Q1 2024 Simulations Plus Inc Earnings Call

Presentation

Operator

Greetings and welcome to the Simulations Plus first-quarter fiscal 2024 financial results conference call. (Operator Instructions)
As a reminder, this conference is being recorded.
It is now my pleasure to introduce Tamara Gonzalez from Financial Profiles. Thank you, Ms. Gonzalez. You may begin.

Welcome to the Simulations Plus first-quarter fiscal 2024 financial results conference call. With me today are Shawn O'Connor, Chief Executive Officer; and Will Frederick, Chief Financial Officer and Chief Operating Officer of Simulations Plus.
Please note that we updated our quarterly earnings presentation, which will serve as a supplement to today's prepared remarks. You can access the presentation on our Investor Relations website site at www.simulations-plus.com. After management's commentary, we will open the call for questions.
As a reminder, the information discussed today may include forward-looking statements that involve risks and uncertainties. Words like believe, expect, and anticipate refer to our best estimates as of this call. There can be no assurances that these will actually take take place, so our actual future results could differ significantly from these statements.
Further information on the company's risk factors is contained in the company's quarterly and annual reports and filed with the Securities and Exchange Commission.
With that said, I will turn over the call to Shawn O'Connor. Shawn?

Thank you, Tamara. Good afternoon, everyone, and thank you for joining our first-quarter fiscal 2024 conference call. Results for the first-quarter fiscal 2024 played out as anticipated. We delivered solid revenue growth was 21% and diluted earnings per share of $0.10 in line with our guidance for the full year. Our team performed very well in what is still a softer environment for our biotech and pharmaceutical clients.
A few notes on the background behind our results. As our clients closed out their fiscal years, we saw the usual spend before you lose in 2023 activity, a rush to use allocated budgets before for the year end. Even though the spend fell short of previous year-end highs, we were encouraged that it was greater than what we saw last year.
We also gained insight into our clients' budgets for fiscal 2024. Some had more aggressive budgets while others had more cautious as the industry's portfolio of drugs that are going off patent looms on their horizon, causing them to be more conservative on spending.
Funding for biotech continued to show signs of life, but again, was still well below the funding levels of two to three years ago. Importantly, our leadership in AI and predictive analytics continue to accelerate discovery efforts and improved clinical outcomes for our clients.
For context, we have been utilizing AI techniques and approaches in our solutions since our beginning. As AI technologies have evolved, we have enhanced our AI solutions and experienced the benefits that can be harnessed with better data access, algorithm training, and predictive accuracy.
Our tenure in serving the drug development industry has provided significant access to private and public data necessary to perfect and refine predictive algorithm. Our partnerships and collaborations with industry leaders and regulatory agencies is unmatched and provides us with ongoing means to continue this into the future.
Moving to our software segments' performance. Software revenues increased 25% for the quarter, reflecting good renewal activity in converting and actives and strong pipeline. Our physiologically based pharmacokinetics, or PBPK business unit, had a strong quarter.
Revenues increased 27% for the quarter, reflecting some spillover from the fiscal fourth-quarter 2023 and a diminishing impact from small biotech client renewals that previously weighed on results. GastroPlus was referenced in 21 peer-reviewed journal articles and the PBBK business unit added six new customers. The team also booked nine commercial client upsell.
In our clinical pharmacology and pharmacometrics, or CPP business unit, revenues declined 1%. Biotech churn still exist in CCP, where we lost eight customers whose total revenue was only $120,000. In total, CPP added 9 new customers and had 10 customer upsells in the quarter, with one renewal shifted to the second fiscal quarter.
Our cheminformatics business units saw revenues increased 3% in the first quarter.
There were two non-renewals, one from a small biotech and one renewal that was delayed for renewal later in calendar 2020 for the team, but five upsells during the quarter and added two new customers in our quantitative systems pharmacology or QSP. business unit revenues increased 219%, reflecting a new license and existing customer for the QSP. oncology modeling platform.
No new customers were added during the quarter and the team booked one resolve.
Given the large per license dollar amount and smaller client volume associated with this business, quarterly outcomes can be lumpy.+
Looking at our Services segment, revenues grew 17% during the first quarter.
Services had a good start to the fiscal year as the momentum out of fiscal 2023 continues.
Their overall services saw more choppiness than usual and project flow due to data and other client related delays that impacted project deliveries.+
Services.
Revenues in our CPPD. business unit were up 12% in the first quarter, a good outcome.
CPP. completed 67 projects in the quarter and continued its momentum from the end of the fourth quarter with excellent bookings in our QSP. business.+
Unit Services revenue grew 100% for the first quarter, including the benefit from the annual net metrics.
Acquisition team completed 27 projects during the quarter with one cancellation from a large client that negatively impacted overall backlog.
Services revenue in our PBPK. business unit declined 12% in the quarter as revenues were negatively impact patented by client related data delays and affected project deliveries in milestones.
During the quarter, the team completed 63 projects given the pipeline.
The outlook for PVPK. looks solid for the year.
Cdma networks integration continues to go well.
Haemonetics has an active pipeline reflecting inherited leads and new leads sourced in the SLP. client base post acquisition.
Overall, the QSP. team is executing very well in this collaborating on projects.+
Before turning the call over to Will, I'd like to call your attention to a separate release that we issued simultaneously today announcing for TD leadership appointment effective today.
First fill.
Frederick is assuming the additional role of Chief Operating Officer.
Well, he's been with Simulations Plus since 2020 and has demonstrated excellent operational leadership over this time.
In his new role will now overseas operations for all of our business.
And second, we're pleased to welcome those Chief Revenue Officer and has over 20 years of enterprise sales experience across all phases of drug development in large organizations.
In this key role, Dan oversees the sales and marketing teams to identify collaborative cross selling opportunities and enhance productivity.
Third, just fully is transitioning to Senior Vice President of Operations and will leverage his customer insights to provide client focused leadership across all business units.
And finally, Dr. Sandra saw a sharp has been promoted to President regulatory strategy.
Standard is responsible for expanding our regulatory strategies business unit, the critical fast growing component of our overall services offering.
These appointments recognize the experience and proven contributions of each of these leaders.
Importantly, we share a common vision of always putting our clients first, the best possible way to ensure long-term sustainable growth.+
I'd also like to take a minute to thank those of you attended our first Investor Day in November.
We had a great turnout and the feedback has been positive.+
In addition to a deep dive into our business, we also outlined our new organizational structure.
With this new structure.
We reorganized the companies we acquired over the years into five business units that correspond to the scientific domains in the drug development process in which we have expertise.
This structure aligns with how our clients do business with us and encourages cross selling and collaboration.
Our team continues to deliver tremendous value to our clients, providing customized services and easy-to-use software offerings, each of which is at the core of our business model.+
So with that, I'll turn the call over to Will.+
Thank you, Sean.
We had another strong quarter with total revenue increasing 21% to $14.5 million, with software revenue up 25% and services revenue up 17%.
Software revenue represented 52% of total revenue for the quarter.
On a trailing 12 month basis, software revenue increased 21% and services revenue increased 9%, as we've mentioned in the past quarter due to seasonality and this year is no different.
We are anticipating that we will see seasonally higher revenues and the remaining quarters of fiscal 2024, as we have had in the past, resulting in higher profitability in the remaining quarters of our fiscal year.+
Here.
Total gross margin for the quarter was 68%, reflecting higher cost of revenues in the services segment as a result of updated reporting changes.
Software gross margin increased to 87% from 85% last year, while services margin decreased to 47% from 70% last year, primarily due to a shift from previously recorded multiple cost items in SG&A expense before the reorganization and now separately reflecting them in cost of revenues for services, gross margin for the trailing 12 months through this quarter were approximately in line with the trailing 12 month ending first quarter of fiscal 2022.+
I'll go into more detail on how our reorganization impacts our expense reporting in just a few minutes.+
Turning to software revenue by business unit for the quarter, PBTK. represented 52% of software revenue.
CPP. was 20%.
Cheminformatics was 15% in QSP. was 13% for the trailing 12 months.
PBPK. represented 57% of software revenue.
CPP. was 18%.
Cheminformatics was 18% in QSP. with 7% for the quarter.
Our customer renewal rate increased to 100% based on fees and increased to 84% based on accounts for the quarter.
Average revenue per customer increased to 79,000.
For the trailing 12 months, our customer renewal rate remained at 93% based on fees decreased to 83% based on accounts for the trailing 12 months, average revenue per customer increased to $93,000.
The lower account renewal rates are still primarily driven by non-renewals from smaller biotech customers, but we've been able to maintain our fee renewal rate consistently above 90% even with this headwind.+
Shifting to our services revenue by business unit for the quarter, CPP. represented 46% of services revenue.
QSP. was 30%.
PVPK. there was 19% and RIG was 5%.
For the trailing 12 months.
CPP. represented 45% of sales.
This is revenue.
QSP. was 28%.
PVPK. was 22% and RIG was 5%.
Total services projects worked on during the quarter was 179, same as last year and quarter end.
Backlog increased to $18.9 million compared to 15.8 million at the end of the first quarter last year.
Anticipated revenue from backlog within 12 months increased to slightly over 80%.
As we previously discussed, the addition of Haemonetics has led to a healthy pipeline of activity, including new accounts sourced from our client base, helping to increase our overall services backlog.+
Turning to our consolidated income statement for the quarter, total R&D costs remain relatively consistent at $2.1 million with R & D expenses flat at $1.2 million and capitalized R&D at $29 million.
We improved focus on customers.
We also took the opportunity to evaluate our departmental structure with a focus on continuing to improve operational performance and profitability while providing our investors improved visibility to our progress.
In performing this process, we looked at personnel in the following departments, surpluses, R&D, sales and marketing and G&A.
This was done during Q1 to support the recently announced leadership changes in consolidation of company-wide operations to better measure and report our operational performance.
We made the following changes.
We moved all services personnel into cost of revenues departments.
He moved all R&D personnel into research and development expense departments.
We moved all sales and marketing personnel into selling and marketing expense departments.
And we moved all G. and A. personnel and all company-wide overhead and administrative costs into general and administrative expense departments still allows us to leverage the broad skill sets of our employees to perform activities and other departments and accordingly move their expense to those departments.
For example, services employee who spend time working on sales and marketing activities would have their expense related to this activity reflected in selling and marketing expense in our financial statements.
If the same person also spent time working on R & D activities there.
Expense related to this would be reflected in research and development expense in our financial statements.
These movements completed the final step towards standardizing reporting for the various acquired companies, including Immunomedics last quarter to a company-wide business unit structure reporting.
We believe investors will now have even greater insight to our cost structure and can compare future performance trends when they review our financial statements.+
We will continue our objective to reduce G&A expense as a percentage of revenue over time, while maintaining our investments in R&D and sales and marketing.
And as we've always done both software and services.+
Gross margins, selling and marketing expense for the quarter was $2 million, up from $1.5 million last year.
G&a expense for the quarter decreased to 5.7 million from 5.8 million last year.
Combined selling and marketing and G&A expenses accounted for 53% of total revenue compared to 60% of total revenue last year.
This comparison reflects the shift this quarter for expenses that were previously bundled together in SG&A and are now separately reflected in cost of revenues for services.
Personnel expenses generally grow each quarter with additional headcount added throughout the fiscal year.
Income from operations remained consistent at 7% of revenue and income before income taxes increased to 17% of revenue.
Other income was $1.4 million this quarter versus 0.7 million last year, primarily due to increased interest income of 500,000.0, even by rising interest rates.
Net income for the quarter was 1.9 million or 13% of revenue, up from 1.2 million or 10% of revenue.
Diluted earnings per share increased to $0.1 from $0.06 last year.
Adjusted EBITDA increased to 3.4 million or 23% of revenue compared to 3 million or 25% adjusted EBITDA margin last year.
We calculate adjusted EBITDA by adding back interest, taxes, depreciation and amortization, stock-based compensation gain or loss on currency exchange, any acquisition or financial transaction related expenses, any asset impairment charges and any tax provisions or benefits related to these items.
We provide a reconciliation of this non-GAAP metric to net income, the relevant GAAP metric in our earnings release and on our website.+
Income tax expense for the compassion Europe in our effective tax rate decreased to 19% from 23% last year.
Now turning to our balance sheet.
We ended the quarter with 113.9 million in cash and short-term investments, and we continue to be well capitalized, has strong free cash flow and seek opportunities for strategic acquisitions, investments and partnerships.+
I'll now turn the call back to Sean.+
Thank you.
Well, our first quarter results provided a successful start to the year.
We saw good performance from both our software and services segments.
That said, the underlying assumptions regarding our outlook remain the same as client funding and budget cycles remain softer than historical levels.
Following our fiscal 2023 revenue growth of 11%.
We said fiscal 2024 revenue guidance with the range of 10% to 15%, given our first quarter results were cautiously optimistic that the market for model a model and form drug development could improve and return towards mid 10s growth, but it's too early to change our outlook.+
With that context, we are well positioned to meet our stated fiscal 2020 for guidance targets, which include total revenue between 66 and $69 million year over year, revenue growth in the range of 10% to 15%, software mix between 55% and 60%, services mix 40% to 45%, and diluted earnings per share of $0.66 to $0.68.
The atmospheric collaboration is strong Harrods Simulations Plus of our clients to help develop safer and more effective drug solution.
They have a long history of innovation in biosimulation that is transforming drug development and R&D and a rich future for growth opportunity.
We continue to grow revenues, deliver profitable growth and generate cash.+
Thank you for your time today.
And with that, I'll now turn the call over to the operator for your questions.+
Thank you.

Question and Answer Session

We will now be conducting a question and answer session.
He would like to ask a question, please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue, you may press star two.
If you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.
one moment, please.
While we poll for questions.
Thank you.+
Our first question comes from the line of Matt Hewitt with Craig-Hallum Capital Group.+
Please proceed with your question.+
Good afternoon and congratulations on a good start to the year.
Maybe first one, I'm hoping we could get a little bit more color on what you're hearing from clients and customers.
It sounds like the very small end of the spectrum continues to have some maybe budgetary or balance sheet issues.
But what are you hearing from the larger customers?
Are they starting to feel a little bit more comfortable with the environment and maybe they're coming in and some middle pie buying more and setting up more services?+
Yes, Matt, that and I can be yes, we've seen some good discussions in terms of some of our larger clients engage, very good renewal rates this quarter.
Very good uptake in terms of this year's price increase, very positive signs in terms of some of those accounts and their budget setting for 2020 for calendar year.
At the same time, you get the sizes of the world announcing a 2024 cutbacks in this environment in terms of a patent fall off in terms of some of their revenue producers.
There are a good segment of those large pharma that are being relatively cautious today and into their 2020 for fiscal year.+
So a little bit of a mixed bag of math.
I certainly see some very PA positive signs.
But I'd say compared to a year ago today, better as compared to years past, not quite there yet, and we're on the right path, at least from that.+
And maybe another question regarding the services gross margin and some of the reporting changes that have occurred.
So if I'm hearing you correctly that the services gross margins will stay kind of in the upper 40s.
They're not going to bounce back into the 60s here in Q2.
Is that correct?+
Yes, the reorganization and the resulting accounting reclassification of certain people and I can expenses that will carry forward as we proceed into the next year.+
Our margins are good in the software business.
We've sort of reset them with this reclass vacation of expenses that going to go back to where it was before.
But should maintain in the ballpark of where it's at.
And with these changes, the reorganizations and I anticipate seeing improvements, efficiencies that come come as a result of that Liberty overall unchanged in terms of the model, if you will, but it reallocation of some of those expenses that I showed previously, primarily in the G&A part of SG&A up into the gross margin line.
That'll that'll continue going forward.+
That makes sense or right.
And maybe one last one, then I'll hop back into the queue.
It sounds like the metrics acquisition integration is on track.
You talked I think you mentioned a couple of different times regarding some of the cross-selling synergies.
Maybe just a little bit more color there on what some of this new addition ARM has meant as far as opening up some new doors on creating some new conversation.
So anything along those lines?
Thank you.+
Yes, Matt, that yes, it's gone gone very well from an internal perspective.
First, at the teams, the QSPE team pre acquisition, combined with our new team members for mainly metrics have come together and are working well.
We're already seeing in cross-pollinate organization there.
And in the sense of and some of our team working on their projects.
I am so very, very good effort day internally externally.+
Yes, the pipeline they brought to us upon the acquisition has continued to develop, and it's been supplemented with the ability to put their models, their expertise, their therapeutic areas of expertise in front of more clients than a they were able to do as a stand-alone entity, introducing them to the ESOP client base.
And that's generated hosts are new opportunities that are very busy sales effort on that side.
So very pleased.
The acquisition was closed that long ago as of July and I'd say is weak the six month market here.
So the first half year has been they've been very good in terms of the post acquisition activity, both internally and externally.+
Excellent.
Thank you.+
Thank you.+
Our next question comes from the line of David Larsen with BTIG.+
Hi, congrats on the good start of the year.
I was I'm pleased with the revenue number that you reported.
Can you maybe just talk a little bit about on the software side, the kinds of price increases you're able to realize heading into calendar 24 that will impact 2Q.
I'm trying to get a sort of the sequential progression in revenue for software as we head into fiscal 24.
And then also I see I think it was 100% fee retention, which seems to suggest to me that you can take price.
So thanks, Tom.+
Yes, yes, yes.
The now a couple of got embedded in your question there.
Yes, in terms of anticipating significant sequential software revenues, you know, I'd point to the seasonality of our business coming out of the fiscal year 23 last year.
We operate with a software revenue seasonality profile that on an absolute dollar level of our first quarter is the lowest quarter for software revenue.
And then it steps up in second, third and fourth quarter and to be more comparable in terms of absolute dollar level.
So on a year-over-year basis, our growth now, if you recall, we had the harmonization process taking place last year with change that seasonality.
That process is done.
And as we enter into this year, our revenue growth software was should be relatively consistent on a quarter-to-quarter basis.
Doesn't say that they're linked quarters.
And in this quarter we had some renewables that slipped out of the fourth quarter and came into the end of the first quarter with regard to price increase, our price increase, we announced when we put that in effect and for fall timeframe.
And so the price increase that is already affecting this first quarter results to the extent that those renewals occur in the first quarter, but not necessarily a jump up from first to second quarter a year over year.+
Jump up in terms of the price increase, anticipating your question there, how we were certainly more aggressive last year and fiscal year 2013 versus 22 in the price increase that we implemented last year than we were this year.
Economics have changed a little bit macroeconomic environment.
And so our initiated price increases not quite as large as it was last year, but it's a it's a good contribution as we go into next year.+
From 100% renewal on Friday this year.
We are reflective of a very good renewal rate.
Mike Harrison of the renewal on accounts, which is always is lower.
The accounts that the closed out and did not bring new were all relatively smaller towns.
So their impact on fees was was marginal and the price increase came in and basically on a renewal on fees calculation offset those few accounts, but they're not they're not brilliant.
Hope that answers the aspects of your question there that it does.
Thanks very much.
I can you just remind me with regards to seasonality, what causes the uptick in software revenue from fiscal 1Q to fiscal 2Q?
Thanks.+
Well, it's just that, generally speaking are in any given quarter 80% renewal, 10% to upsells and 10% at new logos.
And so from a dating back to our origins when a client signs up, typically there and the revenue because it's all 100% recognized up front and the 12 month license window forevermore, their license revenue falls on the quarter in which they initiated that business.
So bear with us in the first quarter.
Typically they have quarter ended in November is not a new license window.
December picks up because of some licenses at the end of our clients calendar year, January, February are more active.
New budgets allow me to license and other seeded the outpatient and hence the step up from first to second quarter and then more consistency through the remaining quarters of our fiscal year.+
Okay, great.
And then just in terms of your own COGS and inflation in terms of like a price increases that you're providing to your own scientists that has level of, I guess, inflation sort of moderated a bit, which would obviously be a benefit to margin.+
Yes, it certainly in comparison to last year, the compensation profile in terms of the marketplace for our scientists have it has settled.
It's settled at early in the last fiscal year.
Really our big jump-up in terms of compensation packages took place.
When you looked at our fiscal 23 versus fixed 22, where we had a pretty significant step-up that post COVID timeframes and some remnants of the biotech, a flurry of funding that led to their hiring, which increased competition in the marketplace for the scarce resource actively early and our last fiscal year.
And so you roll forward from fiscal 23 to 24?+
Yes, no, there is a real wage inflation that takes place, but not nearly as dramatic as it was 23 versus 22.+
Can you just just one more for me on with regards to immune metrics?
If I think if I heard you correctly, the revenue being generated from aim in metrics is expected to gain momentum and continue to increase cross-selling and expand change.
Your existing book should only grow as we have through 24 and into fiscal 25.
And that would obviously benefit.
I think the QSP. slash QST. line item for services are right.
Absolutely good benefit here already in the first quarter where we saw 100% growth and QSP services revenue.
That's indicative of the contribution of any metrics there already.
And they are working towards that earn out.
That earnout is framed in calendar years.
Our fiscal year.
And so they just recently completed the window of their first and are now out of the calculations are being made as to where they fell out there.
We'll know that.
So momentum is good and they will contribute to our DSP business unit.
Quite nice isolates anticipate to through the end of the two through this fiscal year fiscal year and beyond.+
Just one more for me, I'm sorry, China of 51%.
Anything to highlight there?
And can you just remind me what percentage of revenues come from China?+
Yes, it's a small contributor.
Are revenue is about 20 of March.
We were to include Russia in that bucket.
So it's a good growth on a small number of the year.
The growth is entirely software.
We don't have the consulting on the ground in that region.
And so yes, we've been pleased.
I think this is the spin of good sequencers, two, three, four quarters and that in that region course.+
Okay.
I'll hop back in the queue.
Congrats on a good quarter.+
Thanks, Dick.+
Thank you.+
Our next question comes from the line of François Brisebois with Oppenheimer.
Please proceed with your question.+
All right.
Thanks for your question and congrats on unemployed.
Do you share what you consider are aggressive in terms of price increase percentage-wise or what you've done there?
Or any color on how what kind of percentages those are?+
Yes.
I mean, we haven't gotten specific there, Frank, but from a ballpark point of point of view, at 5% to the price increases have been sort of the norm in the industry rate at in this past year that could have doubled.
And you know, this year we returned to historical path.+
Okay.
And when you say that on the space, we're hoping that it goes back to mid 10s growth in terms of the space you where would you consider the growth now?
Where is the growth now?
I mean, our guidance of 15% tells you that, you know my my outlook for the growth of the businesses and that, you know, it may as we remain pretty cautious given the sluggishness of the market.+
Now in terms of expected the long-term growth out of this market segment that would be in the 15% or above the sort of range.+
Okay.
I guess what I'm trying to do it again is a for you to pass.
Can I get you could get by the growth of the market would debt, is that doable organically or does that acquire M&A?+
Yes, thank you.
As always been that we can grow at or above market growth and then a basket of goods and services that are included in most of your computational biology research reports.
We don't play in all of the markets under that umbrella.
And so there is some some differences in terms of how you slice the pie there.
But generally, if you look back historically, we've been able to grow at or above the market and supplant that with acquisitions that then become part of our organic growth and they are in the long run.+
Okay.
And in terms of the ratio there, the software and services, obviously Immunetics gives us a little more of a push on the service side.
What would you ultimately down the road?
Can you help us understand where you would like to be in terms of their ratio?+
Sales at a 60 40 has been our mantra pretty consistently.
I mean, I told you that at that at this point in time, I think it's important to that.
That is a input to top-line revenue growth and bottom line profitability.
Obviously, the mix of software revenues and service revenues can contribute to that profitability.
It's a number of those two revenue sources in different ways.
And so we've always targeted that sort of split to maintain the profitability, service opportunities arise and service opportunities are there ways for us to broaden our support of our clients and their metrics fits right in a day that didn't exist in the company before.
So there's always going to be a trade off over time, but our commitment is to maintain a good the high end or above market revenue growth at the top line and good profitability profile of a commodity.+
Additionally.+
Thank you.+
I think our next question comes from the line of David Larsen with PTIT.
Please proceed with your question.+
Just a quick follow-up here.
It seems like in the deck some of the divisions, maybe we've renamed.
I just wanted to make sure that that's the case like PBPK. is gastro CPM model mix, cheminformatics, admin, QSP. other finance CPP would be PK/PD and rig is other correct or not.
You've got the two forms of presentation in their day-to-day business units are the PBPK, the cheminformatics, the CPP. eight clinical pharmacology, pharmaco metrics and the registrant and regulatory strategies of the business units.
And when we report the software underlying details, I guess there are pluses that the primary software product in the UK business unit Monolithics as the primary product and CPP and at that predictors, the primary product and cheminformatics.
And so we're presenting information that is summarized by business unit has summarized by product.+
Okay, fantastic.
Thank you to Rotterdam.+
Thank you.+
There are no further questions at this time.
I would like to turn the floor back over to Mr. Shawn O'Connor for closing comments.+
Very good.
Thank you, operator, and thank all of you for your attention today.
A good start to the and I look forward to reporting continued results next quarter ticker.+
This concludes today's teleconference.
You may disconnect your lines at this time.+
Thank you for your participation.+
From?+
No, no, no.+
Okay.
No, no, no.
From a minimum number two.+
Yes, no, no, no, no.
No?+
No, no, no, no, no, no, no.
No, no, no, no, no.
Tom for more?+
No, no home boom.+
Mm-hmm.
No, no, no, no, no.
Mona?+
No, no, no, no, no, no, no, no.
Thanks.+
Thanks.+
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Thanks.+