Q4 2023 BioLife Solutions Inc Earnings Call
Participants
Troy Wichterman; Chief Financial Officer; BioLife Solutions Inc
Rod de Greef; Chairman & Chief Executive Officer; BioLife Solutions Inc
Paul Knight; Analyst; KeyBanc Capital Markets Inc.
Jacob Johnson; Analyst; Stephens Inc.
Steven Mah; Analyst; TD Cowen
Thomas Flaten; Analyst; Lake Street Capital Markets
Michael Rabinowitz; Analyst; Maxim Group
Presentation
Operator
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the BioLife Solutions Q4 2023 shareholder and analyst conference call. (Operator Instructions)
Please also note, today's event is being recorded. I would now like to turn the call over to Troy Wichterman, Chief Financial Officer of BioLife Solutions. Please go ahead.
Troy Wichterman
Thank you, operator. Good afternoon, everyone, and thank you for joining the BioLife Solutions 2023 fourth-quarter earnings conference call. On this call, we will cover business highlights, financial performance for the quarter and 2024 revenue guidance.
Earlier today, we issued a press release announcing our financial results and operational highlights for the fourth quarter of 2023 and 2024 revenue guidance, which is available at biolifesolutions.com.
As a reminder, during this call, we will make forward-looking statements. These statements are subject to risks and uncertainties that can be found in our SEC filings. These statements speak only as of the date given and we undertake no obligation to update them. We will also speak to non-GAAP or adjusted results. Reconciliations of GAAP to non-GAAP or adjusted financial metrics are included in the press release we issued this afternoon.
Now I'd like to turn the call over to Rod de Greef, Chairman and CEO of BioLife.
Rod de Greef
Thanks, Troy, and good afternoon, and thank you for joining us for BioLife's fourth quarter and full-year 2023 conference call. It has been a busy four months since rejoining the company as CEO., and I'm encouraged by our team's ability to navigate one of the more challenging environments for the life sciences industry. In recent memory, not to mention their consistent execution throughout the organizational changes related to our strategic refocusing on higher margin recurring revenue streams over time from BioOne has become the industry standard in terms of biopreservation media and has established itself as a leading provider of premium brought bioproduction tools and services. The critical picks and shovels thus support the fast-growing cell and gene therapy industry. This is our mission, and I'm convinced more than ever that BioLife is in an excellent position to benefit as the space matures, expanding upon our already dominant share of the market and offering diversified exposure to the nascent industry, which we expect to grow at 20% to 25% kegger through 2033.
As we look back on an undeniably challenging year for the CGT. industry. We recognize that BioLife was not alone as companies large and small felt the impact of inventory destocking, a constrained funding environment and weaknesses in China our full year results were certainly impacted by these challenges, but our initiatives to divest the freezer product lines and refocus helped us exit the year with positive momentum with encouraging early signs that the macro headwinds facing the industry may have begun to subside. We similarly saw evidence of stabilization and momentum in the CGT. industry and our business as demonstrated by our fourth quarter cell processing platform revenue growing 11% sequentially over Q. three and across our top 50 biopreservation media customers who account for 90% of total media revenue growing 14% compared to the third quarter. It is early and as we have said, we will need to continue to work closely with our customers to manage inventory at normalized levels, which we believe positions us well for what could be a sustained recovery as 2024 progresses.
With that, let's take a closer look at our full year 2023 results. Total revenue for 23 was $143.3 million, an 11% decrease compared to 22. Ex COVID, revenue decreased 4% for the year as there was no COVID related revenue in 23.
Looking across our platforms for the full year of 23, our cell processing platform revenue declined 4% to 65.8 million from 2022 due to a 6% decrease in our biopreservation media revenue, which was partially offset by a 9% increase in our other cell processing tools, which include ourselves, seal, HPL. and CT. automated fill product lines. In 23, our top 20 media customers accounted for 78% of media revenue and were up slightly year over year by 1%. And our All Other category decreased by a total of 26%. In 23, distributors accounted for 40% of total media revenue compared to 38% in 22. Customers with commercially approved therapies accounted for an estimated 52% of Direct Media revenue in 23 compared with 49% in 22. Keeping in mind that some of this revenue is related to validation, R&D and other clinical work. In addition to patient dosing, our full year 23, BioStorage and services platform revenue decreased 2% to $25.9 million. However, excluding prior year COVID related revenue, this platform grew a strong 61% as Gary Richardson's team did an excellent job of replacing lost COVID revenue. We are currently in the process of consolidating our two Boston area facilities, which we expect will save approximately 0.5 million in annual operating costs and which should be completed early in the third quarter. Our 23 freezer and thaw platform revenue declined 23% or $15.1 million from 2022, primarily due to a difficult capital equipment environment and the competitive disadvantage generated by the divestiture process. As you know, we have been in the process of divesting the CBS and Stirling freezer entities since August of last year, we recently signed two separate LOIs for the sale of these freezer product lines and our goal is to close these transactions within the next 45 to 60 days. All in all, this has been a difficult and time-consuming process, and we expect no net proceeds. And in fact, we'll realize an initial cash outflow. This initial cash outflow will be offset by the elimination of future cash burn and certain long-term debt as well as future product warranty liabilities while materially improving our overall 24 financial performance and margin profile on a more macro industry, note, 2023 was a breakthrough year for CGT. approvals in the US. This momentum continued into the first quarter of 24 with the recent approval of IO advances, groundbreaking tool based therapy and tag V an industry first, which we support with two of our biopreservation media products. This brings us to a total of 14 unique approved therapies, which have our biopreservation media embedded and three of these unique approved therapies also utilize our CELSIUS vials in the next 12 months, we believe there could be up to 10 additional unique therapy approvals, expanded indications or geographic expansions, which include our proprietary products. In addition, to our strong market position in approved therapies. We believe there are currently more than 230 active U.S. commercially sponsored clinical trials and estimate that our biopreservation media is embedded in more than 70% of those trials.
Looking at these statistics, it's evident that BioLife is a clear industry standard when it comes to biopreservation and as the industry grows so do we we have amassed a class defining portfolio of products to improve quality and reduce risks in the manufacture and delivery of these novel therapies. We have earned a high level of trust with our marquee customer base and operate in an environment with limited credible competition specifically in the area of biopreservation.
As we look ahead, we are taking a cautious approach toward our 2024 revenue guidance despite certain customer conversations, which suggests some growing optimism around improving market conditions in the second half of the year. At this point, we are expecting 2024 revenue, excluding freezers, to range from 95.5 to 100 million with our cell processing platform generating between 66 and $68.5 million and our BioStorage and services platform, which now includes our fall product line to range from 29.5 to $31.5 million. While the total year over year growth rate of 2.7% may seem modest. I would point out that against an annualized second half 23 run rate, which we believe is a more appropriate baseline given the industry challenges of last year, our guidance for total revenue growth is 13% to 18%, with cell processing growing at 17% to 22% and BioStorage and services at 4% to 11%. As we progress through 24, we're committed to delivering increases in revenue, gross margin and adjusted EBITDA, both in absolute terms and as a percent of revenue.
At this point, I'll turn the call over to Troy to provide a more detailed review of our financial results. Troy?
Troy Wichterman
Thank you, Rod. We reported Q4 revenue of $32.7 million, representing a decrease of 26% year over year. And excluding COVID related revenue from Q4 of 2020 to the decline was 23% year-over-year decrease was primarily related to a $6.1 million decrease or 35% in our Freezers and Thaw systems platform and a $5.4 million or 27% decrease in our cell processing platform, reflecting the industry headwinds and destocking in 2023. However, our sequential growth in Q4 from Q3 for the cell processing platform was 11%. As Rod mentioned, we are starting to see positive indicators for future revenue growth for the cell processing platform.
Turning to our BioStorage services platform, revenue for the fourth quarter was $6.6 million, a decrease of 1% over the same period in 2022. Excluding COVID-related revenue from Q4 of 2022 revenue in Q4 2023 increased 26% as the COVID related revenue was backfilled Freezers and Thaw systems platform revenue for the fourth quarter was $11.4 million, a decrease of 35% over the same period in 2022. Excluding COVID related revenue from Q4 2020 to revenue in Q4 23, decrease 32%. Adjusted gross margin for the fourth quarter was 35% compared with 32% in the prior year. The increase in adjusted gross margin was primarily due to product mix related to decreased revenue from our freezer business and lower warranty and scrap expense from our ULTRA product line. Adjusted gross margin increased approximately 450 basis points sequentially largely due to increased cell processing revenue and product mix.
Gaap operating expenses for Q4 2023 were 45.9 million versus $93.5 million in Q4 2022. The decrease was largely due to the non-cash asset impairment charge we took during Q4 2022 in the freezer businesses of 40.5 million adjusted operating expenses for Q4 2023 totaled $20.4 million compared with $22.1 million in the prior year. The decrease was largely due to reduced personnel expenses from the reduction in force in Q3 2023, decreased consulting costs and a reduction in travel expenses. Our adjusted operating loss for the fourth quarter of 2023 was $9.3 million compared with $8.2 million in Q4 2020 to our GAAP net loss was $13.4 million in Q4. The decrease in net loss was primarily due to the 40.5 million noncash intangible asset impairment charge related to Sterling and CBS. taking during Q4 2022, adjusted EBITDA for the fourth quarter of 2023 was $700,000 compared with $1.7 million in the prior year. Our adjusted EBITDA decreased primarily due to lower biopreservation media revenue. Adjusted EBITDA for Q4 increased sequentially by $3.8 million from Q3, largely due to higher revenue from our cell processing platform, reduced freezer R & D costs and decreased personnel costs and was the first positive quarterly adjusted EBITDA for the year.
Turning to our balance sheet, our cash and marketable securities balance at December 31st, 2023 was 52.3 million compared with $42.2 million at September 30th, 2023. Taking into consideration our adjusted EBITDA of $700,000. Our increase in cash during Q4 2023, it was primarily related to a $10.4 million PIPE that closed on October 19th, 2023 was an existing shareholder. Our SVB long term debt balance was $20 million, which is interest only through Q2 2024, with quarterly repayments of $2.5 million beginning in Q3 2024.
Turning to 2024 revenue guidance. Our 2024 guidance is based on expectations for our cell processing and BioStorage services platform, which now includes the Foster automated fine devices product line and does not include any revenue from freezer product lines, which are in the process of being divested. Total revenue is expected to be 95.5 million to $100 million, reflecting an overall growth of 2% to 7%. Our cell processing platform is expected to contribute 66 million to 68.5 million or flat to 4% growth over 2023. Our BioStorage services platform is expected to contribute 29.5 million to $31.5 million or 5% to 12% growth over 2023 and on a like-for-like basis growth of 10% to 16%. In addition, we expect revenue gross margin and adjusted EBITDA growth in 2024.
Finally, in terms of our share count, as of February 22, 2024, we had $45.3 million shares issued and outstanding and 48.2 million shares on a fully diluted basis.
Now I'll turn the call back to the operator to open up for questions.
Question and Answer Session
Operator
Paul Knight, KeyBanc.
Paul Knight
Hi, Ron and Troy. Does the LOI allow you to move the freezer assets to discontinued ops for the statements?
Troy Wichterman
Unfortunately, Paul, what we need to do is actually have a signed document, then we can move them into discontinued ops. Obviously we are, you know, working through the final diligence and in parallel crafting the legal guys are crafting the documents. So we're hoping 30 to 60 odd days from today. These things will be done. And if we can get it done by the end of March, then they will be considered discontinued operations for the full quarter of fine LO. I get you to move them to discontinued. So it does not by itself a deal, a deal does.
Paul Knight
Okay. But you have less LOIs signed at this juncture. Are we on otherwise.
Troy Wichterman
So we have two signed LOIs, one for each of the entities clear term. Spelled out. Final diligence is in process with the buyers and the lawyers are working on the security purchase agreement and in the other case, an asset purchase agreements.
Paul Knight
And then you had positive EBITDA in the quarter. Rod, could you talk to steps taken to get to positive EBITDA.
Rod de Greef
Yeah, I'll let Troy deal with that, Paul.
Troy Wichterman
Yeah, Paul. So as you recall, we did a reduction in force towards the end of Q three. So that reduction expenses flowed through Q4 In addition, as I remarked in my script, we had the increase in cell processing revenue and then we did yes, we did a control on discretionary expenses such as consulting costs and travel.
Paul Knight
Okay. And then last question on my side, is the up 10 more potential of cell and gene therapies cutting in 2024 relative to 13? Excuse me, yeah,13 last year. I know it's not probably correct, but why not almost double than the level of revenue from approved customers that you gave in the call to get to potential revenue run rate on these approvals? Or what kind of qualifications would you put around that saying I can't just double my commercial revenue off CGD.s approved?
Troy Wichterman
Yes. So a couple of things there. When you're talking about a new unique approved therapy, there's definitely a ramp up.
Right. And if you follow the Iovance conference call as I did, they were very studious and not saying how many patients they expect that to be able to dose over any kind of near term timeframe. So there's a ramp that's one thing. The other thing, Paul, is that we have refined the methodology by which we look at what we call approved therapies. And especially as we look forward to that 12 month number, which is 10. That 10 includes the potential for three unique therapies and three new indications from an existing therapy as well as for new geographic indications. So or sorry, geographic regions. So that means that those are the drivers that actually increase the number of patients that could be dosed, right?
Rod de Greef
So for instance, Breyanzi could have three new indications in 2024. That's not necessarily a new approval in the way that we're looking at things now. So each one of these three aspects, whether it's a indication and expansion of indication, whether it's a geographic region expansion or whether it's actually a unique approval in addition to whether a therapy moves from, say, a fourth-line treatment to second-line treatment. Those are the variables that make up the patient count ultimately in terms of those being dose. So it's not a like for like.
Paul Knight
The last thing I promise is as you get these events happening in the year, I would assume they would do some additional stocking in front of it. And are you seeing that at this juncture?
Troy Wichterman
It's difficult to say. What I would say is when we look at a customer like Iovance who probably had a pretty good heads up that things were going their way. Their 23 purchases were nicely above 22 and their projected 24 is also nicely above 23.
Paul Knight
Okay. Thank you.
Operator
Jacob Johnson, Stephens.
Jacob Johnson
Hey, thanks. Good afternoon. Maybe Roger, just first on the freezer sale. I appreciate the commentary in the prepared comments. Appreciate kind of what you just outlined to Paul's question, but I guess kind of how confident you've got to analyze it sounds like this all hopefully be over in two months, but just how confident are you that this this will all be concluded in the next couple of months?
And then I heard you mention some maybe outlays related to the transaction. Is there any way to quantify that?
Rod de Greef
Yes. So I'm not going to get into any any details around the specific terms because they're not done yet. With respect to confidence, I met 70% to 80%, one of them.
Troy Wichterman
The buyer for Sterling knows the business extremely well. So it's not we don't believe anything is going to come a pop out of the woodwork that would be a showstopper for them a little less. So on the CBS. side, of things. But again, that's a cleaner business at some level. So we don't expect any sophisticated buyer, so we don't expect anything to pop out of there. So I'd say 75% to 80%, our confidence that we'll get it done in that kind of a timeframe.
In terms of the cash outlay, again, I'm not going to get specific about it but what I will say, Jacob, is that there's not the the size of it will not impact our ability to operate the Company with the cash that we have going forward.
Jacob Johnson
Got it. That's helpful. And then on the media side of things, it's good to see a pickup sequentially. You're guiding to kind of single digit growth year over year. But obviously, much better growth versus kind of the second half trends? And just kind of curious, is there any way to kind of quantify how much media what media looks like in the first half of the year versus kind of the back half and kind of the run rate you'll be exiting the year at or maybe alternatively, kind of how you're thinking about some of the headwinds last year sustain sustaining into this year, just as we tried to think about 24 and beyond?
Troy Wichterman
Yes. So we had a conversation with our largest distributor customer literally they were in our facility here a week ago, and they definitely expressed some confidence in the second half of the year. And I look at them based on the almost 6,000 customers that they sell our media to as sort of a proxy for just the small commercial, maybe even preclinical customer base. So I think there's there's good news there that the first half of the year might be a bit flat compared to the second half of last year, but that there could be an uptake there. Our commercial customers based on the projections that we're receiving from them and our larger clinical customers, let's say, our top 20, they are also suggesting that the first half is going to be maybe 45% of the total up for the year with the back half coming in at 55%. Admittedly, third and last year was a tough year and I don't want to get ahead of out in front of our ski tips too much and we'll be looking throughout the year every quarter as things change and our customers give us a forecast a rolling forecast every three months. And as those change and hopefully become more positive, then we'll share that. And that would be also shown in our guidance going forward.
Jacob Johnson
Got it. I'll leave it at two and get back in queue.
Operator
Steven Mah, TD Cowen.
Steven Mah
Three to Thanks for taking the questions. Can you comment on what you're seeing in terms of your comments of macro headwinds potentially subsiding? And they had a 11% sequential growth in Q4 in cell processing. Any sense you can share on how Q1 is shaping up? And then also, any comments on how inventory and destocking trends are looking like?
Troy Wichterman
Yes. Let me let me address the last. First, Steven, I think that when we looked at Q3 and Q4, we have four and five large customers requesting that we push their orders out and we're talking about seven figure orders, right, which was the major reason or past the reason that we had such a cliff drop from Q2 to Q three last year and in fact back even in Q4, we still had that three customers asking us to do that in Q1. So far, we've just had the one customer that has asked us to push things into Q2. And so we feel pretty good that that's an indication that from an inventory destocking perspective, things have kind of normalized with respect to the larger customer, again, that customer that we just had a meeting with that has sort of 6,000, I would say, smaller customers. They are indicating that what they're seeing is a flattening from the second half of last year and again, have expressed some optimism toward the back half of this year.
Steven Mah
Okay. Yeah and I appreciate that, and I'll finish up talking about the IQ. four, you know, the 11% sequential growth in cell processing. Can you provide any color on the gross margins in Q4? It seemed a bit lighter than we had expected and also in light of the growth in cell processing?
Troy Wichterman
Yes, on the gross margin, it did increase about 480 basis points, six basis points sequentially. We were not speaking specifically to product line gross margin, but that would be in line with our expectations at those revenue levels and on a consolidated basis, including the freezer businesses.
Steven Mah
Okay. Or things in and out. Let me sneak one more in on any more cost cutting are first contemplated or do you think the Company is rightsized?
Troy Wichterman
Yes, good question. I think generally speaking, we're right-sized. I think that there are things on the edges that we can still take advantage of. Clearly, we're really focused on any kind of some discretionary spending, particularly travel and putting a pretty fine filter on who goes where and why. And so it's I think we have we have some opportunities there throughout the year, but nothing like the sort of risk that we did in Q3 book.
Steven Mah
Thank you.
Operator
Thomas Flaten, Lake Street Capital Markets.
Troy Wichterman
Hey, good afternoon, guys.
Thomas Flaten
Thanks for taking the questions. Troy, in the guidance you made mention of positive adjusted EBITDA for 2024. I can you can you quantify that? I know you laid out that 16% to 18% adjusted EBITDA margin post freezer in the middle of last year. But it is that is that a number that's reasonable for us to think about for the second half of the year? Or is should it be lighter than that?
Rod de Greef
Yes, Thomas, that's a good way to think about it right. When you keep in mind the media level levels of revenue in the first half versus second half, right in our guidance with what we're saying, we're still comfortable with those pro forma numbers that we put out once the media revenue grows in the second half.
Troy Wichterman
I would add targets that, Tom, I would add that once the freezers are divested, we will be in a position to speak to our gross margin and adjusted EBITDA ranges for the balance of the year. We're constrained by certain GAAP requirements in doing that right now. But as soon as those things are gone, we will we will address that.
Thomas Flaten
Got it. And then a given that Gary has been in post for a little while now, could you qualify you just describe a little bit about some of the initiatives that I'm going to kind of up your up your revenue?
Troy Wichterman
Sure. I think I think the reality is around media revenue that the opportunity to drive revenue with existing customers is very limited as it relates to media revenue because they're going to use what they're going to use. So the opportunity on the media revenue is to understand where we are not, which when you look at a 70% market share on commercially sponsored clinical trials, as I mentioned, there's there's some place to go there, right? And we are going there to understand what, if anything they're using? Do they even have a cryopreservation interval at this time? Or are they using fresh product so that there's an exploratory phase going on there, I think where we do have the opportunity to actually move the needle from a revenue perspective, the cross-selling of the tools that we acquired from the Saxon acquisition and layering those into the market position that we have on the media side. So there is definitely that going on where there's a handful of scientifically oriented salesmen and taking those products and starting to set up meetings with those media customers to show them basically introduce them through the Sexton product line, whether it's HPL., whether it's the Celsius vial line. And I think we're starting to get some traction just based on some meetings that I'm seeing on the calendar, et cetera, with some of our larger customers. So that's an opportunity for growth here as we go through the year.
Thomas Flaten
And then one quick final one, if I might. Would you be willing to comment on across the size safe facilities what level of capacity you're currently at?
Troy Wichterman
Yes, I'd say if you blended it, we're probably in the 75 or 80% kind of range.
Thomas Flaten
Got it. I appreciate you taking the question.
Troy Wichterman
Thank you, Thomas.
Operator
Matt Hewitt, Craig-Hallum.
This is Jack on for Matt. On the recently received two approvals in Q4 and received two more so far this year. How should we think about the ramp of utilization of biopreservation media? Do customers have inventory on hand in anticipation of the launch or do they typically wait for the launch to commence and then take on additional product?
I think they definitely buy in advance of the approval.
Rod de Greef
I think we saw that just using Iovance as an example, where I mentioned earlier that their 23 purchases were up above 22, not just around the clinical trials, but in anticipation of an approval.
Troy Wichterman
We believe we think that what we see from them projection wise for 24 is more reflective of what they think patient patient dosing numbers are going to be. It's interesting that when we look at the dosing volume product use per patient, let's say, for sure, this particular application, this therapy uses the most of anything we have, but they don't give us projections. They've again specifically not provided the investment community with any projections about numbers of patients dosed.
Rod de Greef
But I would say that they keep a safety stock on hand generally speaking of between three and six months on the outside. And I think what we saw late last year was the movement from six months to more like a three month safety stock.
And I said, thank you.
Rod de Greef
You bet.
Operator
(Operator Instructions) Michael Rabinowitz, Maxim Group.
Michael Rabinowitz
Hey, guys, thank you for taking my questions today. So I guess one of the things that I do want to as we get towards the removal of the freezer business and returning to EBITDA positive on a full year basis and with a decent cash pile D, you start the process of looking into additional product lines that you could bring in?
Troy Wichterman
Or do you look more towards letting things settle and kind of waiting for better clarity on the direction of the market environment and I think we start by looking at the product lines that we have right now, both in terms of products and services, understand the investment required to drive those those products forward and clearly, there are certain external opportunities that we would take a look at, but we're going to be very selective. And just to be general about it, I would say we're early to be looking at those things. And unless something very special comes across our desk, that's probably from a looking outside standpoint, something we would do more in 2025 versus this year. We have a lot of work to do this year, both in understanding how to drive adoption of the current product line as well as implement systems.
So that the business runs more smoothly.
Michael Rabinowitz
Yes. All right. Thank you for that. And then just one more on you did touch on this a little bit on the one of the prior questions, but I'd like to see if you could provide a bit more color on what the impact of the freezer business looked like on adjusted EBITDA this past quarter.
Troy Wichterman
Yes. Unfortunately, we are a one segment reporting company, so we don't provide that information. But as Rod mentioned, we do look forward to providing further clarity once the divestiture process is complete.
Michael Rabinowitz
Fair enough. Thank you for taking my questions to best kind of.
Operator
Paul Knight, KeyBanc.
Paul Knight
Hey, Rod, I guess I got to give a shout out to these services grew by 26% growth rate ex COVID. How that how is this happening and some Why can't just go out like for a long time?
Rod de Greef
Yes, I think some of that Paul has to do with expansion from one of our very large customers and and some business that they had and that we were able to get not to diminish the other activity that Gary and his team did. But that was a bit of a one-off that I would say accounts for probably half of that growth. It's one of our larger customers on the storage side.
We have an excellent relationship with them and are kind of their go-to when it comes to expanded storage needs Okay.
Paul Knight
Thanks.
Operator
Thank you. Ladies and gentlemen, this concludes your question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks.
Rod de Greef
Thank you, Rocco. So in closing, I'd like to say that despite the relatively cautious outlook for 2024 that we're providing at this stage, we do strongly believe that the fundamental thesis remains intact and that the Company is very well positioned to take advantage of the underlying growth drivers of what is still a very nascent CGT. market to drive revenue and profitability, not only this year, but in years to come. We believe our biopreservation media is the industry standard and intend to leverage that market position to drive adoption of the other tools and services in our portfolio.
Thank you for your time today, and we look forward to updating you on future calls and meeting with some of you with the Cowen Conference in Boston next week.
Operator
Thank you. This concludes today's conference call, and we thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
