final follow-up. We have heard you talk about, John, we have heard you talk about 10% plus sustainable revenue growth in the future. I think that is the first time I personally heard you say double-digit revenue growth going forward. Should we take this as a little bit better outlook than we have heard before, or is it basically the same 10% plus?

Thank you for that observation. You are right. I said sustained low double-digit organic growth. That is a little bit higher than 10% plus. You heard Merilee give revised and updated guidance on some of the larger individual lines of business. So you know, we are feeling a little bit better about the longer term organic growth that is coming out of our innovation and global footprint.

Great. Appreciate the comments, and congratulations again on a very, very nice quarter! Thank you.

Thank you.

We will now move to Ryan Daniels with William Blair. Please go ahead.

Hey, guys. Good morning. Let me add my congratulations to the great quarter! I want to follow up on a question just on the kind of integration with the lab and the point of care equipment.

When we look at some of the M&A activity you have had over the last year or, so especially, using as an example Canada buying the two big reference labs does, that in some regards create a beachfront for you, to start getting lab volumes, see who the high utilization doctors or practices are, then use that to target more instrument sales to them? Is there kind of a natural synergy there on the sales side?

Ryan, thank you very much. We are pleased with the two Canadian lab acquisitions, and putting that together into a national Canadian lab network, and we are also very pleased to be able to pull together their sales and marketing efforts with our in-house, and also our information systems and digital. We have the whole complete suite of products in Canada like we have in the U.S. We really start with a customer perspective. We say what is the customer -- what does the customer want, what do they value in terms of advanced diagnostic capability.

We get to know the customer from all our, and then we provide value-added solution selling that integrates all of these products. So by understanding who the customer is, through these different lines of business, obviously we are able to be more effective in sales and marketing, but our strategy in Canada is really not unlike it is in other parts of the world, and that is really to grow the business by providing great customer service and medical innovation.

Great. That is helpful color. John, another kind of quick question, you mentioned the importance of kind of annual wellness testing in your prepared comments. Is IDEXX using the pet food recall really, as an opportunity to educate veterinarians and customers more of the need for this, and kind of using the recall maybe broader than just looking at renal failure, but to establish an entire baseline, that could really perpetuate more growth, or be a paradigm shift in the industry going forward?

The first thing we are trying to do is help veterinarians understand the implications for the pet food recall, and what impact it could have had on patients' health. That is really the immediate focus. We did have a very successful webinar earlier this week. We had over had 1,000 customers attend. That was really focused on medical issues around the pet food recall.

But I think the spirit of your question more generally is, you know, what is maybe the recall have on longer term diagnostic testing, and that is really anyone's guess. You could say that maybe that advanced appointments that would have happened later in the year, you are going to see a dip later.

You could also say that this testing, and it is has been general profile type testing, is finding other issues, and also that there is a need and a requirement, because of the unknowns, to monitor the longer term health of affected patients, and finally, I think practices, that this is just one more piece of the puzzle. Practices is seeing the value of testing for the patient's health, and understanding that pet owners, you know, are willing to pay for good healthcare when they understand it will impact the health and longevity of their beloved companion.

Sure, great. Two more quick ones, and I will hop off. You had a press release, probably two or three weeks ago, just indicating your support of the right to test cows for BSE, post the Creekstone ruling. Any more developments you have seen there, or any insights you can add on that?

Not really. We are waiting for, I guess, a June 6th timeline, when the USDA decides whether they want to appeal that ruling, and what we are just saying, that should the market in the U.S., you know, develop, we are there, and we have the second-generation advanced technology, which is the easiest to use, the shortest protocol, and best overall diagnostic for it. So we are there, if it should happen.

So wait and see. Last question. Just if I could get some more color on the investment you have made in the sales and marketing side. I know looking back over past quarters you were holding steady at about 25, 26 million. You have had a very nice ramp in that investment, kind of investing for the future there. Can you talk a little bit about where that is? Is that U.S. based direct sales? Is it more expansion international? All of the above? What the focus has been in that sales force investment?

I would say it's a continual incremental investment, but we are also really focusing on the productivity of that, and we were very pleased, as I said, we had great sales and marketing productivity in the first quarter. Our instrument placements and revenues, as Merilee mentioned, grew in excess of 30%. I have got to tell you our sales and marketing investment behind that did not grow anywhere near that. So it was very nice to see things starting to come together, in terms of execution on the sales and marketing side.

Great. Thanks for all the color. Again, great quarter!

And our last question comes from Ross Taylor with CL King. Please go ahead.

Hi. Can you all hear me?

Yes. Good morning Ross.

Most of my questions have been answered, but a couple of simple ones. First, I missed the number Merilee gave out at the beginning of the call for the dollar amount of the incremental revenues you think you received from the pet food recall?

Yes. We estimate that was about $2.5 million.

I was just going to say that is an estimate. It is hard to say what would have happened without it, but that is our best guess.

Okay. Another question relates to the coagulation instrument. Can you roughly say what the price point of that might be, relative to some of your other instruments where the price point might fall?

That is going to be an under $5,000 instrument, a little higher than our urinalysis, which is under $1,000, maybe more like a vet stat. So it is a fairly low price point.

Okay. And you mentioned you might begin selling some consumables before your instrument is actually out there on the market. Are those things that can be used with other devices that are already out there, or what would those be exactly?

Right. There is an installed base of coagulation analyzers that is out there. They are all on stand-alone boxes, if you will. And the consumable that, we are going to basically be taking the over the distribution of the consumables for that installed base of customers, and it is the same technology that takes it to the next generation of product, which will connect with the IDEXX vet lab station. That is one of the major missing components to an otherwise great technology that customers have asked for.

They haven't been able to print out results, and they haven't been able to print out an integrated patient report. As we connect this instrument to the IDEXX vet lab station it is just going to add more value to that, and also to their ability to do coagulation testing.

All right. And just two other questions. First, with the Catalyst Dx, I don't know if you can elaborate at all beyond the comments you made where you are in the design process and validation process with that.

Well, Ross, I will be demonstrating the current prototype of the instrument at our Annual Meeting in less than two weeks. So, you know, we are making good progress, and those are the Annual Meeting, or who want to call in for the presentation that I will be making, will be able to listen to or see that demonstration.

Okay.

And, Ross, one more thing on the coag. We do have a press release on our website with regard to the coag analyzer, if people have more questions on that.

Okay. And last question maybe relates to the BSE testing. Can you quantify at all how much business you have in the U.S. now for BSE, and how big that might become if the regulations do change?

First of all, there is very, very little BSE testing happening in the U.S. today, and I would put it as a tiny fraction of what happens in Europe, and all of our revenue for BSE testing at this point is international.

We do have an approved test with the USDA, but there's just, it's miniscule, the amount of testing today. What might happen I think is speculation. It would really depend on market developments, and what customers decide to do, if they have the option to do that, and we don't have anything in our guidance for it.

All right. Good. Thanks very much.

Thanks, Ross.

At this time, I would like to turn the call back over to Mr. John Ayers for closing comments.

I want to thank everybody for joining the call. I also want to thank all the employees of IDEXX who are on the call.

It was a great quarter and we are looking forward to the rest of the year, and I would say what is a pretty good future for IDEXX over the next couple of years. So again, thank you all. That is the end of the call.

That does conclude today's teleconference. Thank you for your participation. Have a lovely day! You may now disconnect.