Lannett Company Inc (LCI) 2009 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to the Lannett Company Incorporated third quarter fiscal 2009 financial results conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions) Please note that this conference is being recorded. I will now turn the call over to Mr. Evan Pondel. Mr. Pondel, you may begin.

Thank you, very much. Good afternoon, everyone, and thank you for joining us today to discuss Lannett Company's fiscal 2009 third quarter financial results. On the call today are Arthur Bedrosian, President and CEO, and Keith Ruck, Interim Chief Financial Officer. First, some housekeeping items before we start. Please be advised that this conference call is being broadcast live on the internet at www.Lannett. com. A playback of this call will be available for three months and may be accessed on the internet at Lannett's website. Before we begin I would like to make the cautionary statement and remind everyone that all of the information discussed on the call today is covered under the Safe Harbor Provisions of the Litigation Reform Act. The Company's discussions will include forward-looking information reflecting managements current forecast of certain aspects of the Company's future and our actual results could differ materially from those stated or implied. With that said, let me now turn the call over to to Arthur Bedrosian. Arthur?

Thank you, Evan and good afternoon everyone. I'll begin with a brief overview of the quarter and then turn the call over to Keith to provide a more detailed description of the financial results. I will make some concluding remarks at the end of the call.

As the oldest generic pharmaceutical company in the United States, we have a long history of manufacturing, marketing and distributing a variety of prescription medication in tablet, liquid, topical and capsule forms. Our experience bodes particularly well in this environment when many of our customers appreciate the fact that our deep roots translate to high quality standards.

Our third quarter results are testament to Lannett's commitment, drive and focus, with strong sales of several key products, as well as our growth of our base business. For example, looking at our top-line growth, a significant percentage of sales came Levothyroxine indicated for the treatment of hypothyroidism and pituitary TSH suppression. I would also like to note that Lannett has maintained an uninterrupted and safe supply of Digoxin tablets to the United States market.

Looking beyond the third quarter, we were pleased with the FDA's decision last month to allow companies, including Lannett, to continue to market morphine products, an important health care need for patients suffering with pain. Even though these products constitute a relatively small percentage of our total revenues, product safety is our number one priority, no matter what product we are manufacturing, distributing or selling. With that, I would like to turn the call over to Keith Ruck. Keith?

Thank you, Arthur and good afternoon, everyone. For the third quarter of fiscal 2009, net sales grew 73% to $28.8 million, from $16.6 million in the last year's third quarter. Net income was $1.3 million or $0.05 per diluted share, versus a net loss of $1.3 million or $0.05 per share in last year's third quarter. Gross profit increased to $11.6 million, or 40% of net sales, compared with $3.9 million or 24% of net sales for the prior year third quarter. Research and development expenses were $2 million, compared with $1.5 million in the same quarter of fiscal 2008.

Selling, general and administrative expenses were $7.5 million, compared with $4.2 million in last year's third quarter. The increase in SG&A was largely due to legal expenses associated with litigation, involving a patent challenge, and to a lesser extent severance costs related to the departure of an executive. With that brief financial overview, I'd now like to turn the call back over to Arthur. Arthur?

Thank you, Keith. This is an exciting time for Lannett and I'd like to thank our management team and our employees for doing an excellent job in building our robust product line and helping our Company grow. In particular, I want to acknowledge the excellent work of our quality assurance team. These professionals go above and beyond in making sure that we manufacture high quality products. Their attention to detail has allowed Lannett to capitalize on certain market opportunities as some in our industry have experienced difficulties in CGMP, that means current good manufacturing practice compliance.

I'd like to briefly discuss the status of our search for permanent a CFO. We are in the process of evaluating a number of highly qualified individuals, including Keith Ruck, our interim CFO. We currently expect to conclude the search and name a permanent CFO by the end of June. We have accomplished a lot in the first five months of our fiscal 2009 calendar and we expect our future performance to benefit from increased sales of our existing product line, as well as our pain management products due to the current market shortage. In addition, we have resolved all patent litigation and as a result expect to see lower SG&A expenses beginning in the current fourth quarter. With the time available, we would now like to address any questions you may have. Operator?

Thank you, we will now conduct the question-and-answer session. (Operator Instructions) Our first question comes from Scott Henry from Roth Capital. Please go ahead.

Thank you and congratulations on a good quarter, guys. I guess just for starters, the current disk location in the pain market with regards to supply of Opioids, based on your experience, Arthur, how long do you think this could this go on and what kind of benefit could Lannett see from that?

Well remember there's are quite a number of issues that come about with pain management. You have the quota issues where the government gives you the quota to allow you to buy certain raw material, and sometimes you're unable to get the quotas in time so that you don't have an uninterrupted supply of material.

And in our particular situation, we did experience a competitor recalling a number of their pain management products, and as a result they withdrew their product from the market, created a vacuum and other companies had to quickly gear up to try to resolve that vacuum by putting out their product supply. If you had enough raw material you're able to get the quotas in time and you're able to do that quickly.

We were a little more nimble than some and we anticipated some of these problems cropping up, so that we were in a position to get additional quota, which we did obtain, we also doubled our production and our subsidiary, in February, and then again in March doubled it again. So that even though we're back-ordering today, back orders are minimal and every week we're getting deliveries and we're shipping.

The shortage I believe will probably last for maybe just a few more months, let's say another one or two quarters, and at that time I believe you'll see less hoarding of the product, because part of the shortage really occurs when the customers get nervous about having supply and they begin to over order and begin to hold on to the material that they have. And as a result it really kind of makes things worse. We've tried to assure the public by working very closely with the FDA, that we'll take care of any shortage, we've given the FDA details of our production schedule so they, in turn, can notify the people that are calling the FDA, and we've also given the FDA our numbers and the customers that are buying our products.

So we believe we'll probably benefit from this for the next couple of quarters in terms of the increase, but then you'll see a leveling off, and I believe we'll maintain and keep most of those customers. But the sudden desire to place a rather large order to alleviate the sudden shortage that the recall from our competitor created, that will probably see tapering off in the next quarter, and then we'll get down to a normal, routine shipment of this product. So I think you'll have a long term benefit to Lannett and to our subsidiary.

Okay. Thank you. And shifting over to one other area where competitor weaknesses have played to your benefit, the prenatal vitamin category, if I look at OB Natal One, which is very similar to PrimaCare, on an absolute basis, it looks like prescriptions have tripled since KV's problems. But at the same time the market has been cut in half. Do you think -- are there any initiatives you can do to go after some of the people that are just getting away from the PrimaCare, or OB Natal One franchises, or are you just happy to take the gains that you've had already?

No, we've actually looked to do a couple of things. We're trying -- the reason we put the trademark on our product was that so that we could continue to use that trademark for other prenatal vitamins. So that the OB Natal mark, which is the one that is actually registered and the OB Natal One marks will be used in various ways for other products. So you might have OB Natal Care and other variations of that name.

We are planning to do some direct mailings to physicians to let them know that the product is available. But we're not a brand company and our goal is really just to alleviate the shortage in the marketplace for the PrimaCare ONE, which did have a large following one as we know, it was the largest prenatal vitamin in the country. And believe it or not some doctors are actually writing prescriptions for OB Natal One, which we find surprising because we haven't directed any mailings to any physicians. But we are looking into that.

The same thing with applies with the Digoxin market, but we haven't mentioned , but the same issue occurred there, sudden competitors leaving the market and leaving us with an opportunity. You know while that sounds like we just got lucky, you also have to be nimble enough to be able to supply the market, gear up your production, get raw material in and schedule those products because everything has an expiration date so it is not sitting around on your shelf. And I believe that one of our strengths here at Lannett has been that ability to react quickly, and we do it for two reasons, certainly the profit motive is there, but we also take our job seriously that our jobs are to supply products to the public, who are suffering from illnesses and need those products to get well in some cases, or in the case of prenatal vitamins to remain healthy during the term of the

Okay. Well, thank you very much for taking the questions.

You're welcome.

Our next question comes from George Gaspar from Robert Baird, please go ahead.

Thank you. I apologize if I didn't get on the call right at the beginning, so if I am asking something that was discussed I apologize, but I'm interested in knowing. One of the things I've been talking about and Keith on your cost structure, what do you expect to be able to crunch on this SG&A for the current quarter from-- if you were to take a fresh look at your legal and severance cost elimination, how do you see that G&A coming down from the $7.5 million, which was up from, what, $4.2 million or whatever?

Yes. As you alluded to, we had about $2.5 million in the quarter related to the KV litigation.

Okay.

And we had about $450,000 related to the severance issue. If you take those two out, we consider what is left a baseline, a little on the high side, but a baseline of what the Company would incur going forward.

All right. So basically, I mean, it could look like a growth of $0.10 on a -- on a gross basis, operating basis--

That's on a gross basis, yes. That is pretax.

Yes , pretax, right, right. Okay. And then in the quarter, what did Cody cost in terms of a loss for the

About a million dollars.

It's still a million?

It is for the third quarter, yes.

Okay. And what's your thought on the current quarter and when we -- when can we see this at break-even, at least?

Just to put a little bit of highlight on the third quarter for Cody, although they still incurred a million dollars of a loss for the quarter, they have significantly ramped up their production, so they are generating a better gross profit right now, yet they are incurring some of the costs related to quickly ramping up. They're hiring people and training them for six to seven weeks and those costs, of course, go to the bottom line. So I'm actually encouraged, from what I saw in the March month from Cody, even though they still lost about a third of that million. It was some gross profit generated, offset by some of the ramp-up cost that we should see become product costs here in the fourth quarter.

Okay. And then next on your gross sales, in the $28.8 million, if I recall, was indicated, that's pretty close to the previous quarter, if I don't have anything in front of me right now here to know that for sure. But my question is directed at looking at the current quarter and forward, are we looking at the potential for Lannett to be able to generate $28 million to $30 million a quarter here going forward at least?

Well, to go back to the numbers, yes. The December quarter was $29.2 million. And the March quarter was $28.8 million. So it was very close. The December quarter included the launch of the prenatal vitamin. Whereas, the March quarter just had the recurring sales up until the KV litigation settlement. But you also had some increased sales on some on some in Digoxin, but some other drugs where KV was coming out of the market and we were able to supply some of the drugs. So going forward, if you're asking can we sustain that for the fourth quarter, I can definitely say yes, and we're expecting to do better than that.

Okay. All right. I'll pass back into queue.

Our next question comes from Greg Hillman from First Wilshire Securities Management, please go ahead.

Good morning, gentlemen, or good afternoon. Arthur, could you review Levothyroxine Sodium Tablets a little bit what your outlook is for the remaining of the year, in particular, if the FDA will, try, to narrow the band later in the year, and just kind of give me -- would you call that the biggest wild card for the entire Company for this year or next year so far?

Yes, absolutely. First of all, as some of you may or may not know, back in October of 2007, the FDA accepted a recommendation from an advisory committee to tighten the specifications for the label claim for the Levothyroxine Sodiums from 90% to 110% of label claim to 95% to 105% of label claim. That goes into effect this October. We know that ourselves and one of our competitors, Mylan, I don't mind mentioning him by name, has the ability to match those specifications. We're not confident that the two brands [Synthroid] and [Levolivoxil], or [Levothroid] will be able to match that. Based on all the information we have available to us, if they're unable to match that they have choices. They could ask for the FDA to de delay the implementation. We don't think that's going to be acceptable to the FDA because of the climate at the agency currently is one towards enforcement. So we believe if it should turn out that it is Mylan and our company, Lannett, that have the product that meets the new specs, then it would be a windfall of moving the sale of the product to us.

However, we're trying to be optimistic about that, and at same time realistic. The market itself for the Levothroxine generic has been growing as well. So the brand market has been shrinking so that today we're at 55% for the generic versus the previous,let's say, six months ago where the brand was 65% to the generics 45% -- 35%, excuse me. So there has been an increase in the generic market movement where we're using more generics than brands. So as the brand companies decline and if for some reason the decline is accelerated in October, because they're unable to meet the specifications, then, yes, the windfall would befall Lannett and Mylan and capturing a greater portion of that market and it is a very, very large volume product.

So we're preparing ourselves for it. We're certainly talking to our customers about making sure their buying product from us, so that if there is a shortage they'll make sure they get product from us, because they're already customers, versus somebody who hasn't bought from me comes to me in October. We're partners with our Jerome Stevens from (inaudible) colleagues and they're gearing up to be prepared for this movement as well. So we believe we can take on the additional volume if it should materialize and capitalize on it, as well. But in the meantime, we've been experiencing rather large growth in that item, as well, every quarter. So we're getting the benefit either people are moving to us in anticipation of October, or the product is capturing more and more of the generic marketplace away from the brand, brands are declining.

And, Arthur, if I am correct the market size for both brand and generic is $700 million per year?

That's correct.

And is the generic market split equally between you and Mylan, or are there other players?

No it's generally Mylan and Lannett where Mylan has about 73% of the market, we have about 27%. There is really no other generic company out there. There's a company that makes the product for Forest Labs, Levothroid brand, there is a generic company that manufactures it for them, but they only sell it for the veterinary field and Forest sells the human label product.

Okay. And Arthur, just one other thing about the prenatal vitamins, do you expect the vitamins to trail off since there is no detail support for it from KV?

Yes absolutely. The market, we've captured, I believe, 79% of the market, but then the market dropped 40%, so without the detailed sales force, without the customary sampling that goes on, where the OB-GYN's are giving out a physician's sample to the patient, along with a prescription, you are going to certainly see a decline in that product. There is a certain following for the OB Natal name, for example, and there has been enough substitution that we'll continue to see the product being used in place of PrimaCare ONE.

I don't anticipate PrimaCare ONE coming back on the market quickly, but nevertheless the market is -- is deteriorating because they're not there supporting it and there has been a another few prenatal companies -- prenatal vitamins marketed by the companies, that offer a similar formulation, where they have the Omega 3 fatty acids in the formula. So I see some of those markets gaining in size. And we're looking at those markets from a generic point of view and we do plan to launch more products in the prenatal area.

Do you have Omega 3 fatty acids in your product?

Yes, we do.

Okay. Thanks very much.

You're welcome .

Our next question comes from Morton Goldman of Goldman Family Limited Partners, please go ahead.

Thank you, Arthur, for taking my call and, above all, thank you and your staff for the wonderful job you've done which obviously as an investor we share in.

Thank you.

I have a question, in particular, do you either produce or plan to produce any over the counter products?

No, we do not. We have a couple of products in our product line that are sold that way. For example, we were asked to make salt tablets because there was a demand for it and nobody was producing the salt tablets. One of them is used to make saline solution and the other one is taken orally. Of course both would be non-prescription products. Aside from those two products we generally do not manufacture nor plan to manufacture over the counter products.

I know I am one of those large-growing number, especially of old folks who continue to take supplements in substantial volume in addition to our prescription medications. And it comes to a point you got to take so many pills you just can't believe it. So last -- about a couple of weeks ago I happened to have gone into Costco's drug department and they had a liquid CoQ10 and both my sons being doctors have made it clear to me that CoQ10 is something very important and that I should be taking it. When I saw it in liquid form, my eyes bugged out and I thought this is fabulous, that's a pill or two less than I have to take everyday. And so I did buy it. I was wondering if there isn't a place for folks like you. And, incidentally, this bottle of liquid, was $30 in Costco, so in other words, we're not talking about $1.98 stuff. And I'm just throwing it out because as a former business executive myself, I always look for opportunities, and in a manner of speaking I'm a very junior partner of yours, so I thought I would throw it at you.

Well your physician sons are correct about the 10. In particular, anybody who is taking statins and now they are recommending everybody take statins it deprives the body of CoQ10. It robs the body of that element, so you need to replace it. So most physicians say if you take a statin, to start taking CoQ10 which is not an inexpensive nutritional supplement and they recommend you take 50 milligrams which is even more costly. It is not that we wouldn't look at products like that, we're certainly an opportunistic Company. I wouldn't say we wouldn't do it. At times we've taken a look at certain opportunities in the marketplace and decided whether we should go after them or not.

You know, you almost remind me of that -- that show with -- I can't remember the name of the actress now. The veggie matic, vege-matic where they had a particular vitamin concentration in liquid form where everything was in there. What is the name? Can't think of the name now. She was married to that Cuban guy. I can't believe I can't remember her name. Lucy.

I love Lucy. In any case, when I saw it was a relatively high-ticket product, I thought this sort of thing could probably work very well to leverage the production, and so on and so forth. So I thought I would throw it out, what the heck.

There is a company that is promoting the Omega 3 soft gel product, the Omega 3 fatty acids and I believe the original trade name was Omacor and now it is lavaza.

And they were doing I was told something like $600 million a year. That would be a nice thing to get a piece of that action, wouldn't it?

Yes. I certainly would consider that. We probably think there is a market for a drug company to manufacture a nutritional supplement using the same GMP compliance that we have here. So it is not something that we don't look at occasionally and I certainly will take this suggestion under advisement.

Well you're very welcome and I will tell you one of those two doctors sons is in Lancaster, Pennsylvania, some day when I am visiting him, I am going to make a side trip and go into your facility and say hi, Arthur. You have a great day.

You, too, thank you.

Our next question comes from George Gaspar from Robert Baird. Please go ahead.

Thank you. Arthur, Keith, and you may have said this earlier, in terms of this Digoxin market as it is set up now, and the removal of one or two producers on the generic side, can you indicate what the generic market is in terms of quarterly sales of the total Digoxin market as you see it and where does Lannett stand now versus, let's say three months ago and six months ago on a percentage basis.

On a percentage basis I can answer that a little bit easier. For example, we had approximately 14% originally of the market and the Digitek brand that was manufactured for Mylan (inaudible) had 61% of the market, as an example. And when they first lost the market and went out of business on that product, Digitek no longer marketed that product. We then captured that 61% so we added it to the 14% we have and that brought us up to 75%. That's been holding steady for a year now. And then recently a competitive of ours [CARICO] had a significant recall on the Digoxin for the double compressed tablet, is what we call it, it's a double thick tablet, and as a result they had 17% of the market that is starting to come our way. We certainly captured some of the business already but this fourth quarter will probably see more of it because it just happened to them late March.

So from those two scenario s we'll capture probably another 10% to bring us up to 85% and then in that range, and we have one other competitor that seems to be able to fill the other 15%, and as soon as they gear up maybe they'll take a couple of percentages from us. I would say we'll probably stabilize at around 80% for the next six months. And then I think [CARICO] will come back in the market and we hear rumblings about other applications at the agency. So we never expect anything really long-term from any particular drug, because there is always a lot of competition in our business, and the minute someone sees an opportunity, they file for those products.

So on the down side we see that decline coming in about six months so we're probably approaching this peak for this fourth quarter. So July, let's say, we'll peak in Digoxin in at around 85% and then it would start to dissipate down to maybe 80% in the fall and then depending on when [CARICO] comes back it will either stay at 80% or possibly drop back down a little bit more. But it's -- it's more profitable because as part of the process we were raising our prices, our raw material costs did go up, of course, so there's been increases that will somewhat offset some of those losses in terms of market share.

But we're still now looked upon as the premier supplier for that product, and a lot of people, because they know this is a very serious drug, don't necessarily switch that quickly. So we believe we'll probably hold on to the market we've captured at this point.

Okay. And one thing on accounting procedure with the prenatal, originally there was a large sales volume recorded and then a liability, if I'm saying this right, a liability against it which gradually has come off with delivery. Is that pretty much out of the picture now, or is there still some lagging accounting that has to happen on the initial prenatal sales volume that was placed?

I think what you're referring to is the launch of what we call the multi vitamin.

Right.

Back in June of '08.

Right.

And we at that time reserved the whole $10.5 million that was initially shipped. Where we stand at the end of March is we still have about a million dollars on our balance sheet on the liability side as a reserve. Most of the product, over 80%, probably over 85% of the product, was returned to us. But we're still looking for another 15% or so. That $1 million is going to reside on our balance sheet until either we get more of the product back, which could occur, at around the expiration date, when pharmacies wake up and see that they still have it on the shelves, or we can confirm through a couple of different avenues that it was actually sold through to end customers so that at that time we can actually recognize it as revenue.

Right. Okay. And then trying to get inside of the thought process on the sales of being in the $28 million, $29 million-- Arthur expressed a thought process that maybe it could even be higher for the quarter coming, I assume that there's going to be less prenatal in the quarter and an increase in Digoxin, basically, or is there something else that can, say, fill in the void of declining and still keep you at $28 million, $30 million rate or better?

Both of us will answer that. But real quick the [CARICO] withdrawal was not announced until March 30th. So most of the -- or all of the Digoxin impact with their removal from the market will be in our fourth quarter. And there was -- you got to remember it was a class 1 recall by them, so it went down to the consumer level. So we were one of a couple companies that were able to feed that product back into the marketplace, so that occurred in the April to May timeframe.

Okay.

Yes, we are seeing some tail-off on the OB Natal One, but we had settled into a, I'll say, a recurring sales level in the third quarter. We will probably be a little lower in the fourth, but not by much.

Okay. All right.

And you also have to a very small degree morphine sulfate, which is also with KV and some others coming out of the market, which will also impact us in the fourth quarter favorably.

Okay. And looking forward how comfortable are you in thinking in terms of Cody, can this be a break-even moving into your new year past the quarter that you're now in? How do you feel about getting that to at least break even going into the new year?

We're hoping that we see them break even in our fourth quarter. We're half-way through it as we sit here today, and it's still looking like a good possibility.

Okay. So if -- if you look at cost of the previous quarter, and the reduced costs from severance legal, it sounds like you have the makings of a record quarter in the fourth quarter?

That's your statement, but we're all hoping for continued improved results, yes.

Okay. All right. Thank you .

Thank you.

Our next question comes from Kevin McDevitt from UBS, please go ahead.

Hi, Arthur, and Keith, thank you. I--with Mr. Farber's concentrated ownership position, and having the ability -- and pursuing institutions, I understand that that's hindered from some institutions from taking positions because of the available float. Is there anything that you thought about doing to alleviate that problem?

Yes, we have, and it's something I've been discussing with the board. We've discussed the possibility of putting additional shares on the market to deal with the liquidity, and I don't know whether or not any of those additional shares will include the Farber shares, or not. That is a possibility. But at the moment they are very gung-ho on keeping their ownership interest in Lannett and want to see us execute our plan. So our plan -- at least my plan -- does call for dealing with liquidity and a number of the board members have agreed that is an issue we need to deal with.

We've gotten some advice from professionals on regarding how we can deal with that liquidity problem. So to answer the question I can't give you something concrete today, I'm fairly sure within the next couple of months, you'll find we made some decisions with regards to that. I realize that a lot of people want to invest with our Company but raise the issue I'm unable to buy a large block of stock and sell a large block of stock and if we don't adjust our problem then we'll never be able to deal with institutions. So we are going to deal with that. The board is very well aware of it and I do think we'll have that solved shortly.

Okay. Thanks. Is there -- is there any thoughts about moving to a different exchange, as well?

Yes, that question has come up. We haven't actually made a decision to move at this point. We have been solicited by NASDAQ to join the NASDAQ exchange. You might say we were re-solicited by AMEX to stay were the New York Stock Exchange, AMEX Exchange We don't see a difference or differs from the NASDAQ over AMEX. The only complaints we have with regard to the exchanges, neither one of them is going to solve those problems. So we've been really talking to some people like yourselves to get a consensus from the institutional side or the hedge funds and investors to see what they think, is there a benefit? And so far the information we've gotten back, is no one really said it is going to make a difference of whether or not they buy our stock what exchange we're on. So we're still undecided with regards to that issue. Brian actually was the driver of that, so maybe that maybe that kind of fell on the wayside, but I certainly will take it up and look at it more closely myself.

Okay. Congratulations, great quarter.

Okay . Thank you very

Our next question comes from Greg Hillman from First Wilshire Securities Management, please go ahead.

Yes, Keith, follow-up on a comment you made earlier about Cody being break-even in Q4. Did you mean it will be break-even by the very end of the quarter on a run rate basis or break-even for the entire quarter?

Break even for the entire quarter.

Okay. And then, Arthur, a follow-up on something you said about the $700 million market for Levothyroxin. That is the retail market, right, not the wholesale market that you sell into?

That is correct.

So the size of your wholesale market would be like 25% of that or something like that?

That depends, brand side would be 20% less, on generic side the distance is much greater. But I would say generally if you took 25% it would be close to the mark.

25% of that figure?

Of $700 million you would be down to the selling prices for Lannett, for example.

Okay. Okay. Got it. Thank you.

You're welcome.

(Operator Instructions) Standing by for questions. We have no further questions at this time.

Thank you all for joining us today. This is an exciting time for our company, and we appreciate your continued support and interest. If anyone has any further question s please do not hesitate to contact the Investor Relations team at Lannett, of course that is Pondel Wilkinson. in California, that concludes our call today. And we thank you for your attention.

Thank you, ladies and gentlemen, this concludes today's conference. Thank you for participating. You may all disconnect.