Inotiv, Inc. Price & Performance (NOTV)

Please refer to the company's SEC filings for further guidance on this matter including risks and uncertainties that could cause results to differ from forward looking statements. Management will also discuss certain non GAAP financial measures in an effort to provide additional information for our investors. Definitions of these non GAAP measures and reconciliations to the most comparable measures are included in the company's earnings release, which has been posted to the Investors section of the company's website www.innitiv.com, and is also available in the Form eight ks filed with the Securities and Exchange Commission. If you haven't obtained a copy of today's press release yet, you can do so by going to the Investors section of Innitiv's website. Joining us from the company this afternoon are Bob Leisure's President and Chief Executive Officer and Beth Taylor, Chief Financial Officer. John Sagar, Chief Strategy Officer will join us for the question and answer portion of the call. Bob will begin with some opening remarks, after which, Bev will present a summary of the company's financial results, for our first fiscal quarter of twenty twenty five and then we'll open the call for questions. It is now my pleasure to turn the call over to Bob Leisure, CEO Bob, please go ahead.

Thank you, Steve, and good afternoon to everyone joining our call today. During the first quarter, we moved forward with many of our objectives, which included improving the company's liquidity position, reducing revenue volatility, reduced our continuing to focus on client satisfaction and client relationships and continued integration efforts as one company.

I'll spend a few minutes on our first quarter results and highlights. To enhance liquidity, we our recent equity offering provided net proceeds of $27,500,000 We are very pleased with the investor interest in that company this offered. The additional equity will help reduce liquidity risk going forward allow us to continue to make long term strategic decisions provide additional stability. To reduce RMS volatility, we have expanded our NHP client base for calendar 2025 and pre sold much of our NHP inventory which we anticipate should deliver more consistent revenue streams. In addition, we also expect to continue to see an Services in calendar twenty twenty five as we did in 2024, and we continue to invest in our HP facilities in order to maintain We continue to make progress integrating and improving our North American transportation distribution systems systems which we brought in house about a year ago. We believe this has helped to improve the client experience as well as our efficiency.

Last quarter, we announced that we continue our site optimization program North America for the RMS business, which included closing three additional sites of which two are owned and one is leased while expanding an existing lease location. We continue to execute on this initiative This expansion is expected to be approximately $5,000,000 investment and we intend to use 10 improvement dollars along with proceeds from the sale of the two owned facilities to pay for this consolidation project. Once completed, we expect to to be which we expect to be at the end of fiscal twenty twenty six, we estimate approximately $4,000,000 to $5,000,000 a year in cost savings from reduced repair and maintenance expense on facilities lower cost of production along with improved service for clients while production capacity is expected to be unchanged. For the first quarter, fiscal twenty twenty five, total revenue was 119,900,000.0 compared to $135,500,000 in the first quarter of fiscal twenty twenty four representing a decrease of $15,600,000 or 11.5% This decrease was mainly due to a $13,590,000 reduction in NHP revenue which was driven primarily by pricing. The lower pricing and some lingering high cost inventory again negatively impacted NHP margins during Q1 of fiscal twenty twenty five.

In Q2 of fiscal twenty twenty five, we expect to see these margins improve compared to Q4 fiscal year twenty twenty four and Q1 fiscal year twenty twenty five. DSA revenue decreased slightly from $44,700,000 in Q1 of fiscal twenty twenty four to $42,800,000 in Q1 of fiscal twenty twenty five. While DSA's operating margins have remained stable, the decrease in DSA revenue was mainly due to a decline in our Discovery Services revenue We had a strong quarter for new DSA awards, which was partially offset by cancellations. We saw a continued [indiscernible] Our strong awards for our new safety assessment services that were added over the last two years And we saw a 16% increase in Discovery Service awards in Q1 of fiscal twenty twenty five, versus Q1 of fiscal twenty twenty four. This was the first quarter of reported growth we saw for Discovery Service in the last two years. For the trailing twelve months, Discovery Service awards are still down 17% compared to the prior twelve month period. So it's still too early to say whether this is truly a trend. But it is encouraging and we believe some of the changes we've made our Discovery Services sales team and marketing team and their sales approach a year ago are beginning to have an important impact.

Now let me provide some comments on what we are seeing in the market today and some forward looking thoughts. On our different business segments. Going into calendar year 2025, we will continue to focus on process optimization, innovation, ceding client expectations. We expect to see year over year revenue and adjusted EBITDA growth each quarter for the remainder of fiscal twenty twenty five as well as reduced NHP revenue volatility as compared to fiscal twenty twenty four. In the DSA business, we are our broad portfolio of products and services and attracting new clients to gain market share. We believe the additional investments we made in our sales team in 2024 and planned investments for 2025 will continue to benefit us in fiscal twenty twenty five and 'twenty six. In the RMS segment, we've added new clients and based on our NHP presales, purchase orders and demand for quality management services we are optimistic about our goals for increasing RMS revenue in calendar twenty twenty five. Overall, we remain confident going into 2025. We're also preparing for 2026 and 2027. The geopolitical and market condition risk and uncertainties remain with us as they do it for all companies. However, we are committed to building a business that will create value for our clients, employees and our shareholders and look forward to our future.

I will now turn the call over to Beth who will provide more detailed synopsis of Enite's results for the quarter.

Thank you, Bob, and good afternoon, everyone. For the first quarter of fiscal twenty twenty five, total revenue was $119,900,000 compared to $135,500,000 in the first quarter of fiscal twenty twenty four. This was a $15,600,000 or 11.5% reduction in sales from the prior year's quarter And as Bob said earlier, most of this reduction was a result of reduced NHT pricing in The U. S. Within our RMS segment. RMS revenue for the first quarter of fiscal twenty twenty five decreased $13,700,000 or 15.1% compared to Q1 of fiscal twenty twenty four. As discussed earlier, the decrease in ARMS revenue was due to the lower NHP related product and service revenue, mainly as a result of a lower average selling price for NHPs in The U. S. We sold approximately the same number of NHPs in fiscal Q1 twenty twenty five compared to fiscal Q1 of twenty twenty four However, the NHP average selling price In The U. S, in Q1 of fiscal twenty twenty five, was approximately 30.3% lower than in Q1 of fiscal twenty twenty four and one point six percent lower than that in Q4 of fiscal twenty twenty four. We have indicated on previous conference calls that NHP sell prices declined from the highest we saw in Q4 of fiscal twenty twenty three and the first half of fiscal twenty twenty four.

The lower pricing and higher cost inventory again is during Q1 of fiscal twenty twenty five and we believe RMS margins for the remainder of calendar 2025 should improve from here. TSA revenue in the fiscal twenty twenty five first quarter was $42,800,000 compared to $44,700,000 in Q1 of fiscal twenty twenty four. The quarter over quarter decrease in GSA revenue was primarily driven by a decrease in Discovery Services revenue. Overall, net new DSA orders this quarter were $42,300,000 versus last quarter and $63,800,000 in Q1 of fiscal twenty twenty four. The conversion rate in the first quarter of this slightly up from 32.6% in the prior year period. The DSA cancellations and negative change orders in the first quarter of fiscal twenty twenty five were approximately 54% higher compared to the prior year period which had the lowest cancellations in the last two years. Cancellations in the trailing twelve month period were approximately 1% less than the prior period. So overall, our operating loss Or decreases in restructuring costs, transportation costs, and costs related to sites closed in connection with our optimization plan. There were slightly lower DSA sales, which resulted in relatively flat DSA operating margins. Consolidated net loss attributable to common shareholders in the first quarter of fiscal twenty twenty five totaled $27,600,000 or $81.02 loss per diluted share.

This compared to consolidated net loss attributable to common shareholders of $15,400,000 or $60 of loss per diluted share in the first quarter of fiscal twenty twenty four. For the first quarter of twenty twenty five, adjusted $600,000 or 7.1% of total revenue For the first fiscal quarter of twenty twenty four. Non GAAP operating income for our DSA segment in the first quarter was $7,100,000 or 5.9% of total revenue compared to $6,900,000 or 5.1% of total revenue in the last fiscal year's As we continue to fill recently added capacity, we believe we will see margin improvement through operating leverage. The net book to bill ratio for DSA in the first quarter of fiscal twenty twenty five was 1.01 times to one Our trailing twelve month book to bill was 0.87 times two one. GSA backlog was $130,400,000 at 12/31/2024, compared to $129,900,000 at 09/30/2024. And $152,300,000 at December 31, 2023. In our RMS segment, non GAAP operating income in the first quarter of fiscal twenty twenty five was $9,400,000 or 7.9% of total revenue compared to $16,900,000 or 12.5% of total revenue in the first quarter of fiscal twenty twenty four. Interest expense in Q1 of to $13,800,000 from $11,400,000 in the first fiscal quarter of twenty twenty four, due to an increase in interest rates interest associated with the second lien Inotiv issued in September 2024 and periodic drills on our revolving credit facility.

Our balance sheet as of December 31, 2024 included $38,000,000 in cash and cash equivalents as compared to $21,400,000 on 09/30/2024. Our quarter end cash balance includes the net proceeds from our recent equity offering Total debt net of debt issuance costs as of December 31, 2024 was $396,000,000 compared to $393,300,000 on 09/30/2024, This includes $111,600,000 of convertible notes as of 12/31/2024 and our second lien note of $19,200,000 Net cash used in operations for the three months ended December 31, 2024 was $4,500,000 compared to cash used in operations of $6,500,000 in the three months ended three months ended December 3138, compared to a net loss of $1,300,000 in the three months ended December 3138, compared to a net loss of $1,300,000 in the three months ended December 3138, compared to a net loss of $1,300,000 in the three months ended December 3137, 2023. In October of twenty twenty four, we entered into a third amendment with the seller of OIBRC and extended the payable to 01/20/2026. Capital expenditures in the first quarter of fiscal twenty twenty five were $4,500,000 or approximately 3.7% of total revenue. The first quarter of fiscal twenty twenty four capital expenditures were $5,600,000 or 4.1% of revenue.

We expect to spend less than 4% of revenue for CapEx in fiscal With respect to guidance, as you know, we withdrew our fiscal 2024 financial guidance as we reported Q2 twenty twenty four results. While we continue to feel good about the progress we have made in recent quarters, we are not providing fiscal twenty twenty five guidance at this time. As we have stated previously, hope to provide guidance once we have greater clarity on the market and client demand. Needless to say, management has developed a comprehensive fiscal twenty twenty five annual operating plan designed to continue to optimize our capital allocation and expense base and improve our operating results as discussed earlier. [indiscernible] compliance with the updated covenants under our latest amendment to the credit agreement entered into in September 2024. And with that financial overview, we will turn the call over to our operator for Thank you. We'll go first to Frank Takanin with Lake Street Capital Markets. Great, Mamba. Thanks for taking the questions. Was hoping to start with maybe a little bit more of an update around NHP's was hoping to kind of ask two parts to it. One, have we worked through some of the higher cost NHPs throughout the first quarter or do we still have some of that to work through the remainder of the year?

And then two, just any update from ordering patterns from customers would be good to hear as well. Thanks. Well, going into the calendar '25, we have worked through all the higher cost and expense fees at this point. So I think that Edwin has passed. As far as the ordering patterns, we've significantly changed. We said we would do last February. We significantly changed our focus this year. Last February, we went into the year without any real commitment to where we're selling most on the open market is still very volatile. And then people they want at that point, I'm not sure whether you want to lock into Going into this year, As prices normalized a little bit and stayed stable over the last two or three quarters, We do have more solid commitments for this year going into this year. We do know what people's expectations are.

We can deliver it. And then maybe a week or two, we'll work with our customers. What we also do now is we make some of them board so they can board them with us. So that gives us the ability to be a lot less volatile than we have. So I think we'll be a little more consistent. We can still see as we have in prior years things slip in the last between the quarters If large shipments may take place slip from one a couple of weeks or for one month for the next which can shift some things through quarters. But for the most part, as I look at our cash flow and our stability and our volatility, we're going to be much less And I think we're in a much better position going into this year. I think it'll be as significant as we get into Q2 Q3 and Q4 going into this year. Okay, that's helpful. And then I was hoping I could ask one about the sites development I know it's a little bit challenging to predict exactly how it's going to go, but with the contemplation of Cambodia, NHP is being no longer being able to be exported worldwide, how could that impact your dynamic?

I realize it was pushed to the following year, but clearly there's some skepticism around that supply base. So maybe just talk through theoretically how that could impact the global NHP's supplydemand dynamic Well, initially Cambodia is an important part of the global supply base.

They're still exporting out of the Ambosia think in the range of $9,000 a year.

So if you take that out of the global supply base, that puts a lot of more pressure on what is available. From the other existing supply bases. They did have the signings meeting this week. I think they pushed that decision off. They got revisit again probably in November of twenty twenty five. But right now that's We were ready for said we prepared for either event. We have a lot of contracts starting for this year on the sales side And [indiscernible] people choose to do, we will prepare for I understand it's very important. We can't control that. We need to be able to adapt. So we've worked very hard in the last two or three years to diversify the countries, diversify the people we work with. Are qualified additional suppliers and we continue to keep maintaining relationships with farms in Cambodia. And We will comply with whatever they decide and adjust accordingly. But I'm very proud of the team we have, how they have adjusted, they've become much more agile. And I think it's our customers are looking for ways to reduce risk and [indiscernible] With that, the business continues to evolve. We'll evolve with it.

Okay. That's helpful. And then just last one for me. I was hoping you could help us out a little bit with maybe adjusted EBITDA cadence throughout the year. Heard the comment around staying in compliance with the covenants. But now that we're through some of the higher cost NHPs, and expecting a gross margin lift, how should we expect that to flow into adjusted EBITDA for the fiscal second quarter ended March? Well, let's start I think what we'll see [indiscernible] giving guidance. But for us to hit hit those covenants, it's probably there as some of you identified in your analyst reports that we're going to grow sales.

And we expect sales will grow year over year. And I think I alluded to that in comments So seeing sales grow year over year and having just seen that, that quarter that we finished have lower sales. You're going You can pretty well see that we think that we will have a pretty good Q2 to three and four I think if you also say that our original covenants, we were supposed to have a trailing twelve month EBITDA In December, our best I believe is $1,500,000 trailing six months, two quarters. Was our covenant, 1.6. And we're coming out of this quarter at positive believe, closer to eight So So we're obviously ahead of where we thought we would be.

And we're pleased with the results, And I think that the trailing nine months now going into March I think our covenant has said believe it's $13.5 Beth? Yes.

And so we're pretty good in pretty good shape. [indiscernible] we We're fairly bullish compared to where we have come from. We have some, I think, great opportunities in front of us with with what we have done. We have right sized all of our facilities for pretty good economics And that's something we've worked hard over the last two years. So we don't want to worry about as much other than the site consolidation we have going in North America doing a couple of sites. We don't have worried as much about brick and mortar in the right size. We've done a lot of the integration and we started up some new services and expanded some size. And again, the DSA business, we as those sites grow, we're going to see some significant margin improvement of those sites. So I'm excited to see those grow and we saw good growth as I just alluded to in our DTI Discovery Services and some of the service our start ups which I think will enhance we'll see in the back half of this year. So I think we'll see some margin improvement EBITDA, just the EBITDA improvement. On the back half of the year, the increasing sales and improving margins.

We'll move next to Matt Hewitt with Craig Hallum Capital Group. Good afternoon. Thanks for taking the questions. And maybe to follow-up on one of the things you said earlier, Bob. You kind of noted how there tends to be some lumpiness particularly at the end of quarters with NHP sales. Did you have any of that this quarter? Did any of those sales slip out of Q1 into Q2? Yes, we probably did. We could have some next quarter. And [indiscernible] swing $3,000,000 or $4,000,000 of sales very easily. But again, overall, it's [indiscernible] four or five weeks or not, last year, it could slip six months. We don't have anything like that. We've slipped four or five weeks or six weeks even.

We're okay with that. So I'm not Not really worried about that. Last year was was a lot different market, I think, than what we see going into this year. Last year, people had inventory, They're reducing inventory. And then this year, we even have some deposits going in which back up some of those sales and orders. So again, I think we'll see less volatility I think we're doing hopefully we're doing good good job. This year, one of the big differences, Martin, we had brick and mortar, we had integration, we had optimization, we had volatility. This year we've taken a lot of that out. This year is what we need to focus on is is customer satisfaction and be very customer driven. We take care of the customer We're small enough with Agile enough The rest of our business works very well. Economics are set up well right now. What we're doing, we have good good people. One of the things that we didn't talk about, but last year we had some challenges between the DOJ issues and some of the things going on. And we probably had some customers that [indiscernible] And right now, I'm pretty sick as some of those customers returning I see our turnover as low as it's ever been.

And that was a challenging year for industry and for our business. As others go through that, I'm really really pleased with the with the lower turnover, our management team has stayed together it gives us a much better opportunity to do a great job for our customers. So going to keep that customer focused continue to bring them back. Continue to make sure we we keep our employees satisfied. And I think the business will take care of itself. No, we don't have all the the tailwinds that we have going into a biotech funding that's up 20%, 30%, 40% right now. Nor we're expecting that. If that happens, that's great. But right now, we don't see that. We're not expecting them that, but I still think we're going to grow despite of that.

Got it. And then shifting gears a little bit, The book to bill and a couple of the other metrics kind of been bouncing around a little bit. The one in particular that I wanted mention was on the cancellations. It seemed like the last couple of quarters you were seeing some improvement that those cancellations were declining, kind of getting back to a normalized level at seems like that bounced back up here a little bit. Is that just a function of what's going on with pharma, companies kind of reprioritizing pipelines and kind of acting quicker on the fill and kill decisions? Or is there some other reason that you saw that number elevated here in Q1?

And I think we saw it elevated because we had one large project, which about $4,000,000 that got canceled and no [indiscernible] [indiscernible] So large we have large POs. If one project cancels, it's significant. And so one project may be different. And usually we don't have those larger projects to be canceled this quarter. We had an anomaly. We did have a large project. [indiscernible] that book to bill number [indiscernible] So again, I'm not overly worried about it. Because I think that was one that we'll see every once in a while like that. But hopefully, we don't have a lot of those out there typically. [indiscernible] we were really pleased. We made a lot of change in sales organization a year ago. On how we approach discovery and translational sciences and even a little bit of safety assessment. And Seeing that the 14% to 15% growth in awards for the three months Q1 and Discovery, for me, as a a pretty good green shoot. We're looking for that where we expect to go But that's something that we've seen year over year decline for several years and that's that's a pretty important business. It's very high cost structure.

We have a lot of leverage. There's an increase in sales. A lot of this can go to our large percentage goes to the bottom line. So I wasn't great. Although the cancellation was discouraging, I was I think I probably took positive takeaways from the quarter. Because I think that was a one off, one large project that really drove that negative cancellation. Number up. Got it.

Got it. All right. One last one for me and then I'll hop back in the queue. But as you look at the remainder of this year, and given some of your success with some of the newer tests or services that have been rolled out here recently, Do you envision rolling out some additional services over the course of this year? Or is it more about just selling more of your existing portfolio?

Matt, we'll continue to be very customer driven. If our customers are looking for additional service, and we're outsourcing, we feel that we can do a better job We will consider that. Right now, we're not I want our focus to be on our customers and delighting and meeting and exceeding those expectations and really improving communication. I think we have a lot of good services. Yes, we're going to we have a few I guess I think that we have a couple of small items that we're looking but they're not going to be significant. They'll allow us to grow some sites and be a little more sophisticated And so we're but they're not significant. We're buying new equipment or hiring people. What we're doing is we're training. And making sure our people are trained to do these things and are really improving. So they're not the day one for any new brick and mortar new technology. It's really training and expanding upon what we have in place. Okay, great.

Thank you. Thank you, Matt.

Will go next to David Windley with Jefferies.

Hi, good afternoon. Thanks for taking my questions. Wanted to understand the accounting revenue recognition cadence on presales of inventory. Are these Are these essentially commitments or are you is this a transaction that [indiscernible] triggers rev rec in the first quarter when you pre sell inventory? No, we don't. We don't recognize any revenue until the there's a transition of ownership So we don't recognize revenue of orders when they come Inotiv only after they are sold and transaction is completed. So no, there's none of that has been recognized. So when you say you're pre selling inventory, you have more orders in hand than you did entering last fiscal year.

But those have materialized in sales. That is correct. We have orders signed orders and we may have deposits but not revenue recognition. Okay. So we have some listen, we correspondingly, also have probably more deposits out with our suppliers. [indiscernible] we have bought further in advance Okay. [indiscernible] And in the case of so maybe invoking then the Colony Management Services, if I understand correctly, the way you're saying that, I mean, I would guess that in those cases, the client has bought the animal and you're boarding them and title has changed hands. Is that [indiscernible] Yes. If we are boarding for and then [indiscernible] passed specifically. And we would be boarding. Okay. Can you give me a sense of proportion Like how much of your RMS revenue is first of all, I guess Colony Management Services are in RMS, is that right? And then how much of RMS revenue my Colony Management Services represent Our calling management services for the RMS business I think couple of years ago it was '22 may have been in the range of $17,000,000 And I don't think we ever give any numbers [indiscernible] Okay, great. Last year was probably closer to $27,000,000 And I think we'll see that grow another 20% as we go forward.

So I think it's some customers, the large pharma and all above looking to to make sure they reduce the risk by owning these fees, but they may not have a place to storm, but they would like to buy it, make sure that they have access and reduce their risk and their volatility. And so we need to make sure that we're setting up our business to be able to comply to help them reduce their risk also. Do you have plenty of I don't know if the animals even have to be moved, but like for colony management, do you have to have a dedicated base? I presume this is in Dallas, Texas, but do you have plenty of plenty of room to grow that business without and that's a very good question. We have We have about 700 acres down there.

We've built up and invested probably in the last couple of years in in transportation and roads and water, sewer, hospitals veterinary support, [indiscernible] commissary the infrastructure you needed to have to have support for the colonies. Now we are building out Brick and mortar places to do boarding. And Inotiv our outdoor facilities improving heating and and airflow, water and whatnot. Have been pretty much in full capacity. For the last couple of years. And so as we've been able to to expand We've been able to increase that their revenue base. And so that's where some of our expansion dollars are going this year. Understood. On your We have 700 acres and up to 700 acres, we're probably using about two fifty. [indiscernible] On your NHP sourcing comments, so you're through the high cost inventory. Should we think of the move now to be kind of a step function down or is it more of a glide path over the next couple of quarters to a lower cost level.

I think you see a step function because I think most of the higher cost NXPs are out in the pricing except for next year. So I think we'll see [indiscernible] More of a step And we'll see I think we'll see increased increasing sales each quarter. So we won't see I think the margins could see improvement, but we'll see I think that each quarter the sales might improve. Okay.

Then last one for me, on the I mean, it does sound like the DSA gross bookings were kind of meaningfully better Sequentially, And then you have this one large cancellation Can you talk to us about the mix of that like I'd love more color on what clients are those coming from? And what type of services are they wanting to engage you on I think if I remember correctly, your DSA business does not have a lot of NHP related services. So I think you would tell me that it's mostly rodent studies but I'd love any additional color on what the kind of the profile of that improving bookings picture looks like. Thank you. Our DSA backlog and customers are over 95%, 96%. So that if that's what you look for, as we mentioned, between large pharma and biotech, it is biotechs we are getting for some of the unique services we have [indiscernible] some of our discovered work, we may see some increasing We're from large pharma, But for the most part, [indiscernible] [indiscernible] As far as service, I think we again, some of the services that we've built up with the Bi Therapeutics the genetic toxicology, we are seeing some antiTS right now we saw some pretty good awards last quarter, those are unique a good scientific team there And those have been very helpful.

Yes, I think there's the general safety assessment The general safety assessment again, we like to lead with science and work with customers. We identified the discovery stage and that's starting to happen. But that probably is still Fairly flat to down as far as because there's capacity in the market and people don't need to sell them that far in advance. We're also probably seeing an increasing amount of some of those things I outlined as blanket purchase orders come in. People want to move fairly quickly and gain their confidence they've used this a little bit in the past, but now they're giving us more meaningful blank of purchase orders so we can move more quickly with them and work and ahead with them and partner with them more than we have in the past. That's very encouraging. So I think for the commodity safety assessment, Probably Inotiv as [indiscernible] And still if we can leave the science, it's good, but it's some of the other specialty service and science that we've been working on that we're probably seeing more more growth. And again, as I said, discovering Translational Sciences would be nice for us to see that growth.

Got it. That's very helpful.

It appears we have no further questions at this time. Will now turn the program back over to Mr. Bob Leisure for any additional or closing remarks.

All right. Well, thank you everyone for joining today's call. We're We're very pleased with the events and results of this past quarter. As I've indicated, we made progress towards reducing our revenue volatility, improving our cash flow and liquidity, I think, going forward. We'll continue building Inovig as a high touch flexible provider with strong scientific capabilities that is focused on our clients' needs, positive environment for employees to have a greater and grow and generate positive returns for our shareholders. We'll continue to pay attention to the details get better every day.

To a four to twenty five. Thank you for your time today.

Thank you. Ladies and gentlemen, this does conclude today's program. We thank you for your participation. You may disconnect at any time.