Option Care Health Inc (OPCH) 2004 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to the MIM Corporation third quarter 2004 earnings conference call. (OPERATOR INSTRUCTIONS). As a reminder, this conference is be recorded, today, October 28, 2004. I would now like to turn the conference over to our host, Ms. Rachel Levine, Investor Relations representative. Please go ahead ma'am.

Thank you. Good morning. Thank you for joining us to discuss MIM's third quarter 2004 earnings. If you do not have a copy of our press release, please call the Anne McBride Co. at 212-983-1702, extension 207, and we will have one sent to you. Alternatively, you may obtain a copy of the release at the Investor Information section on the Company's corporate Web site at www.mimcorporation.com. A replay of today's call may be accessed by dialing in on the numbers provided in the press release or by accessing the webcast in the Investor Information section of the our website.

Before we begin, I will remind you that during this call you will hear some statements that may be considered forward-looking statements. These forward-looking statements may include statements relating to financial projections or other statements relating to the Company's plans, objectives, expectations or intentions. These matters involve risks and uncertainties, and actual results may differ materially from those projected or implied in the forward-looking statements. Factors that could cause actual results to materially differ from the forward-looking statements in this call are set forth in our most recent annual report on Form 10-K.

During today's call Mr. Richard Friedman, our Chairman and Chief Executive Officer, will comment generally on the quarter and then pass the call to Jim Lusk, our Chief Financial Officer, who will discuss the financials and operations in detail. Rich will then return for some final comments before opening the call to questions and answers. I would now like to turn the call over to Richard Friedman.

Good morning everyone. The third quarter continued to show steady growth. Total revenues increased 25 percent over the third quarter of '03. Specialty revenues increased 47 percent over that same period, and 8 percent sequentially over the second quarter of '04. Total prescriptions dispensed increased 25 percent over the third quarter of '03. And SG&A remained flat with last year and declined as a percentage of revenue to 8 percent versus 9.7 percent for the same period last year.

However, as we and others in our industry have previously discussed, we are experiencing pricing pressures, primarily in IVIG. Comparing IVIG margins from the third quarter of '03 to the third quarter of '04 we dropped approximately 25 percent. Sequentially Q3 versus Q2 of '04, we declined an additional 16 percent. This had the impact of reducing our overall margins from 10.9 percent in the second quarter to 10.4 percent in the third quarter of '04.

We did not anticipate the reimbursement on IVIG to come down quite this fast. The key to our success is to significantly increase volume and leverage our existing assets. This is precisely the reason for the merger with Chronimed, increased volume, add therapies and reduce costs.

In the third quarter we extended the geographic span of the significant specialty customer. We established the beginning of a working relationship with the greater New York Hospital Association to offer a suite of pharmaceutical services, including specialty and infusion. We expanded infusion into the mid-Atlantic states. And we have expanded infusion services to in-office physician centers. We continue to improve our relationship with manufacturers, and have a number of new initiatives underway with them to further increase revenues.

We have seen a significant growth in certain disease states, including rheumatoid arthritis and MS. The fundamentals of our industry are stronger than at any time before despite these pricing pressures. Specialty continues to expand at a rapid rate. And there is an acute need to manage health care costs for the chronically ill and genetically impaired.

Biotech pharmaceutical is approximately a $22 billion industry. There are over 370 drugs in late stage trials, targeting more than 200 disease indications, much of these are infusion. Indications for existing drugs are expanding and spending on specialty is estimated to reach 40 billion by the end of 2006. These driving forces will not change and will only amplify as time passes.

I will now turn the call to Jim to go through the details of our quarter.

I'd like to start by emphasizing our strong topline performance for the quarter. Overall revenues for the third quarter increased 25 percent to 161.5 million compared to 129.6 million in the third quarter of 2003. Third quarter specialty revenues grew 47 percent to 65.6 million compared to 44.6 million for the same period last year.

Third quarter PBM Services segment revenues, which include traditional Mail service, increased 13 percent to 95.9 million compared to 85 million for the same period last year. I'm also proud to point out that even with an overall 25 percent increase in revenues we kept our spending flat.

We reported third quarter net income of 1.7 million or 8 cents per diluted share. Revenues continued to grow at a strong rate. However, we are experiencing margin pressure, primarily IVIG as Rich discussed. Net income from the third quarter of 2003 was 1.3 million or 6 cents per diluted share. That quarter included a $1 million restructuring charge related to the loss of our TennCare PBM business.

Gross profits for the third quarter of 2004 was 16.7 million or 10.4 percent compared to 15.4 million or 11.9 percent for the same period a year ago. The decrease in gross margins reflects pricing pressures particularly in IVIG, as well as the previously announced continued ramp of one of our major exclusive specialty contracts, which included pricing concessions. Buying from expanded geographic territories under that contract is expected to compensate for these concessions in future quarters.

Selling, general and administrative expense for the third quarter of 2004 were 12.8 million compared to 12.6 million for the same period a year ago. SG&A as a percentage of revenue decreased to 8 percent during the current quarter as compared to 9.7 percent in Q3 -- 3Q '03 showing strong operating leverage during the quarter. We believe that leveraging our SG&A will help to offset the margin pressure we are experiencing.

Revenues for the first nine months of 2004 were 463.7 million compared to 453 million for the same nine months of 2003. That represents a record nine months revenue, even without TennCare and Synagis. Revenues for the same period increased 25 percent over the prior year's nine months, excluding revenue from a TennCare PBM program and the Synagis specialty program.

Specialty revenues for the first nine months of 2004 increased 27 percent to 183.7 million from 145 million compared to the same period in 2003. Nine-month specialty revenues increased 40 percent over the same period in 2003, excluding the loss of Synagis specialty sales.

PBM services revenue, which includes traditional mail service for the nine months ended September 30, 2004 were 279.9 million, and grew 17 percent in the nine months of 2004, excluding the loss of the TennCare PBM on July 1 of 2003.

Operating income for the nine-month period was 10.4 million compared to 14.3 million for the same period in 2003. The nine months of 2003 included a 1.6 million employee severance payments related to the loss of TennCare. Excluding TennCare, Synagis and the severance charge, operating income for the nine months of 2003 was 9.4 million.

Net income for the nine months was 5.8 million or 26 cents per diluted share compared to 8.2 million or 36 cents per diluted share for the prior year's period. Excluding the results of TennCare, Synagis and the severance charge, net income for the nine months of 2003 was 5.2 million, or 23 cents per diluted share.

Gross profit for the nine months of 2004 was 50.5 million or 10.9 compared to 53.3 million or 11.8 in the prior year's period period. Including the result from TennCare and Synagis, gross profit for the nine months of the prior year was 46.8 million. Selling, general and administrative expenses for the nine months of 2004 were 37.9 million compared to 37.6 million for the same period in 2003.

Turning to the balance sheet, inventory turns remained strong for the quarter at 42. Days sales outstanding decreased to 37 days at September 30, 2004 from 40 days at June 30, 2004. We generated 3.7 million in operating cash flow for the quarter. And we have reduced the outstanding balance in our credit line to 8.2 million from 10.6 million at June 30, 2004. Stockholders' equity for the nine months of 2004 increased to 114.3 million from 107.2 million at the end of 2003. Our balance sheet remains strong and we're well-positioned for the merger.

At this point I would like to briefly address guidance for the remainder of the year. We expect diluted earnings per share for 2004 to end up in the low to mid-30 cent range.

I will now hand it back to Rick for some concluding remarks and comments on the progress of the merger.

We are executing on our strategy of building national presence through developing local relationships. Our specialty revenues continued to grow at a rapid pace. To successfully compete today and in the future, we must increase our sales volume, have the best customer service, and have the lowest possible cost structure. This leads to our merger with Chronimed, which is progressing on time.

By forming one of the largest specialty pharmaceutical providers in the nation, we will have created a platform which will provide a broad range of services at both local and national levels and deliver enhanced growth. We will expand our product offering on a local basis, build relationships, improve service, and operate at lower cost. Accomplishing this will give us the national footprint to win.

Our combined management team is in place, and the integration process is underway. We have a clear strategy to capitalize on market and operational opportunities. First, we will configure complementary operations and support capabilities of the two companies to bring in more business with less operating costs.

Second, we will create a unified brand presence for BioScrip products, services and retail operations. Third, we will build on our market leading status in certain disease states. We are a top distributor of medications for the HIV population. And we're a leader on the East Coast with IVIG and oncology products. As a result, we will strengthen our position within the specialty sector through our enhanced platform.

With that we will open up the lines for questions.

(OPERATOR INSTRUCTIONS). Kevin Casey with WPJ.

You keep talking about topline growth. I'm wondering how much time you spent actually looking at profitable growth as opposed to just growing the topline?

This industry, and we have said this for a long time, the margins are such that this is more of a volume game. We have said that right from the start. There are going to be certain products that will generate higher margins. IVIG is still a product that is out there today that won't generate much higher margins than some of the ingestible products. And we have been consistent in this. We have said this looks like the generic industry and the PBM industry being combined. We have felt that way from day one, and we have had those conversations.

We believe that you have to get a lot larger faster with the volumes that are there. The volumes -- the products are all profitable, every one of them, and we will leverage the assets. What has happened though is that we have lost margin on IVIG that has impacted us on an overall basis. There is not one products that we sell that is unprofitable.

And then a question on the IVIG. That 25 percent drop, is that a drop in margin, 25 points of margins? I'm kind of confused what the drop was?

Yes, it is comparing the gross profit percentage from the third quarter of '03 to the third quarter of '04.

And excluding that, gross margins would have been 10.9 percent?

No, it was 10 -- overall that brought us down from 10.0 to 10 4. That was the reason for that drop of the overall margin.

Brooks O'Neil with Dougherty & Co.

I guess I have a couple of questions. You commented just a minute ago, Rich, that IVIG despite the substantial drop you have seen here in this most recent quarter, that you're still sporting margins that are above what you see in some other segments. So can you just give us a sense for where the margins are today, and what your outlook is going forward for that product line?

Sure. The margin actually last year was running in the low to mid 40 percent range. I'm talking about gross profit. What we have experienced is that the margins are now into the low to mid 30s. The expectation going forward, talking to our people, is that in 2005 we would see that margin decline even further, probably to the mid to the upper 20s.

And I'm assuming this is a little bit of a moving target that we really don't know how low those margins could go? I have a sense that the supply situation has improved on that product line.

Your sense is correct.

Okay.

Now the rest of our product line is doing well. We have not experienced any significant drop in any of the other therapeutic categories. The entire impact of the margin has been lined -- the entire 98 percent, 99 percent is linked to IVIG. The other part of it, as Jim mentioned earlier, was taking a contract and expanding that contract significantly at much lower margin.

Is that the contract -- when I think we had the second quarter call I had some sense that you had a contract that was new or expanded that was ramping up in the third quarter and that you expected a material positive contribution in the fourth quarter, which would enable you to get to earnings numbers that were quite a bit higher than what you are currently guiding to.

That is the same contract we're talking about that we see it ramping up. And we do expect that the volumes being made up in future quarters will more than offset what we have lost in margin on that particular account.

Okay.

But again, the IVIG, has hurt us more than anything else.

Now just jumping to the guidance that Hank and his team at Chronimed gave for the combined companies for next year, I think they at least said that they are still comfortable with 35 million of EBITDA for the combined companies. That seems to be despite some fairly significant new pricing pressures in some parts of their business, particularly a couple of state contracts, and obviously the remainder of the Aetna contract. And then you guys are seeing this IVIG pressure. Is there anything tangible that you could point to that would help us to gain confidence that that 35 million of EBITDA is in fact achievable?

Sure. When we went through the model, and Hank and I went through this again last night with both Jim and Greg, and we do feel comfortable with those numbers. When we went through our models and reported on the 1.235 million -- 1.2 billion of revenue and 35, we went ahead and looked at potential deterioration of margin across the product categories. We did take that into account. And quite frankly, we were very close to what we're doing right now. We also have in there some net synergy numbers. But as of last night when we all sat down and rereviewed those numbers, we were all very comfortable with what we ported last quarter.

Okay. That's good. Just two other quick questions. One is you know I certainly appreciate the benefits of scale, and I see that you will be one of the larger players in the business, but are there other things that you can do that your clients will view as significantly value-added and significantly differentiated such that we can put -- get past some of this tier pricing pressure that we're seeing in some of the areas they must consider commodity?

Absolutely. And you have got to look at it two ways. One overall, and we have been saying this for a long time, I anticipate that overall business in this sector will be in the 10 percent type of range. As a matter of fact, we had a question on that last quarter and we said pretty much the same thing. And I have been saying that for years.

Number two, we have a number of initiatives underway. One of the significant ones will probably end up being with the Greater New York Hospital Association, which is key to be able to get your product on an outpatient basis to those when they are first diagnosed within a hospital setting. Working with the hospitals on a discharge planning basis. If patients are in a hospital, as an example, strictly because they are on an infusion. And we could them out of the hospital earlier by moving it to one of our infusion centers, we believe that is a savings for both hospital as well as the insurance company.

So we have a number of initiatives like that underway that we believe will significantly increase revenue, but what we also believe will have a higher margin than what we're experiencing today in certain of our products. So we are looking at more profitable business in order to get the margins up there. We're looking to be in the compounding pharmacy business, which as you know has a much higher margin overall.

So we are looking at various products that are needed in the marketplace today, and they are critically needed -- compounding is needed, having infusion centers are needed. This whole change with oncology and what is going on with ASP starting next year, where the physicians may not be doing it in their own offices, but there may be ways to work with them in order for them to continue to see their patients on a regular basis. So there are plenty of opportunities out there that we're working on.

That's great. And then the last question I was just curious. I applaud the recent announcement of the closure of the Minnesota facility. Obviously I'm sorry to see my neighbors lose their jobs, but I think taking aggressive action to benefit from the merger makes all the sense in the world. Are there more -- should we expect more actions like that that are tangible and that will result in cost savings as a result of the merger?

Absolutely. Absolutely. I think that both Hank and I are absolutely committed to making the right decision to get these costs down as low as we possibly can. And that comes in all different shapes. But we are committed to lower the overall cost structure of this Company, and to be much more competitive going forward. There's a benefit. Hank comes out of the PBM industry, and so did Arthur. Before that I was in the generic industry where we went on low margin, low overhead type businesses. We understand that. And Hank and I will do whatever we can. And he is running this and he is committed to it, to get our cost structure as low as possible.

I think that's good. Thank you very much.

Anne Barlow with Southwest Securities.

Are you guys going to continue -- or will you be using Cardinal for your wholesaler going forward -- the combined company?

What we will be doing is looking at all the wholesalers, both in -- all the majors as well as regional so that we could take advantage of the new volume opportunity out there. On a combined basis I think we will be buying close to $800 million, maybe been more of product. And we will be going out with RFPs. There are some contracts in place. And we will do what we can in order to try to lower overall. We also believe we may have opportunity of going more direct to the manufacturers.

On some products.

And we will take advantage of that. Brooks made one comment which I would like to correct. Brooks, you talked about the entire Minnesota facility in Minnetonka closing down. That is not the case. What is in fact going to move is the mail-order and the customer service side right now. So I do want everybody in Minnesota to panic. But that has been announced that it is the mail order and the customer service side is moving into the Columbus facility.

So you've got RFPs out right now on the wholesaling part and (multiple speakers).

Well, we really can't do things combined yet until in fact we do come together, but those discussions are taking place.

And on the IVIG margins, was that more where you're buying -- your pressure is more where you're buying the drug or is it the reinforcement pressure from the payor or both?

I think is much more from the payor as opposed to where we are buying it. We just -- we're currently working Innovatix (ph) to help us secure product at better prices, and they are a GPO. We still go direct. We are looking for product -- and then product is out there. But we were really hammered on much more of the reimbursement side.

And, Jim, looking at your estimates -- your EPS estimate for the year, it looks like (indiscernible) is it safe to assume that it is a down quarter in the fourth quarter from where we are here? And again is it primarily due to where your margins are going to fall?

I think given the range of low to mid 30s we could be flat to a little bit better or -- you're in that range there, so it is the range right now.

Okay. And mainly address where the gross margin and expenses are, is that the main issue here?

Yes, it is the continuing discussion we have had on IVIG.

Deborah Deoffis (ph) with Crystal Equity Research.

Just to continue on with the discussion about the merger with Chronimed, do you have a time line? You have proxy issues to work through. Is there a time line or a date that you now believe would be close to when you close that?

We are still looking. And Hank said that earlier upon the call. Everything is moving forward. As you know the Hart-Scott-Rodino Act passed by it, and we are working on the S4. We have received some comments on the S4, which we are finishing off and getting back in shortly. And we believe that we should be able to close this transaction in December.

Arnold Ursaner from TTS Securities.

A couple of questions. First on your business. Can you give us in your view what percent of your revenues today are accounted for by IVIG?

Overall in the -- let's look at the total business. We will give it to. It probably represents 8 percent.

Of your total business?

Is that about right, Jim?

Yes, that's about right.

Again I guess I'm a little unclear --?

And it is shrinking. As we said in previous years, the more we do on the injectable side the less the impact will be overall on that side.

I'm surprised an 8 percent revenue item, even with a margin hit, is having that big an impact on your overall growth?

Oh absolutely. If you think about -- you know if you just take that and you go down approximately from 44 to 33 let's say, 11 points on that, that is a pretty big hit. That is closer to 3 point something cents of earnings per share.

Right. Rich, at your annual meeting you had talked about the card opportunity, and yet I have heard much about it since. Can you update us on what is happening there?

Sure. The card is going well. We have recently signed up --. What is the number of lines?

It was about 55.

Fifty-five new ones. The card continues to grow. But this point it is just not a significant revenue generator for us to say that it is making a dent in the earnings.

And unfortunately, I have to ask a hard questions with your stock having reverted back to where we first started with you price-wise a couple of years ago. Two parts to the question. In your SG&A line given that the fundamental outlook is much worse than you had thought I assume, can you comment on management bonuses and how SG&A accruals might be going at this point?

Sure. There are no management bonuses. That is clear. And there weren't any last year either. We will not take management bonuses until this Company and the combined Company meets its targets. And clearly we have not met our target for this year.

And as part of the S4 merger proxy it is clear in the language that you had certainly been approached by some other companies. And I know you have from day one have said you're totally focused on shareholder value. You indicated that three of the proposals were prices in the 8's up to as high as 12. With your stock trading at 5 right now it is a little hard -- 5 and a fraction -- it is hard to see how turning down or not pursuing those bids is enhancing shareholder value. Can you comment?

Sure. On a sale we did not believe, and I still don't believe, that that was in the best interest long-term of our shareholders. I think that what we're creating in this combined basis is going to be much stronger. I believe that the opportunity of putting these companies together, building these local distribution platforms, adding therapies to where we are, reducing our costs, getting more into the infusion space will create tremendous upside potential for all shareholders. And I believe strongly in that, and so did our Board of Directors, and so did our investment counselors.

So we're very comfortable with the decision. And I look forward -- and Hank and I were talking about this the other day. I can't wait for this to close. I can't wait to get on by having these 28 locations. I can't wait to start adding therapies. I think we're going to create something that is very special. And I think we are going to be -- I hope and I strongly believe that we're going to perform very well.

Mike Murray (ph) with Murray Asset Management.

A couple of questions. For the combined company what do you think CapEx is going to look like for next year on a going forward basis?

Jim?

Each of the companies only have a million or two a year, so it's only a couple of million. We may have a little bit more because we have to build out some facilities as we move more people in, but it is no more than a couple of million.

One of the things we're going to do is use some of the pharmacy equipment that is up in Minnetonka. Move that down into the Columbus facility. But we have the capacity in Columbus to take in all that business with very little expenditure.

And do you have a sense yet of the closing costs? Once this merger is done you mentioned some one time fees with regard to that. Do you have a sense of what those might be in the fourth quarter?

No, it is probably going to be after that. The way it works is that we have the ability to both capitalize these costs where Chronimed does not have the ability. And that is what Hank and Greg talked about this morning. Going forward the onetime costs that we are referring to are like severance costs and relocation costs related primarily to employees that will take place next year.

So as we get to the synergies, we're going to have one time costs associated with that and that will flow through next year. The first full year of having the full benefit of synergies will be '06. So when we talked about the 35 million, we said there will be some costs associated with that. But in '06 you'll see the first full year of all the synergies in there.

Okay. And when you say synergies is that mostly the cost saves you're talking about or is that rolling out the new products and (multiple speakers).

No, we have zero put in there for new products opportunities and cross-selling opportunities.

And last question. The amortization line you have in your income statement, it is going to be about $3 million this year. What is that for, and do you need to replace that amount at some sense, or is that truly a non-cash item?

It's truly a non-cash item. And as we go through year end and do our final goodwill calculations, the difference between the assets ultimately and what the implied stock transfer is, that will translate to goodwill and intangibles. And intangibles will amortize over time, but it does is all non-cash.

The goodwill you don't have to amortize anymore. (multiple speakers).

Right, it is just the intangible piece. And not all intangibles are amortized either but it is the amortization of intangibles.

What is it for for you, customer lists and things like that?

Yes, it is customer lists. It is names. It is contracts, things like that -- employee contracts, things like that. Certain time value.

But do you foresee a period five years from now where you would need to actually spend that money to replace those customer lists or employee --?

No.

No, it is an accounting convention.

(OPERATOR INSTRUCTIONS). John Hayes with World Bank of Canada.

I have a question on the IVIG. It is 8 percent of revenues did you say?

Yes.

What percent of profits is that? Did we make any money on that?

Absolutely. It is still on the 30 plus range on a gross profit basis. We have never ported (ph) below that on an individual product basis. But it is a very profitable product.

But that product is going down, so just from a simple minded point of view it doesn't seem like we make any money from the rest of the business, the other 92 percent?

That is not true. What you have is -- you have a lot of corporate and SG&A expenses that go down below. But when you look on your gross profit line and then take your other costs associated with that, every one of our products, every one of our businesses are contributors.

And again that goes back to what we were talking about. The gross profit overall, when you look at specialty, specialty is much higher than we have on the PDL (ph) side. The specialty margins continue to contribute. They're going to contribute, but this overall business on the specialty side will probably come down to the 10 percent range overall over a longer period time.

And again this does back to this is a volume type of business. We're not manufacturers. We are in the service business. The service business historically gets squeezed on the reimbursement side. We understand that, which is why you need to get bigger, faster which is why you need to be closer to your customer and provide additional services and products, which is exactly what we are doing. And as we have the ability to better leverage our assets, we kept SG&A absolutely constant with a 25 percent growth overall. And as we continue to do that and add more and more volume, more and more will drop to the bottom line.

It seems to be a two-edged sword. I think you've done a great job keeping SG&A as you have kept it. But that is something that is finite it seems to me. I don't know how you can do much better than you have been doing.

Actually when we come together we are going to be doing better because we're actually taking cost out of the SG&A side.

Do you anticipate getting bigger by more acquisitions after you close, after BioScript becomes a --?

Yes, I think that I'm committed -- when Hank and I looked at the division of responsibilities, my responsibility will be strategic and M&A, working with Brian Reagan. And what we will be doing is looking for continued opportunities in addition to our organic growth. The answer is yes. We want to get bigger.

I am in a position where I happen to own several hundred thousand shares as opposed to -- I mean in addition to having clients who own this stock. And I'm trying to -- I mean we are at a 52 week low. I am trying to think -- it seems like you're doing as well as you can do, yet here we are. And it seems -- basically it seems to be -- what you're saying it is out of our control in terms of the reimbursement that we get.

The reimbursement there is really nothing we can do about that. That is absolutely true. The only thing that we can do is continue to go ahead and add revenues, and I think we're doing good job of that, of looking for opportunities, and I think we have done an incredible job of coming together with Chronimed on that, continuing to leverage assets. No different than a generic pharmaceutical business when you're adding other products in there. And that is what we're going to continue to do until -- there are going to be changes in health care down the road where you going to be able to increase certain margins. And we believe that will be the case. That may be the case with infusion centers, and we are doing that, which may generate some higher margins. But yes, this is going to be a volume driven type of game.

Has there been any guidance given for next year, or is a just out one quarter?

No, the guidance we gave on a combined basis is the 1.2 billion at $35 million of EBITDA.

Does it make any difference to you -- I know this might be a loaded question -- who wins the election? Does it make -- is one administration do you think more favorable than the other in in terms of how it all comes down?

No.

Okay. Thank you.

That's safe.

It does appear there are no further questions at this time. Please continue.

We thank you all for joining us today. There is going to be a replay of the call which will be available from 2:30 through November 4. And you can find that the press release. Again, thank you very much.

Ladies and gentlemen, this conference will be available for replay after 1:30 PM today through midnight November 4, 2004. You may access the AT&T Teleconference Replay System at anytime by dialing 1-800-475-6701, for international participants, 320-365-3844, with an access code of 751542. (OPERATOR INSTRUCTIONS).

That does conclude our conference for today. Thank you for your participation, and for using AT&T Executive Teleconference. You may now disconnect.