HMS Holdings Corp
Q3 2012 Earnings Call Transcript

Published: 26 Oct 2012

[Operator:]

Good morning my name is Huey and I will be your conference operator today. At this time I would like to welcome everyone to the HMS Holdings Corporation Third Quarter 2012 Earnings Call. (Operator Instructions). I would now like to turn the call over Jzaneen Lalani for HMS Holdings. Ms. Lalani, you may begin.

[Jzaneen Lalani:]

Good morning and thank you for joining us today for HMS Holdings third quarter earnings call. As you know we distribute our earnings release through website hms.com under the investors relations tab. Under that tab you will also find a supplementary slide to the company, our call today. This call is also been webcast. Please click on events and presentations under the investor relations tab to access the webcast. We will make a replay of the call available on our website later today. Before I turn the call over to Bill let me remind you that some of the information presented today regarding the company’s future expectations, plans and prospects are considered forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and actual events may differ materially from those expectations. We refer you to the company’s filings with the securities and exchange commission including our annual report on Form-10K and our quarterly reports on Form-10Q which identify important risk factors that could cause actual results to differ materially from those contained in the company’s projections or forward-looking statements. All information on this call is as of today October 26, 2012 and the company disclaims any intent or obligation to update any forward-looking statements as result of developments occurring after today’s call. During this call we will also be referring to several non-GAAP measures. The press release issued this morning includes a reconciliation of these measures to GAAP measures and is available under the investor relations tab on our website hms.com. With that I will now turn the call over to Bill.

[Bill Lucia:]

Thank you Jzaneen. Good morning everyone and thank you for joining our third quarter 2012 earnings call. I’m Bill Lucia, President and CEO of HMS Holdings. I will be hosting this call this morning along with Walter Hosp, our CFO and Maria Perrin, our Chief Business Officer. Since it has only been a few weeks since we last spoke to you, we will use today’s call to report our third quarter results and provide you with a more complete picture of our 2013 guidance and expected growth opportunities. I will now turn the call over to Walter for few of our financials. Walter.

[Walter Hosp:]

Thank you Bill and good morning everyone. In the third quarter HMS has coordination of benefits, product line continue to be negatively impacted by processing delays associated with the new HIPAA 5010 and the D.0 Transactions and other issues that Bill Lucia will elaborate on shortly. All of the areas of our business experienced revenue results in the quarter consistent with our latest expectations. Total revenues for the third quarter of 2012 increased 22.6% year-over-year to 113.2 million. Adjusting for the acquisition of HDI and the negative growth in our federal business total revenue growth in the quarter was a negative 5.4%. Our coordination of benefits revenues in the quarter decreased 9.2% year-over-year while program integrity revenues without HDI or our federal business grew 13.5% year-over-year. From a market perspective revenue in Medicaid which includes state government and Medicaid managed care clients decreased 4.2% year-over-year. Revenue in our federal business was down approximately 32% year-over-year as expected primarily caused by our decision to terminate certain CMS contracts that we conflict with HDI’s Medicare of that contract. HDI revenues for the quarter were 27.9 million with a year-over-year growth of estimated at approximately 65%. Year-to-date revenues for HDI are approximately 75 million and are in-line with our $100 million projection for 2012. Revenue for the first nine months of 2012 increased 28.9% year-over-year to $340.6 million. Excluding HDI revenue for the first nine months of the year was 265.4 million. Compensation expense related to the cost of services was 40.2 million for the quarter. Excluding HDI, total compensation related to cost of services for the quarter was 31.5 million a decrease of 0.3 million or 0.8% compared to the 31.8 million last year. As a percentage of revenue this expense was 35.5% versus 34.4% in the prior year. Compensation expense related to the cost of services for the first nine months of 2012 increased 26.3% year-over-year to a $119.5 million. This includes 23.9 million of expense associated with the acquisition of HDI. Excluding HDI compensation expense related to the cost of services for the first nine months of the year was $95.6 million. The third quarter had an average non-SG&A head count of 2274 employees, a 41.4% increase of 666 employees compared to the prior period. This is primarily result of the HDI acquisition. The average total company head count including SG&A employees was 2492 employees an increase of 760 employees or 43.9% above the third quarter of 2011. Off that increase 591 employees were attributable to HDI. Amortization of intangibles associated with acquisitions was 8.1 million for the quarter, an increase of 6.5 million year-over-year primarily due to the HDI acquisition. For the first nine months of 2012 amortization of intangibles associated with acquisitions increased nearly 400% year-over-year to 24.4 million. Income taxes were 6.1 million for the current quarter compared to 9.8 million for the same quarter last year. The effective tax rate for the quarter was 36.8% versus 40.5% last year. Our full year effective tax rate estimate for 2012 is approximately 39.5%. Net income for the quarter was 10.5 million versus 14.4 million for the same period in 2011. Net income for the first nine months of 2012 was 30.5 million versus 36.7 million for the same period in 2011. Fully diluted weighted average common shares outstanding for the third quarter was $88.7 million shares, fully diluted gap net income per share was $0.12 versus $0.17 for the same period last year. Adjusted EPS was $0.20 for the quarter versus $0.19 in the prior year up 5.3%. Based on our results to-date and assuming the carriers will resume processing of our claims we are maintaining our guidance range for the revenue of $480 million to $490 million, $0.55 to $0.60 for GAAP EPS and $0.85 to $0.90 for adjusted EPS. We do expect our 2012 results to come in at the lower end of these ranges. We now turn to the balance sheet and look at our general financial condition at September 30, 2012. Our cash and cash equivalents were a $128 million at the end of September compared to $97 million at the end of last year. Cash on hand as of yesterday was approximately a $137 million. The number of day sales outstanding or DSOs at the end of the quarter was 92 days compared to the 102 days at the end of 2011. All other balance sheet changes from year end 2011 are related to the regular working capital requirements of a growing business, depreciation of property, plant and equipment. Debt repayments on our term loans and various adjustments from tax and acquisition related assets and liabilities. Looking at the statement of cash flows, cash provided by operations was $54.9 million for nine months of 2012, an increase of 5.8 million from the 49.1 million reported in the same period of the prior year. This result is after adding back substantial amortization of intangibles and capitalize software related to the HDI acquisition. Cash used in investing activities was 21.7 million for the first nine months of 2012, an increase of $2 million over prior year period relating primarily to purchases of property and equipment supporting our data center relocation from New York to Texas. Cash used in financing activities was $2.3 million for the first nine months of 2012 whereas last year 16.3 million was provided by financing activities. The change was primarily attributed of purchases of treasury stock and the repayment of quarterly principal payments on our term loan. We anticipate that our existing cash balances and funds generated by operations will be sufficient to support our cash needs. We also continue to have a $100 million available under our revolving credit facility which we do not anticipate utilizing this year. I will now turn the call over to Bill.

[Bill Lucia:]

Thank you Walter. Before I move to new business, let me talk a little bit about the under performance in our Medicaid coordination about this area and the impact on this quarter. There are several external factors that have impacted Medicaid COB (ph). As we have mentioned before these includes the slower than anticipated growth in Medicaid expenditures, processing delays related to the migration of lives from free for service to manage care and most importantly certain insurance careers, inability to support the new HIPAA mandated claim transaction. So let’s talk about that for a minute. As we said in previous quarters, health insurance carriers and claim processors including some of the nation’s largest PDMs continue to struggle with the ability to process the new HIPAA 5010 and the D.0 Transactions. While these carriers worked to comply with the new transaction formats, they prioritized that work for claims submitted by their providers. However HMS submits Medicaid reclamation claims on behalf of Medicaid and other government payers. Our non-standard transactions have not been a priority for many carriers. We’re working closely with them to reduce this very large backlog. Bottom line is that we have 100s of millions of dollars’ worth of claims that remain unprocessed and will not all of these claims will get paid; this backlog is enough to have a significant impact on us. I do caution that our progress on this front is measured in months not weeks. We continue to make progress but the issues are very complex. We also know that these carriers won't go on forever not processing our claims and at some point although we wrestle somewhat with the timing. The issue will be resolved and the claims will be processed normally. This has been the most significant factor negatively impacting our coordination of benefits results this year. I will now move on to our new business for the quarter. We recently announced that HMS was awarded a Medicare coordination of benefits contract valued at up to 297 million over the full five year term. As expected the incumbent GHI has filed a bid protest and the GAO has until late January to make a determination on the protest. As is typical in a procurement of this size, particularly within an incumbent and place to continue to perform the work, CMS has issued a stop work order. Up until at that point we have been working steadily with CMS and our subcontractors and as a result are very well positioned to implement this contract once we receive the go-ahead from CMS. We will update you when the determination has been made but we’re confident about the outcome because we were selected based on best value to the government. Moving to the state government markets, five additional states have issued an intend to award a Medicaid RAC contract to HMS. Arkansas, North Carolina, Texas, West Virginia and Wisconsin. That brings the number of states awarding us a RAC contract 230 and we are prime contractor in 27 of those states. This is by far the largest share of the market, we are up and running in a number of these contracts and working with our clients to implement the balance. Continuing with state government, we also secured the reprocurements of our coordination of benefits work in the States of Delaware and Indiana and for the chip program in Iowa. We are actively working with Maximus to implement our data matching services for Illinois Medicaid enhanced eligibility verification system that we previously announced. It's interesting to know that CMS estimates that the error rate in Medicaid eligibility is about 6% therefore we expect to see more states seeking similar eligibility related solutions as Medicaid program can no longer withstand the financial burden on enrolling ineligible members. And finally in Wisconsin we were awarded a broad recovery services contract that enables us to expand our cost containment services in the state. Moving to our managed care market, I’m very pleased to announce that HMS has been awarded a contract by Humana for subrogation services for 50% of Humana’s membership. This scope covers approximately 2.9 million commercial Medicaid and Medicare allowance. Humana staff will begin using HMS proprietary subrogation case management system on a software as a service basis. Humana and HMS are currently working through the contract and implementation process. HMS has been providing other cost containment solutions to Humana since 2007 and we are looking forward to this expanded relationship. In this quarter we also signed an agreement with Dell USA to perform coordination of benefit services including subrogation case management and recovery. For Dell national business operations. This is an excellent opportunity for HMS because it gives us a vehicle and provide a wide range of over payment recovery services to Dell’s clients nationwide. We are in the process of implementing our first client under this contract well across Blue Shield of Blue Shield of Rhode Island. These two contracts demonstrate HMS ability to adopt and sell our products and services to commercial health plans. We also want a contract with independent health association in upstate New York to provide pharmacy audit services for all their lines of business including commercial. Now before I discuss our 2013 guidance let’s talk about some of the major considerations that influence our 2013 plan. First is the presidential election which is less than two weeks away. Clearly an Obama win would preserve the Affordable Care Act. Under Romney administration, there just maybe a period of uncertainty related to healthcare reform and states in the federal government could then slowdown implementation efforts. Second is the reprocurement of our Medicare RAC contract which expires in February of 2014. CMS is planning an early reprocurement to assure ample time for resolution of process. While HDI has a track record as the most effective Medicare RAC and we are confident of a successful outcome, our plan does take into consideration the transition and implementation timeframe related to a new contract award. Third is the Medicare, coordination of benefits contract and the timing of the ramp-up. As with any large contracts there are many, many variables related to implementation that we must take into consideration. And lastly as we have mentioned throughout this year, the Medicaid market remains in flux, the rate of growth for the Medicaid program is no longer as predictable as it was in the past and this is further complicated by the continued shift of life from fee for service to managed care and the related operational disruptions. For all of these reasons we feel compelled project a fairly broad range of financial outcomes for 2013. So now let’s turn to our guidance. In our call earlier this month we announced preliminary 2013 revenue guidance in order to put the announcement of the Medicare coordination of benefits contract award in context to you. Now that we have finalized our budget for the next year we can provide you with our detailed full year guidance for 2013. We expect revenue in the range of 570 million to 600 million. GAAP EPS in the range of $0.63 to $0.70 and adjusted EPS in the range of $0.95 to a $1.02. Based on the mid-point of our revenue guidance this translates into revenue growth of about 21% year-over-year. Now 2013 earnings guidance is based upon the additional following assumptions. Operating margins of approximately 20%, a full year tax rate of 39.5%, depreciation and amortization of approximately 50 million, stock compensation expense of about 17.5 million and fully diluted average shares outstanding of 91.4 million. In closing, we take a look at where we stand today and why we’re positioned for continued growth in revenue and profitability. Despite the processing issues that have resulted in disappointing 2012 financial result to-date. First, we have become over the last year the nation’s leading RAC vendor for both Medicaid and Medicare programs and both have quite a long runway for growth. Second, we are now the leader in coordination of benefits for both Medicaid and Medicare. Our competitive position in COB has never been stronger. Third, we’re steadily expanding our footprint in the large commercial insurance market, with our existing product portfolio and finally we are innovating to provide the cost containment tools in evolving market healthcare market so obviously meets with new offerings like our eligibility and exchange products. We see these achievements and their progress over just the past 12 months as evident that we have developed into a company that can adopt, respond and grow despite the volatility of the healthcare markets and while Medicaid growth may continue to be unpredictable until there is more clarity on the ACA. We have diversified in both product and market to establish a platform for continued growth. This now concludes the formal portion of our call; we will open up the call for your questions.

[Operator:]

(Operator Instructions). Our first question comes from Ryan Daniels with William Blair. Please go ahead. Your line is open.

[Ryan Daniels:]

Let me ask my first one just on the 2012 outlook, it sounds like Walter based on your comments I believe that you’re still assuming that the claims, processing issue in the pent up claims you’re going to come through this year so if that does not happen, I’m curious if that would actually push you outside of your guidance range. Any color there?

[Walter Hosp:]

Well clearly we are making progress on this and that we’re maintaining our guidance built up in that is making progress on this. We could never say that we’re absolutely certain that everything is going to come in so there is always the chance of coming outside of our range but obviously we have thought about that and that’s why we are maintaining our guidance.

[Bill Lucia:]

Ryan this is Bill let me add to that been an ex-insurance guy, insurance companies and their employer clients look at claims on a calendar basis. And so these insurance companies many of them have said hey we don’t want the claims so we can process them. Actually have to understand their potential liability, everything called IBNR so they need to understand what claims volumes is coming in and their employer clients are surely want to make sure that they understand their health plan risk by the end of the calendar year. So that gives us the lot more confidence that they will accept and process these claims by the end of the year. I assure we are up against the lot of these guys.

[Ryan Daniels:]

Okay that’s helpful color and then I guess my follow-up would be on the Medicare RAC you made some commentary regarding your 13 planning considerations about the early reprocurement there. Can you talk a little bit about what impact you’re modeling in and I guess more specifically the question would be you know is there assumptions that something could change not with you losing business but maybe moving regions and therefore having an air pocket as you transition regions or kind of what’s underlying your commentary there?

[Bill Lucia:]

Ryan this is Bill that’s a good question; they know the we go into procurement with exerting confidence. I mean from a return to the federal government, we really have been the best vendor. The issue really relies around, we have not yet seen the procurement so we don’t know it's a form of procurement will change, if they will broaden region, if they look at the program differently, if they will consider other funding options for appeals management because HDI is very likely the most advanced appeals management vendor that they have. All that said yes if we shift region so we are given a different region in many ways it's a real positive because all the other region have a higher per capita Medicare expenditure which means our revenue would grow. The channels we are shifting region is we would be building interfaces to do Medicaid administrative contractors. So there is ramp up time, but there is also ramp down time on the old contracts. So we just wanted to be we felt we will be prudent and be conservative about the outlook from that perspective.

[Walter Hosp:]

And so numerically we are building in growth for HDI in the low 20% range.

[Operator:]

Thank you sir. Our next question comes from the line of Scott Green with Bank of America Merrill Lynch. Please go ahead. Your line is open.

[Scott Green:]

So I guess first in the first quarter I think you said HIPAA related issues, those were around 4 million to 5 million revenue impact, second quarter an additional 1 to 2 and now third quarter revenue is down like $11 million sequentially so given the fact that the mandated implementation was June 30, I’m wondering how it's getting progressively worse since then.

[Bill Lucia:]

Let me answer that it's not that it's getting progressively worst, it's that it's not that the resolution, the resolution by certain carriers have not been implemented yet. So we think this issue and this depends on timing is about a $6 million to $12 million issue. Now that’s working down between PBMs, large insurance carriers, small insurance carriers and then some self-insured plans. Also wrapped up in this year though it's not as big, is some of the confusion around the shifts from deeper service to managed care and the delegation of coordination of benefits responsibility across either the state or the plan and that’s actually another few millions of dollars that we are working through with states and managed care plans. So in that sense this whole issue of aside from Medicaid lower expenditures this whole issue of transition and new claim formats I would also throw in system conversions, our clients have experienced and this flux in the program is anywhere between $6 million and $16 million that we are working through the balance of the year.

[Scott Green:]

I will turn up with a follow-up offline on the numbers more of it, so when you’re submitting these claims to the insurance companies, are they allowed by law to ignore them, I mean when you say you don’t think you’re going to collect on all of them why would that not be the case.

[Bill Lucia:]

Well let me pull a little color on why we don’t think we will collect all of them, surely some will be derived. Morbid link services to some of them that Medicaid covers but a commercial plan would not. So that’s what we mean by (inaudible) behave but you ask a very interesting question. When a provider is submitting claims to a health insurance payer there are very strict prompt (inaudible) state by state as you know insurance is regulated by the state. Those do not unequivocally apply to third party claims coming from Medicaid or Medicaid managed care plans and every state laws are very different about that. So in many cases we don’t have the law behind us and we don’t have the department of insurance behind us as a hammer. What we do have is the Medicaid agency and we do have relationships that we have to build with these carriers in order for them to understand the impact it's having on the Medicaid programs. As I said it's a very complex issue and there are many stakeholders in it but the laws that you would or the rules you would understand that a hospital would get their claims processed within 60 days a clean claim like in the State of Texas laws that would not apply to Medicaid reclamation.

[Scott Green:]

Okay so you’re saying that insurance companies can basically say this is not a priority for us to pay this liability and you have to work with the Medicaid agency and keep hammering at their doors essentially to get them to pay.

[Bill Lucia:]

I will tell you that Medicaid has certain restrictions and rules based on how quick identifications of third party liability have to be pursued. So we have to work with these carriers to get those claims in front of them whether they want them or not. So they may not want a 5010 transaction because they can’t support it, they will not take all 4010 transaction but they are going to have to take a 100,000 boxes of paper because those claims has to be submitted to the carrier. So there is a lot again, a lot of very different complex challenges and then I will mention something else to answer the beginning question which is to 2 to 4 million and then it became this, when we reported to you and maybe we probably shouldn’t it's been specific when we reported to you we had commitments from certain carriers that they would go alive and they went alive and their systems failed. So that sort of the challenge we are going through this entire year is testing, retesting, not getting electronic claims to them, forcing them to pay which forces backlog. It's not all the carriers in the nation but it's 30 and it's some of the major carriers. So it is a significant challenge.

[Scott Green:]

All right and lastly what specifically happened in the last three weeks that caused you to lower your 2013 guidance by $25 million at the mid-point on revenues.

[Bill Lucia:]

I mean the factors we talked about were really the things that made us become more conservative. Remember when we talked on October 3, we set well this is our preliminary outlook and we really felt that we needed to give you some outlook at that time because we had this almost $300 million contract to put into context. So we decided that and every year I think you guys know we go through our third quarter, we improve our budgets at the end of quarter and we have up until the last couple of days then fine tuning our 2013 plans. So primarily was the fact that was preliminary and then I think earlier on this call we went through the types of things that we think are potential outliners and that we just don’t have as much clarity about. And I will tell you the Medicaid market continues to be in flux and last year we were betting on a 4% - 5% growth rate, we got less than 2% while it's expected to grow next year we are not confident that the numbers we are looking at will tell us that. So we are being cautiously conservative.

[Operator:]

Thank you sir. Next question comes from the line of Bret Jones with Oppenheimer. Please go ahead. Your line is open.

[Rohit Vanjani:]

This is Rohit in for Bret, Walter you talked in the past about these claims for Medicare RAC that you’re looking at different scenarios for a certain arena of claims. I think right now you’re primarily looking in the inpatient or hospital arena and do you think that you fairly well exhausted this scenarios in the hospital space or is there any way to gauge how far along you’re in that process before you have to move to another arena like S&F or (inaudible) healthcare or whatever.

[Bill Lucia:]

We have not exhausted that space, the most limiting factor that we have as a RAC vendor is the fact that we have a record limit of the number of additional documentation request we can expect from hospitals, so those are basically the medical records and while that’s 2% it's a very comparable to formula based on the hospitals billing volumes. We have enough scenarios, over payments to pursue further audits of hospitals but it's really CMS gating that. With that said we are developing scenarios and are in test with CSM on other provider types.

[Rohit Vanjani:]

Okay so when you’re talking about the HDI component of guidance that change, there is nothing really changed in a growth aspect it's just the fact that you’re (inaudible) with regions and they are may be this delay.

[Bill Lucia:]

Yes it's really related to reprocurement and any delays with that and/or new contract award implementation.

[Rohit Vanjani:]

So if you have to switch regions or I mean is it the same types of claims that you would be looking at in the other region or how do you know how people have done those claims or how far they are along in that process.

[Bill Lucia:]

It's the exact same types of claims and providers, the only thing we can say is if our effective rate is far beyond that of the other RAC vendors based on per capita recoveries or findings we believe that we will have a significant uptick. So we did get another region, I’m not saying we would but if we did get a different region we think that the revenue would grow potentially faster.

[Rohit Vanjani:]

Okay and then my last question is for the ACI revenues, can you quantify how much of the revenues are kind of from looking at current or recent claims versus that look back period of three years that you’re allowed?

[Bill Lucia:]

I don’t really have that data in front of me but we usually as we have gone through the pool of claims we are usually looking at the oldest first moving to more current. So since we have been doing this for a number of years that’s really the process we would take but you have to understand that when we look at a claim we are also looking at that longitudinal behavior of that provider and the number of times they have up coded and then there is a lot more in the (inaudible) that I don’t want to sound a problem but so there could be claims that are two years old that we are now based on our algorithms finding that they should be identified and potentially recovered.

[Operator:]

Thank you. And we do have time for one final question. Our final question for today will come from the line of Jamie Stockton with Wells Fargo. Please go ahead. Your line is open.

[Jamie Stockton:]

I guess Walter, Bill whoever wants to take it the first question is specifically for the new Medicare coordination of benefits contract I think you said initially when you gave your 2013 outlook, in early October that you thought it would 50 million next year. Since that’s maybe the biggest moving part in 2013, can you give us a feel for what you’re assuming at the mid-point, have your new 2013 guidance.

[Bill Lucia:]

Yes so in the 2013 number it's still $50 million, it's a program that will, if we take into account the protest and then starting after that that would begin in around February and it's because it's a cost plus contract as soon as we start ramping up we can also start submitting invoices and recording revenue related to it.

[Jamie Stockton:]

Okay and then maybe the next question is with Medicaid spending next year what specific rate are you guys assuming as far as growth is concerned.

[Maria Perrin:]

This is Maria Perrin, we are assuming a very conservative number around 3% that’s the most conservative outlook we have seen from the market, it comes from the National Governors Association and the National Association of State Budget Officers. CMS projections and other projections are higher but we are sticking with the 3%.

[Jamie Stockton:]

All right and then maybe one more question as far as the Medicare RAC program is concerned maybe a two part question, what do you think the probability is that you do change regions and then B, have you actually seen an expansion of your Part D region I’m sorry region D region recently.

[Bill Lucia:]

First we really can’t speculate on that, I mean the procurement study been out. So it will really depend on the form of the procurement, what you get the bid on. CMS preferred approach around that so we will once we put the proposal in we will have a little more information but it's really too soon to speculate and then in terms of I believe your second question what if we seen about the volumes in the region.

[Jamie Stockton:]

No I saw something the other day that implied that maybe CMS had changed since states as far as what region they were included in for the Medicare RAC program. I think maybe again in Indiana.

[Bill Lucia:]

Yes and another that’s impacted us our region hasn’t changed, we obviously have expanded to do the prepay pilot that CMS has working through. So that’s we are viewing the records on a rapid basis prior to the Max (ph) actually paying the claims. Interestingly enough we have been able to start selling that service line into the commercial market which sort of follows Medicare transaction. And then as I mentioned in the call we’re looking at other provider types and service types that we have proposal in front of CMS for to begin audit. So it will continue to be expansion of that RAC service.

[Operator:]

Thank you. And again this does conclude our time for questions. I would like to turn the program back over to Bill Lucia for any additional or closing remarks.

[Bill Lucia:]

Thank you. I would like to thank you for joining our call today. We are looking forward to speaking with you on the New Year and reporting on our fourth quarter and full year 2012 results in February. Thank you.

[Operator:]

Thank you. Again ladies and gentlemen this does conclude today’s conference. Thank you for your participation and have a wonderful day. Attendees you may disconnect at this time.