U.S. Physical Therapy, Inc.

Good day and thank you for standing by. Welcome to the U.S. Physical Therapy first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. In order to ask a question during the session, please press the star key followed by the number one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I'd now like to turn the call over to Chris Reading, President and CEO. Please go ahead, sir.

Okay, thank you. Good morning and welcome everyone to our U.S. Physical Therapy first quarter 2022 earnings call. With me in the office and on the line include Kerry Hendrickson, our Chief Financial Officer, Graham Reeve and Eric Williams, our Co-Chief Operating Officers, Rick Binstein, our Executive Vice President and General Counsel, Jake Martinez, our Senior Vice President and Controller. Before we begin today with some prepared comments, we need to cover a brief disclosure statement. Jake, if you would, please.

Thank you, Chris. This presentation contains forward-looking statements which involve certain risks and uncertainties. These forward-looking statements are based on the company's current views and assumptions. The company's actual results may vary materially from those anticipated. Please see the company's filings with the Securities and Exchange Commission for more information.

Thanks, Jake. So I'm going to start this morning with some highlights in color on the quarter, as well as some commentary on the operating environment. So while we wrapped up the quarter where we expected to be, we did have a particularly slow start to the year where January, particularly in February, meaningfully impacted as a result of the Omicron virus, which produced a pandemic high number of our team in quarantine. And this was especially prevalent in January. Of course, we dealt with the usual challenges looking back for winter weather. Despite that, we rallied hard in March with very good visit and referral numbers and a rather dramatic drop in quarantines and exposures. Both of those good trends have continued through the present period. On the visit front, we closed the quarter at 27.9 visits per clinic per day, which is up from the same period in 2021. Our team produced a really nice same-store visit growth number at 5.9%. I just want to call out to our partners, our sales staff, and our clinical staff, that's as good a number as I can remember we've ever hit in a quarter. And considering all of our challenges even to the start of this quarter, that's just an exceptional number. That was offset slightly on the revenue side in part by Medicare pricing adjustments announced earlier in 2021, but which became effective at the start of this year. In spite of that, our adjusted EBITDA grew 14.2% on overall volumes of 12.2%. which was over 1 million visits, and I believe that that's the most visits we've ever produced in the first quarter for our company. That drove physical therapy revenue up by 10.6%. Considering the challenging labor market, I feel like our team across all fronts did a spectacular job on staff engagement and management. Our total cost per visit was up less One was up less than one half of 1% year-over-year in our mature facilities, which I think is really amazing considering the broad environment right now. Another bright spot was in our injury prevention business, which we continue to invest since our first acquisition beginning March of 2017. Our IIP revenues for the first quarter increased 90% to $19.1 million. Of that increase, $6.8 million related to the acquisition we completed at the end of November of last year. Excluding that acquisition, our injury prevention revenues increased 22.4%. Again, a very strong number there and a great team, so thank you. The total company revenue grew by 17.2% for the quarter, despite, as I mentioned earlier, a slow start to the year. While our operating costs were off as a percent of revenue in Q1 as expected, especially with the rate impact, our biggest controllable costs in salaries and related costs held up extremely well in our facilities, again, up just 40 basis points compared to 2021 Q1, In our non-mature acquired and new facilities, I just want to make sure everybody remembers, those often, and we had a great development year last year, so we had a lot of those. They often come in at a lower margin than our aggregate mature facility margins. And of course, that was reflected in this recent quarter. I also want to remind everyone that the most recent injury prevention acquisition had a lower margin profile than that of our legacy business. The combination was expected to bring our aggregate margins in that segment down somewhat also. I think the team has proven that in spite of whatever comes, margin pressure, weather, pandemic, It certainly makes things more challenging, but we've been proven to be able to grow through these types of challenges as we continue to demonstrate the strengths of our model and execute on our opportunity at hand. These opportunities include development, which I will tell you is very strong right now, very busy, which includes the earlier announced deal with Chad Madden and Mike Gilbert, Pennsylvania, with the number of growth opportunities surrounding that partnership beginning to present themselves Additionally, we have opened 12 de novo facilities so far this year across our strongest PT partnerships, so we're off to a good start there. We're very, very busy on the acquisition discussion side of our opportunity as well, maybe as busy as we've ever been. While the environment is challenging for all healthcare providers right now, It is clear that over these past couple of years that we have the resources as well as the balance sheet flexibility to withstand these challenges and to grow through them and to continue to be a great home for like-minded partners who see opportunities to further expand their footprint and who believe in the future of our profession and the broad benefits that the entire system derives from our services. where we can become a valued partner with those private practices and their partners to help them thrive at a time when others are struggling to forge ahead. Our team has proven we are well equipped to do so over the long run regardless of these broader challenges. So we have a lot of information to cover. Kerry, if you would, get the financials in a little bit more detail, and then we'll open it up for questions.

We'll do. Thank you, Chris. And good morning, everyone. As Chris noted, our momentum built through the first quarter once we moved past the effects of Omicron, which we felt primarily in January. As a result, we posted operating results that were higher than the first quarter of the prior year despite the Medicare rate reductions that were implemented on January the 1st. For the first quarter of 2022, we reported operating results per share of $0.65 as compared to $0.64 in the prior year's first quarter. And as Chris noted, our reported adjusted EBITDA was $17.9 million for the first quarter of 2022, an all-time first quarter high for the company, and a $2.3 million or 14.2% increase over the prior year, which was the previous first quarter high. Our physical therapy patient volumes per day per clinic were 27.9 in the first quarter, which is also a record high first quarter volume level for the company. That's 3% higher than last year's 27.1 average visits per clinic per day. By month, our average visits per clinic per day for all clinics were 25.9 in January, 28.1 in February, and then 29.5 in March. You recall that March of last year is when we reached that 29 level in volume for the first time in our history, and we continued at that level or greater for the rest of 2021. So we're happy to see March of this year above 29 again, and April printed well also. Our net rate for our physical therapy operations was $103 in the first quarter of 2022, which compares to $104.72 that we reported in the first quarter of last year, which was our highest quarterly net rate in 2021. In the most recent fourth quarter of 2021, our net rate was $103.53, so our first quarter net rate is down 0.5% on a sequential basis from the fourth quarter. Our first quarter 22 net rate reflects the 0.75% Medicare rate cut and a 15% decrease in rate for care provided to Medicare patients by a physical therapy assistant, both of which went into effect in January of this year. As a reminder and as we've disclosed previously, the sequestration relief that we've had since the beginning of the pandemic will start to phase out in the second quarter when Medicare rates will decrease by 1% and then with the remaining 1% of sequestration rate relief coming out in the third quarter. Our total visits increased by almost 116,000 in the first quarter to 1,063,519 visits. That's an increase of 12.2% from the first quarter of 2021 to the first quarter of 22. The increase is due to both organic same-store growth and from the addition of new clinics. As Chris noted, our same store volumes increased 5.9% in the first quarter versus the prior year, and we had 40 more clinics on average open in the first quarter of 2022 and in the first quarter of 2021. Our physical therapy revenues were $110.4 million in the first quarter of 2022, which was an increase of 10.6% from the prior year. Revenues for the Industrial Injury Prevention business were at an all-time high, $19.1 million in the first quarter of this year, which was a 90.5% increase over the first quarter of 2021. And as Chris noted, even excluding our IIP acquisition in November of 2021, IIP revenue still increased 22.4%. Our team also continues to do an excellent job managing our costs and keeping our cost increases aligned with growth in revenue and visits. Our operating costs were $105.1 million in the first quarter of 2022, or 79.8% of net revenues, which was up from $86.5 million in the first quarter of 2021. So that was an $18.6 million increase in costs from the first quarter of the prior year, and that was mostly due to the significant increase in visits that we had year over year. When you look at it on a same store basis, our physical therapy operating costs per visit were $81.08 in the first quarter of 2022, up only 0.4% from the first quarter of 2021. And our total physical therapy operating costs were $83.09 in the first quarter of 2022, up only 2.4% from $81.18 per visit in the first quarter of 2021. Looking specifically at salaries and related costs, our salaries and related costs for all operations were 57.1% of revenues in the first quarter of 2022, only slightly higher than our 56.8% for the first quarter of 21. That represents only a 0.5% increase year over year in salaries as a percent of revenue. For our physical therapy operations only, salaries and related costs were $58.74 per visit in the first quarter of 2022, up only 1.6% from $57.83 in the first quarter of 2021, and it was down from $59.20 in the fourth quarter of 21. Our gross profit was $26.6 million in the first quarter of 2022, which compares to $25.9 million last year. Our gross profit margin was 20.2% in the first quarter, which compared to 23% in the prior year. Our margin was impacted by the Medicare rate reductions and, as Chris noted, the lower margin profile of the IIP business that we acquired in November of last year, which had a margin of 18.3% in the first quarter. Our corporate office costs were $11.6 million in the first quarter of this year as compared to $10.9 million last year. As a percent of revenue, our corporate costs were 8.8% of revenues in the first quarter of 22, which was down not from 9.7% in the first quarter of last year. A new line on our income statement, you'll know, was our other income includes a gain of $603,000 related to the revaluation of a put-right liability. As part of the November 2021 IIP acquisition, USPH and the founders of that acquired business agreed to the right for USPH to purchase a second phase of that business in five years. We have a liability on our books that represents the value of that put right. The put right must be revalued each quarter with any change in value recorded as a gain or loss in other income. The total liability was originally $3.5 million, and it's now $2.9 million after recording this change in value in this first quarter. Because it's not associated with our ongoing operations, we've adjusted this gain out of our operating results and will continue to do so going forward, whether it's a gain or a loss in any given period. Our net income attributable to non-controlling interest was $3.2 million in the first quarter of this year, which is less than the $3.7 million in the first quarter of last year, even though our operating income from our PT and IIP businesses was higher in the first quarter of this year than last year. As a percent of such profits, our non-controlling interest were 12.0% in the first quarter of 22 as compared to 14.3% in the first quarter of 21. The reduction in the non-controlling interest percentage is due to the purchase of non-controlling interest from equity, excuse me, from existing partners. In 21, we purchased $30 million of non-controlling interest from those existing partners, and we purchased another $2.3 million in the first quarter of this year. Finally, our balance sheet remains in an excellent position. Our cash generation remains strong. We ended the quarter with $118 million drawn on our $150 million revolving credit facility, which includes $11.2 million that was drawn on March 31 to fund the acquisition of the Madden Gilbert Therapy Company. Our net debt at March 31 was $102 million, which includes the $118 million on our line of credit. 4.2 million dollars in deferred payroll taxes under CARES and 4.1 million dollars in notes payable net of our 24.2 million dollars in cash. So that was 102.1 million dollars this first quarter. Our net debt position at December 31 was 94 million dollars. So in the first three months of 2022, we funded that $11.2 million acquisition. We invested $2.5 million in fixed assets, and we purchased non-controlling interest from our partners of $2.3 million. All of those things together totaled $16.1 million, but our net debt position increased only $8.1 million. As Chris noted in his comments and the press release, and also this morning, we expect to have another very productive year on the acquisition front. Our low leverage and our strong cash generation provide us with tremendous flexibility and sufficient capacity for the right growth opportunities as we identify them. And now, Chris, I'll turn the call back to you.

Great, Kerry. Thank you. Operator, we'll go ahead and open it up for questions.

At this time, if you would like to ask a question, please press the star and one on your touchtone phone. You may remove yourself from the queue at any time by pressing the pound key. Once again, that is star and one to ask a question. And our first question will come from Larry Solo with CJS Securities.

Good morning, Larry. Good morning. Hey, good morning, guys. I guess first question, Chris, Carrie, very good volumes, you know, Good start to the year. A little bit of an easier comp. I feel like you kind of things really normalized sort of in March of last year. So I think as we kind of head out now, it looks like Q2 and beyond, you were sort of back at pre-pandemic levels and growing. So how do you feel just, you know, I know you don't give exact guidance on sort of volume growth. Do you think you can still maybe not get 6% volume growth from Q2 on, but do you feel like you could still see historical 2% to 3% volume growth as we look at this year and maybe even the next few years?

Yeah, Larry, I think, you know, I'll go on record as saying over a period of time, I think we can continue to grow volumes. I'm going to try to avoid getting into a quarter-to-quarter speculation on what we're going to do just yet. So we're going to try to avoid that. But, you know, the volume that we've Seeing accelerate in the spring has continued, and so we're happy about where we are right now.

Okay. And then just on pricing, I know we started to feel some of the Medicare hit this quarter. It'll be a little bit more. I guess we'll see a little another step down, I guess, right, carrying Q2. That's right. Hopefully things should sort of, I think maybe a little easing even Q3, right, and everything. Then we should be hopefully relatively flat-ish. for this year. How about just on the private side, any work with private insurance, trying to maybe capture better rates than you're getting on the government side? Clearly, if you look across industries, most rates and reimbursements are going way up. So do some of your private insurance providers get that, and they may be easier to negotiate with? I know nothing's ever easy, but...

Yeah, I wouldn't say it's an easy negotiation, that's for sure. But we are working hard on that, Larry. That's something that I've actually taken on as a task with our contracting team, and we are working very hard at that and staffing up to make sure that we have enough resources to really go at these rate negotiations. The large payers have a lot of leverage in these discussions, and so we're working hard to provide some leverage on our side in those negotiations. But, you know, we're hopeful for some increases. We have seen some this year, and we're hopeful to get some more meaningful ones as we go through the year. So that's a long-term play. Yeah, no, absolutely.

In terms of margin, Ty, while you got the mic there, you know, salaries and related costs were obviously, like you said, barely up year over year on a percent of revenue. Your overall gross margin, I know, was skewed downward, and you spoke to the lower mix in industrial services, and obviously you're losing some revenue on the Medicare side. But how come we saw the biggest impact in terms of year-over-year as a percentage of revenue on the sort of rent and, you know, contract labor, other lines? Was that skewed more because of, you know, the mix in industrial services? Thank you for joining us.

were not traveling very much. And so that has begun to increase this year as well. So that's why that particular line. But the first quarter is always typically our lowest margin quarter anyway. And then we had the new IIP business, which is at 18.3%, which is lower than the overall average. But I expect that margin to increase as it has in previous years in the quarters ahead and to be probably more in the low to mid-20s for the rest of the for the rest of the year.

Okay, great. And then just lastly on the workforce industrial prevention business, obviously, you know, great reported growth and, you know, very impressive on the organic side. Don't expect 20% growth to continue, but was there, you know, anything in this quarter, was it just sort of some pent-up demand, you know, you're seeing, you know, things starting to line up more for you? Any thoughts on that, Christopher?

Yeah, I think it's going to get better as the world normalizes. And, you know, while there's still virus out there, I mean, I think people are committed to getting back to life, back to normal. And then I think our teams worked really hard. from lots of different angles on filling open positions on contracts that we had started but didn't have staffing for. And I think that's helped us some, too. And so that's going to continue to be somewhat of a fight, but we've seen some progress in that area. So I think the combination has been everybody's worked really hard and we've gotten some positions filled and we're able to generate some revenue as a result.

Got it. Great, guys. I appreciate all the callers. Thanks so much. Thank you, Larry.

Thank you. Our next question will come from Seth Wissink with Jefferies.

Hey, Seth. Hi, Seth.

Hi. Good morning, everyone. I wanted to just go back a little bit to the volume list that you saw in the quarter. It was quite impressive. And just seeing if you're doing anything different with respect to training around referrals or activating your local networks, maybe putting some marketing back into the market, trying to understand a little bit about kind of that as a success case study.

How about I've got Eric Williams and Graham Reeve on the phone. You guys want to speak to that?

Yeah, so this is Graham. We've got currently about 75 total sales reps out there in the market, and they're serving about 470 of our clinics. That number has increased just slightly, but we have got a big focus on sales and also direct-to-consumer marketing that we're working on. I was going to just make the comment and reiterate what Graham said.

There is a focus here, certainly in terms of marketing and direct-to-consumer, which has been a major difference for us in a lot of markets.

Yeah, we've heard of some of that. So I wanted to double click on that and just understand it's not conventional necessarily to see a lot of direct-to-consumer. So maybe talk to us about what kinds of mediums you're finding to be most successful. Are you trying new things? Do you have good kind of data representation where you can get validation? Just share with us a little bit about that mechanism, direct-to-consumer versus maybe some of your past marketing approaches.

Yes. Go ahead, Chris. Go ahead, Eric. Yeah, I apologize. We're all in different locations. I'm actually on the road this morning, so I apologize for the delay there. There's a lot of social media focus there as well, and tapping into the local market here. So, traditionally, most of our physical therapy business has grown through referral relationships with physicians. We've contracted with some outside organizations that actually have terrific expertise in this area. And the markets where we've really focused on this is Detroit market and the Ohio market, which is kind of leading the rest of the group right now in terms of those direct-to-consumer marketing efforts.

All right. Very helpful. Thank you. Thank you. Our next question will come from Mike Pichuski with Barrington Research. Hey, Mike.

Hi, Mike. Hey, good morning, guys. Hey, so I just want to clarify because I want to make sure I understand. In the rent clinic and other line, that's where you guys include all your PRN therapy hours or costs, is that right?

No, not PRN. That would be, I think, Terry, just contract.

Contract labor.

PRN would still be in the salaries and wages. Anything that's recurring would be in that salaries and wages line, and anything that's abject temporary would be, you know, outside of it.

That's right. Okay. So you guys did a really good job on the salaries and related then. That's terrific.

Well, our partners, our staff, our operations team, you know, together, our recruiters doing, you know, look, it's hard right now, but I do think they did a really good job, and I appreciate the comment.

Given the quarantine, given labor wages, it seems like an outstanding job. All right, so going back, Chris, to your comment on M&A, and I think you said may be as busy as ever in terms of the discussions, which I assume, you know, revolves around the number of discussions you're having. And I'm just curious, are you noticing, you know, just in terms of all that's sort of gone on in the space with labor challenges and, you know, reimbursement challenges, et cetera, you know, are you seeing larger Any deals out there? A lot of smaller deals? Any change in just the types of assets, businesses you're seeing that are open to having a discussion?

It's more, Mike, it's honestly more of both. Larger and, you know, there's always plenty of small ones. But I would characterize our discussions as being more People that we've been in touch with over a long period of time and now they continue to see, maybe for reasons that you pointed out in their markets, Not for them so much, but opportunities that are driven by smaller practitioners maybe wanting to join up a bigger team. I know that's been the case with our Madden and Gilbert acquisition that we did earlier this year. They've gotten a lot of calls and said, hey, you're a great provider and you know the market and what's going on. Let's talk. Most of our discussions are with people that still see a lot of opportunity in the market but want some resources to help them realize it without, you know, meaningfully changing their cultural bend to do it. And so we're just very unique compared to the other acquirers in the market right now with respect to those attributes. And I think it's going to pay dividends for us over time.

And just last quick one. The revenue associated with the injury prevention asset that you guys acquired was a little bit above what I anticipated. Is that business trending above what you guys had internally expected, or is it about in line?

It's actually a little below. It's doing well, and we feel like over a period of time, it's going to do terrific. But a lot of their business has been heavily concentrated in the auto industry, which you know has been heavily affected by the chip shortage and by the shutdown, lockdown in China and other places. But they're fighting their way through, and they're doing a great job. And in aggregate, the combined business of all of it, you know, is doing well, and we expect it to, you know, to continue forward.

Yeah. And their momentum grew as the quarter went along as well. January and February were slower for them than March was much closer to our expectations.

Yeah. Even all the headwinds, I actually expected to be a rough recorder for that business. But anyway, thanks, guys. Well done. Thanks.

Thanks, Mike. Thank you. Our next question will come from Matt LaRue with William Blair.

Good morning. Good morning. Yeah, good morning, everyone. Chris, if I think about productivity sort of visits per day for clinic, I dial back a decade ago, you were around 22. and emerging from COVID, you've now hit record levels of productivity around 29 to 30. If I think about the physical footprint of one of your locations and the number of typical staff clinicians that you employ, what's the long-term growth opportunity there? At what point do you hit a physical space limitation or a clinical staff limitation?

Yeah, well, the clinical staff limitation happens in every size clinic just because you've got to be able to, you know, find more staff if you're growing. And so we deal with that regardless. The physical limitation on the facilities, it's really not an issue. We expand or relocate, you know, somewhere between 12, 15 facilities. 16 facilities a year. A lot of times those are adjacent expansion. Sometimes they're not. Sometimes they're, you know, a separate part of town. and we need a bigger footprint, but it's a significantly small number compared to the majority of our facilities where we can stretch hours, we can open earlier, we can close later. I would venture to say most of our facilities don't probably have the hour spread that even right now I would like them to have, so there's certainly room there. There's room almost everywhere on Saturdays, you know, before you really bump into a physical limitation perspective. So that's not the governing factor for us.

Okay. And speaking of governing factors, I think last quarter you talked about the NOVA being somewhat limited by, you know, staffing as well as the ability to get contracting permits. You mentioned today 12 open year-to-date, so it sounds like Maybe that's gone away, but just in terms of the Denovo pipeline for the balance of the year, do you feel like you have both the staffing and whatever logistics necessary to keep the pace up?

Yeah, yeah, we're going to have a good Denovo year. You know, part of our margin drain first quarter was we had a lot of facilities opening in January with a slow start, and so when you look at the contribution and in income versus revenue was upside down, which happens with de novo facilities. And they'll pick up steam, and we're into a good part of our year right now. But we should have a good de novo year this year, Matt.

Okay, and then last one would just be, you might get mentioned last quarter, sort of a big opportunity for IAP this year was trade shows. They're reopening. I know I've been to a few conferences in the last couple months. I imagine your folks have as well. I guess, what did the trade show schedule look like? Any findings that's kind of helping with traction as you're out there?

Yeah, you know, I'm going to kick this over to Eric. Eric, you're a little bit closer to, you know, at least one of our IEP teams that does a lot with trade shows. I don't know if you know what that looks like right now or not. I'm not sure.

Yeah, we started going to those in the fourth quarter of last year when they started being in person again and had a presence at a couple of shows, and they have a full slate of trade shows they'll be attending throughout 22.

Yeah, thank you.

All right. Thanks, guys. Thanks, man. Thank you.

Thank you. Our next question will come from Mitra Varmjapal with SIDOTI.

Yes, hi, good morning, everyone. Thanks. First, Chris, I was just wondering if you'd maybe give us a sense of the competitive environment as we emerge from the pandemic, if you're seeing maybe some incremental volume as a result of maybe some of your competitors not doing so well.

You know, Mitra, it's hard for me to measure that. Volume's been good. Really good as the weather's improved, as you've heard. Where exactly that comes from, you know, I think for who we're moving Cher from, it's really, I mean, it's really tough for me to say. I think throughout the pandemic, we probably moved Cher from hospitals and small practices. I think that's probably continuing. We have a great team. We didn't. I was going to say we didn't really pull back. We pulled back in 20 a bit on our sales and marketing team just with furloughs, you know, very early on. But we got those folks back pretty quickly and as offices opened up. So that's been back for a long time now. So I just think we have a great team. are really committed to what they do. Our partners who are embedded in these partnerships forever are very connected to these marketplaces. They do a great job as well, and I think compared to just, you know, what I would put air quotes around staff, new grads that, you know, other groups are thrown into facilities because they, you know, they're trying to get 100 de novos open in a year or something like that, and that's tough to do. I mean, that's really hard to do because the relationships aren't there, and it's just a whole different dynamic. So our folks are embedded. They're there for the, you know, long run, and I think that makes a difference

On the IP side, obviously, you did a really nice-sized deal a few months back. And just curious in terms of a couple of things, the valuations you're seeing on that front and any concern that a lot of the service operators are having difficulty staffing, et cetera, if that might maybe provide somewhat of a slowdown or maybe make you a little more cautious as you look to expand in this space.

It doesn't make me more cautious. I think long-term, we really like the business. It does what it's supposed to do. It keeps people working in a really healthy way. It assists, you know, big self-insured companies. Stickiness of that business is very good overall. So we like it. So we're not, you know, we're not looking at the environmental issues, you know, as a long-term, you know... are all inflection points for us in terms of changing our focus. That said, you know, there are tens of thousands of physical therapy clinics across the country and not as many targets on the IEP side. And so we're having good conversations and we'll continue as we have in the past, both in PT and injury prevention. You know, we're selective and we'll continue to, you know, look at what we think are the best long-term opportunities for the company. And then in terms of pricing, it's tough to say. In general, our blended pricing for injury prevention has been less. The last deal we did was, you know, higher than we've done in the past. But I don't know that we have a plot trend that, you know, clearly demonstrates where that is. Pricing on the PT side is as high as it's been in my career, and so it's competitive there, and it's not cheap, but we're getting good things done, and, you know, it's a good time for, if you're a PT company and you're listening, it's, you know, it's a good time to give us a call. So, yeah, it's a healthy market.

Okay, no, that's great. Thanks for taking the questions, and congrats on a nice quarter.

Yeah, thank you, Mitra. Appreciate it.

Thank you. Again, that is star one to ask a question. All right, and we currently have no questions in the queue at this time.

Okay. Well, listen, thank you, everybody. Great questions. Appreciate your participation this morning. We've got continued a lot of work to do, and we appreciate your support. Thank you, and have a great day.

Thank you, ladies and gentlemen. This concludes today's teleconference and we appreciate your participation. You may disconnect at any time.