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Good day, and welcome to the MedEquities First Quarter Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference call over to Mr. Tripp Sullivan, Investor Relations. Mr. Sullivan, the floor is yours, sir.
Thank you. Good morning. Welcome to the MedEquities Realty Trust conference call to review the Company's results for the first quarter of 2018. On the call today will be John McRoberts, Chairman and Chief Executive Officer; and Jeff Walraven, Executive Vice President and Chief Financial Officer.
Our results were released earlier this morning in our earnings press release, along with our supplemental package furnished with the SEC on Form 8-K which can be found on the Investor Relations section of our website. A replay of this call will be available shortly after the conclusion of the call through May 17, 2018.
The numbers to access the replay are provided in the earnings press release. For those who listen to the replay of this call, we remind you that the remarks made herein are as of today, May 10, 2018, and will not be updated subsequent to this call.
During this call, certain comments and statements we make may be deemed forward-looking statements within the meaning prescribed by the securities laws, including statements related to our 2018 guidance and related assumptions, the future performance of our portfolio and our operators, our pipeline of potential acquisitions and other investments, future dividends and financing activities.
All forward-looking statements represent MedEquities' judgment as of the date of this conference call and are subject to risk and uncertainties that can cause actual results to differ materially from our current expectations. Investors are urged to carefully review various disclosures made by the Company, including the risk and other information disclosed in the Company's filings with the SEC.
We will also discuss certain non-GAAP measures, including but not limited to FFO, AFFO and adjusted EBITDAre. Definitions of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in our earnings press release, which is available at ir.medequities.com.
I'll now turn the call over to John McRoberts. Please go ahead.
Thanks, Tripp. Good morning, everyone, and welcome to the call. Our start to the year is consistent with what we expected. We've had a measured pace of investment activity, and we continue to work closely with our tenants to monitor their overall profitability and performance. Our pipeline remains robust, and our balance sheet is in good shape, providing us the flexibility to execute on the pipeline.
Turning to our investment activities. We completed in January a loan for the redevelopment of an existing facility into an inpatient psychiatric hospital in Boise, Idaho and funded a mezzanine loan for a new inpatient rehabilitation hospital in the Louisville, Kentucky area. In late March, we also originated a mortgage loan secured by a second lien on a skilled nursing and assisted living facility in Dallas. And in April, we originated a $7 million mezzanine loan in Stockton, California for the development of an inpatient rehabilitation facility. All of these transactions provided us with an option to acquire each property at a later date.
The total investment volume that we have either put to work immediately or are expecting to phase in over 2018 or have locked in future purchase options is much larger than what our year-to-date announcements would imply. Of the mortgage investments completed and outstanding as of March 31, we had approximately $23 million of funded commitments that have yet to be disbursed. If we exercised our options to acquire these properties, our total investment would be $73 million.
We are using these mortgage loans with options to acquire in order to lock the properties up now, allowing us the ability to monitor their stabilization and operational performance prior to exercising the option to acquire them. Timing of our investments continues to be difficult to predict, but we have another near-term opportunity that is expected to close in the second quarter. This is with an existing operator and is going through the normal process of licensor transfer, which can take some time. We've completed our due diligence on the transaction, and we're finalizing transaction documents and are waiting on the regulatory issues to be concluded.
Our pipeline continues to hover around $500 million of nearer-term opportunities with small portfolio and single-asset transactions in the acute care, post-acute, behavioral and integrated medical facility sub-sectors. We can't execute on all these opportunities with our available capital, so we continue to pick and choose the most advantageous to us as to asset type yield and credit metrics.
As we look across the portfolio, we were in line with what we had anticipated in terms of occupancy and coverages. Trailing 12-month occupancy compared to what we reported last quarter reflected the addition of a couple of new operators to the stabilized pool.
Facility coverages were flat for the skilled operators and were higher for both the hospital operators and the entire portfolio. The skilled category, which includes both skilled nursing and one assisted-living facility, is heavily influenced by the well-documented and disclosed performance of our Texas Ten Tenant and the broader industry challenges.
As I'll describe in a moment, however, we believe there are some more positive indicators for this sector going forward and see it as stabilizing rather than deteriorating. Now as you've heard us describe the last few quarters, we've been heavily engaged with the Texas Ten management team, and we continue to see improvement in the leading indicators of quality outcomes.
Rehospitalizations are down, survey results and star ratings have improved and census is continuing to tick up. We are still not expecting the tenant to be in compliance with his coverage covenants throughout 2018. But we believe that we are still on track with our original expectation that there should be no meaningful declines in coverage after this quarter.
And finally, there has been some positive news from the SNF industry. Following on the heels of the budget bill passed by Congress earlier this year, CMS have been fairly active with new rule proposals for the SNF and LTAC sectors, among others.
The biggest news was that the late April rule by CMS for fiscal 2019 prospective payment system that ended up with a slightly higher rate than originally anticipated. CMS also rolled out its patient-driven payment model, which will supposedly be a less paperwork-intensive overhaul of its previously announced RCS-1 model.
Both plans advance the goal of shifting reimbursement initiatives away from the amount of care provided and toward patient outcomes. But CMS contends that this patient-driven payment model will also achieve those aims with much less confusion and paperwork for the providers.
Of course, it will take some time before the final ground rules are set rules are set, but for operators to deal with less bureaucracy and paperwork and to be able to focus on total outcomes without having to worry about units of care being administered should be very positive for the industry. That's a big change and we believe it will benefit the most experienced providers who can adapt to that patient-driven payment model.
For LTACs, there's been some positive news as well. CMS proposed to increase the PPS rate, which after adjusting for all those policy changes, it should result in a net increase of 20 basis points in 2019. Additionally, however, the LTAC proposal also eliminated the 25% rule in a budget-neutral manner, which is something the industry had been pushing for and is a very good positive.
For inpatient rehab and inpatient psychiatric facilities, CMS reimbursement rate updates for the fiscal 2019 were as expected, with a more positive trend of continuing to reduce administrative burdens, so no surprises there as well.
As we move forward, we expect to continue executing our growth strategy in a disciplined manner by taking advantage of what's available to us given our access to capital and adherence to our stated leverage goals. There are a number of attractive opportunities in our targeted sectors in healthcare, particularly in acute and post-acute care that we've been able to secure through the success of the loan-to-own investments, as mentioned earlier.
Now let me turn the call over to Jeff, who will address our first quarter financial results and the outlook for 2018.
Thank you, John. The Company’s reported AFFO per share of $0.30 for the first quarter of 2018 is consistent with the expectations we communicated on last quarters call. The $0.01 decrease from last quarter was the expected result from some one-time expense reductions of approximately $350,000 that benefited the fourth quarter 2017 results.
During Q1, we added approximately $23 million to our real estate investments, which is comprised of three new loan arrangements and additional fundings on existing loans that John discussed in his comments. The yields on these investments range between 8.25% and 12% and are expected to contribute approximately $2.3 million in annualized revenues. We funded this new investment activity with $16.5 million in borrowings under our secured credit facility.
Total indebtedness as of March 31, 2018, was $232.7 million, all outstanding under our credit facility, which is comprised of $125 million on the term loan and $107.7 million on the revolver. So far, in the second quarter, we have borrowed an additional $7 million under the revolver to fund some incremental investment activities.
As of today, we have a borrowing base availability on the credit facility of approximately $37 million, which can increase as we make further borrowing base qualified acquisitions. Our current spread over LIBOR on borrowings under the credit facility is 200 basis points. This spread, which is determined based on a credit facility-defined grid of debt to gross assets, increased from 175 basis points in December 2017, which is significant factor in the increased interest expense this quarter compared to the prior quarter.
The interest rate on the outstanding borrowings under the credit facility is currently 3.9%. The LIBOR component of the interest rate on the term loan has been fixed at 1.84% through the use of interest rate swap agreements. The all-in rate on the term loan, including the 200 basis point spread, is 3.84%.
Our ratio of net debt to gross assets was 35.2% at March 31, 2018, and net debt to consolidated adjusted EBITDAre annualized for Q1 2018 was four times. These metrics are slightly above the metrics reported last quarter as a result of the additional borrowings, but are still well within our targeted range. John gave an update on the Texas Ten portfolio that we have been discussing with you the last two quarters.
In April, the partners of the Texas Ten Tenant, GruenePointe Holdings, transferred the interest of the operations of the 10 skilled nursing facilities we own in Texas to a newly formed entity owned by two non-controlling partners of GruenePointe that also own a majority interest in OnPointe Health. The coverage statistics were included in the earnings release. The transaction did not affect operations of the facilities or any terms of the lease.
We are engaged frequently with the owners and executives of the operator and are monitoring the turnaround efforts closely. We still expect to see the tenant remain out of compliance with financial covenants in the master lease throughout 2018, which are determined on a trailing 12-month basis.
However, we do believe their operations are stabilizing and that this will be reflected in their operating metrics in future quarters. On an aggregate basis, the entire stabilized portfolio with the trailing 12 months ended December 31, 2017, and EBITDARM coverage of 2.25 times at the guarantor level and 1.56 times at the facility level, and EBITDAR coverage of 1.99 times at the guarantor level and 1.33 times at the facility level.
Lastly, let's take a quick look at some slight modifications we made to our 2018 annual guidance that are reflected in both the earnings press release and supplemental information report furnished this morning. We refined our estimates of net income attributable to common stockholders to a range of $0.64 to $0.66 per diluted share from the previous estimate of $0.63 per share, and we reaffirmed our per-share ranges for FFO and AFFO.
This change in result is an increase to the lower end of the range of the total investment volume for the year by $10 million based on our acquisition activity so far. As we look ahead to the second quarter and the rest of 2018, we believe we are well positioned to execute our growth strategy based on the current capital availability and positive debt profile of the company.
Operator, we're now ready for questions.
Thank you, sir. We will now begin the question-and-answer session. [Operator Instructions] And our first question will come from Jordan Saddler of KeyBanc Capital Markets. Please go ahead.
Thanks. Good morning. I'll start off I think with the GruenePointe/OnPointe situation. I didn't catch everything you laid out, Jeff, in your commentary. So I'm going to ask if you could just kind of clarify a little bit what happened structurally. I think GruenePointe Holdings partners owned 66% of the equity of the portfolio prior and the OnPointe principles were 34% previously. So can you just maybe vis-a-vis those previous ownership stakes, can you walk us through where we are now?
Sure, Jordan. And real quickly to get back the visual you just gave. So the GPH entity, the holding company that held the 10 assets that were operated and our tenant, that GPH entity was 33%/34% held by the OnPointe principles, who were also then the managers of the operations of our tenant. Then the other parties were 66% holders of the GPH. In a transaction in April, that partnership, the assets of that partnership were split up between our 10 operating assets plus one other operating asset plus one other entity within that, that now are 100% owned by the OnPointe principles that were the 34%, 33% owners of GPH.
The remaining GPH principles now own 100% of GPH and are hold – which holds the one completed Adora asset that is just in its start-up phase and an undeveloped piece of land in Texas in that same Dallas area.
So the capital partner, which was the GPH partner, walked away with just Adora Midtown and Adora Creek?
Creekside, yes.
Creekside? Yes, okay, okay. And OnPointe is now the Texas Ten plus, I guess, whatever they own. So your counterparty on the lease today is the OnPointe principles.
Well, that holding company now owns that tenant, yes. The master lease arrangement, which was with the individual entities, was not amended or changed. The guarantee arrangement of the holding company was effectively assigned and picked up by the new TX – TX 11 Holding is the legal name, but the TX 11 Holding entity. So every – management didn't change. Operations didn't change. The guarantor, the broader guarantor piece of that didn't change. You just split the ownership of the topside assets, that being the operating assets that were already there and then the start-up asset that had just been finished.
Okay. A little bit technical for the call, so I apologize to everybody listening, but – and to making you walk through it. But could you maybe – focusing in on Adora Midtown, the new mortgage you made during the quarter? What is the total capitalization or debt on that property today now?
When you look at the cap stack, the original costs or total capitalized cost of that facility to date is $24 million. There is a first mortgage of approximately $13.5 million; then there's our second mortgage, which is $5 million, and then there is equity for the remainder of that cost; plus there is equity that would cover – cash equity that would cover up to two plus years of stabilization of that asset.
Okay.
And Jordan, just to make sure that you and others on the call would know, in the investor presentation that we put out, not via e-mail but posted to the website, when you go into the appendix on Page 15 of that particular deck, there's the TX 11 Holding ownership structure and the management and the guarantee structure that reaffirms everything I just tried to explain.
That’s an updated version relative to what used to be.
That is correct.
Okay, great. That’s perfect. All right, thank you. I didn’t see that.
This is John. Just let me say one other thing, really there's not much change in this. There's some technical and legal issues had to occur to affect this change. But at the end of the day, you got the people who are responsible for the operations of all of this, who are now fully in an ownership position. And we think it actually enhances the overall situation because these other guys were just developers. They weren't operators, and so the way this actually ended up, we think is a much better situation for us and the company.
The OnPointe guys are not going to be managing Adora?
No.
They are not.
Okay and then just one other piece on that. So OnPointe, the OnPointe folks obviously lost a couple of SNFs, one in Brownsville and one in Albuquerque recently. How does that impact, in your view, the overall credit of that entity?
I think those two facilities together were about a net zero. One of them was performing pretty well. The other one was losing. So net-net, it really didn't add anything. But this – I think this is part of an ongoing kind of restructuring of the company to kind of weed out some of the weaker performers over time.
So at the end of the day, I mean they started off with our 10 plus 1 on, the GruenePointe side. OnPointe managed another 10, so you had a total of 21. So at the end of the day, we think as they continue restructuring and culling out some of these, that OnPointe will end up as an entity managing fewer than those 21 and that's just one step towards that.
And let me state, there was no surprise to us on that particular transaction. We, as a Company, and me in my role here, with that particular relationship, are very attuned to what is going on and in regular communication with them. I knew that was coming down and knew the basis for the conversations between CareTrust and them in those particular assets.
From a structure standpoint, I think part of the – the CareTrust team's a great team and a good company. There was – they were getting a lot of – unfortunately for CareTrust because of those two assets on their particular balance sheet, revenues were really a pimple on the much bigger entity where obviously we spend a lot of time.
Talking and communicating about OnPointe because it is a much larger and important part of our particular portfolio. And as we were having to, and rightly so, talking about this particular tenant and talking about where it's going, that caused a lot of questions having to go to CareTrust to answer publicly a lot of questions about a – what was a very small tenant to them.
So they opened up those conversations, and it was a very smooth transition. And as John had mentioned, and I confirm the – can confirm the fact, too that it was net-net, those two properties were – when you roll it all up into the broader, what was 21 operating assets, inclusive of our 10, those two net-net were about breakeven.
Do they still have the other eight?
Yes, they do.
Okay.
Right now we were operator 19 assets, 10 of ours, 11 of others – 9 of others.
Okay. Just one more for you, and I'll leave the floor. The type of facility that's teed up for 2Q, John, you alluded to, is there any additional color you could shed on that?
It's an inpatient rehabilitation facility. I don't know whether – can't remember whether I mentioned it or not. But that's what it is.
And is this an equity ownership or another loan potentially?
No, this is straight down the fairway, sale leaseback.
Yes, this types.
I'd prefer to wait until we signed the closing documents to release that.
That’s fine. Thank you.
And next, we have Jonathan Hughes of Raymond James.
Good morning. Thanks for the earlier remarks on OnPointe and details in the slide deck. Can you just talk more though about the $5 million loan made in the end of the quarter? We're under the impression investments to be more traditional sale leasebacks going forward which sounds like the IRF expected to close soon is. But can you just talk about why this loan was made? Was that a necessity to get the restructuring of OnPointe done? Or was it just an attractive route to ownership of Adora?
It really facilitates – it continues the opportunity. We have no obligation to buy Adora. We have the right to – we have the ROFR on it to purchase it really at any time that we would want to purchase it. Or if another party wants to come to the table and want to buy it, we have the opportunity to go ahead and close on that.
So it was a, call it, from a solidly capitalized asset, well equitized to be able to carry it through into a stabilization as it places in a new – places in an operator to really ramp up the initiation of the assets.
And it also facilitated asset split and ownership change that we were looking for, again to get the fully focused, the ownership and the operations of those assets, they were being able – fully focused on it due to the fact of there 100% ownership of it, they get 100% benefit. They weren't operating assets that they were only getting 34% of economic benefit of the operational results.
Okay. So a little bit about – I mean, do you see a relationship with OnPointe growing once the Texas Ten are stabilized? Or is the focus now solely on getting back to where they were, and then the growth discussion may reenter the conversation in, say, 12 months or something like that?
I would say right now we're fully focused on working with them to get their operational performance stabilized and improved. So we wouldn't be looking to do anything else with them at this point.
Okay. And then I realized, well, switching to the MOB, I realize the Brownfield asset's fairly small part of the overall company. But is there any update on leasing at that asset?
There is an update that we can't share with you right now. But I think within 30 days there will be some positive news we can put out.
Okay. And then just one more fro me, John you talk about the $500 million pipeline earlier that includes the acute, post-acute, behavioral. And then there was a fourth dagger called integrated medical facilities. Can you just elaborate on what those are specifically. I don't think I've heard you mention those in the past.
Yes, that’s just a term we come up with to describe what is on the outside looking in would be a medical office building, but when you look at the tenant makeup, you have fewer tenants, with a heavier amount of health care being delivered. So those faculties would have surgery centers, diagnostic centers and a few physicians that support all that. So it's like a medical office building but fewer tenants, larger tenants and heavier level of acuity being address within the building.
And then do you think – if so with the yield on those types of assets be – I mean, you're talking closer to an MOB or closer to the SNF in your kind of eight and nine guidance range.
It would be in between those two.
May be like six or seven.
You'll see some of the same – we actually see some of the same asset classes come across to trade with a seven cap or a seven handle on them. That's a little bit aggressive for us. But we see them trading in that range. So if we can get them in the low eights, we feel good about it.
Okay. That’s it for me. Thanks John.
And next we have Michael Mueller of JPMorgan.
Hi, good morning. Just looking at [indiscernible] that's showing OnPointe. It has about 48% of its revenues tied to Medicaid; occupancy, about 79%. Can you just walk us through like what the normal Medicaid exposure is for that portfolio? Where it was before things started to slip? How long it takes to kind of get back to where it should be going, et cetera?
When you're focusing on the – are you saying the Medicaid or the Medicare exposure that you're looking?
I thought it was the Medicaid that was about 48%, unless I got it wrong.
So you're looking at our – on the Q-Mix piece of that like we put out a graph on page 14.
Yes. I think it was looking at Page 12, and I'm actually just trying to pull this up again now.
14, I guess, where we show on a quarterly basis, Q3 2017 51%, Q4 52%, Q1 2018 50.5% on the Q-Mix. I’m missing your question, Mike. I apologize on that. If you can restate the question for me, I'll make sure I'll try to properly answer.
Yes. And actually, I'm pulling this up, up now. Just bear with me one second. While I'm pulling this up, the other question I had was the guidance talked about $45 million that has been committed but not funded. Can you remind us what that $45 million is comprised of and just the timing of when that capital's expected to be deployed?
$45 million was made up of, for this particular year – let me get to the summary that we have.
Yes. And from the prior question, I'm looking at Page 14 as well, and it's showing stabilized single-tenant portfolio, the top table, OnPointe, Medicaid revenues, 48%. And the question was, is that the normal level of Medicaid dollars coming into that portfolio because? It's significantly higher than.
I think that particular statistic in this portfolio right now has been fairly flat and stable.
Okay. Even before the erosion, it was running at close to half 50% Medicaid.
I would believe that to be correct, yes.
Okay.
And if you – definitely, if you look in the investor deck on Page 14, so there's a bottom graph called the Texas SNF portfolio of Q-Mix quarterly. And that would give you basically 3Q 2015 through 1Q 2018 on that. So then when you look at the $45 million that is there to date, what we have announced was the Haven transaction, which is a mortgage we put out, originally $7 million on the initial on that. We have on the Sequel transaction that has been continued to be funded during this year; the Mountain's Edge, expansion, any of the hospital asset in Las Vegas.
We did the Cobalt mezzanine mortgage, $5.4 million and then we put out an additional $3 million on the Gemini mortgage, which is the Houston integrated medical facility asset. And then the Adora loan that we did, the $5 million second mortgage on the completed asset and the first mortgage on the land.
And then the Stockton, California, which was an additional mortgage of $7 million that was closed in April. All of our announced transactions, you take the sum of those plus – the known fundings that would occur between now and the year-end will make up that bottom line of the $45 million on the guidance range.
Okay, in that $45 million, so it sounds like you'd expect it to be pro rata throughout the year. Is that a fair assumption?
Yes.
Okay. I think that’s it. Thank you.
Next we have Michael Carroll with RBC.
Yes, thanks. Just looking at the performance of the Texas Ten, and I believe that you always thought that the fourth quarter would kind of stabilize. But then in the earnings release, I think that you mentioned that you don't expect to drop further from this point or at least meaningfully further, I think was the way it was worded. So where should we expect coverage ratios to trend in the first quarter of 2018? Should we expect to kind of start bouncing higher or is it just going to be staying at this current level?
The preliminary Q1 2018 for the Texas Ten assets at this point, the preliminary data, I would say, you'll see a tick up in the coverages.
Okay.
So consistent with what we said, we had expected it to bottom in the fourth quarter and start to tick up beginning Q1 2018. And you'll be able to see that tick up in the data as we see it and understand it right now.
Okay. And then with all the ownership changes, I guess, how much liquidity does that operator have right now to sustain these losses here in the near-term and reinvest in the portfolio?
That's a fairly fluid situation. I mean right now from a rent basis perspective, they're current on their rents with us and with their other operators. As we see the metrics continue to tick up, right now we expect there may be some capital infusion from other places that would – that will continue to bolster an even bigger and a broader balance sheet. But right now, they're not out of the woods, but they're continuing to work through it and still being able to meet their obligations.
Okay. And then how are the nine assets outside of the Texas Ten portfolio performing for OnPointe right now? And out of those assets, how many are stabilized versus developments that are being ramped up right now?
All nine of those actually at this point are either at or very, very close to stabilization. Five of those nine assets were de novo assets that were definitely in the latter part of 2016 and through the greater part of 2017 and ramp up. Those assets are – I'll say the majority of them are actually performing very well now and especially on a future-forecast basis. There may be one or two in there that is still a little bit on the weaker side, but those nine assets are actually doing well.
And do they have leases on all those assets?
Yes, none of them are owned by them. There is out of those nine assets. There are two others who own two, and then the rest are all just individually owned by other one-off owners.
Okay. And then just last question on Page 15 in the presentation, looking at the excess collateral and guarantees, can you talk a little bit about that $6 million pledge of equity in working capital and CapEx cash reserves holding? Is that money that's set aside in an escrow? Or is that something that – or who's backing that $6 million pledge?
Well, that $6 million was part of the proceeds. So when you do go back to the original transaction when we bought these assets, there was cash that was put aside inside that for the specific purpose of – if needed and necessary to be utilize within working capital. And at this point within the company we have the consent rights as to how and when that cash gets used. And right now that cash is cycling in and out, being used in working capital.
Okay. Great. Thank you.
Next, we have Daniel Bernstein of Capital One. Please go ahead.
Good morning. Most my questions are answered, so let me tie some loose ends. The corporate coverage for skilled nursing looked like it dropped a little bit. Was that related to OnPointe? Or is it something else? I mean, it's still sufficient, but I just want to understand that?
Primarily OnPointe yes.
Okay.
That particular ratio and is heavily influenced by OnPointe obviously.
Okay. And then same thing you jump in the hospital lease coverage, is that just a new asset that came in, and it's not quite same-store versus last quarter?
That would be correct, Dan.
Okay. I want really on the loose ends I had not too much for you today.
Yes.
Thanks.
Thank you, Dan.
And our final question will come from Matt Boone of B. Riley FBR.
Hey, guys. Could you give a breakdown of your acquisitions pipeline from an asset class perspective to kind of get a sense of what you are seeing the best opportunity and what your focus will be going forward?
Yes, we continue to focus on smaller acute care opportunities. We're looking at some inpatient rehab opportunities. We're also looking at some long-term acute care opportunities and some integrated medical, which is – and we would look at some more behavioral. We know everything in our site right now, but that could possibly come into focus. So we are not looking at any SNFs at the moment but the other areas of post-acute we do like.
Great. Thanks.
End of Q&A
Well, this concludes our question-and-answer session. I would now like to turn the conference call back over to Mr. John McRoberts for his closing remarks. Sir?
Thanks. Hello thank you everybody who will join us on the call today. As usual, we're available for follow-up questions you might have in the coming days. I know some calls have been scheduled already. So if you want to follow up with us, just give us a holler, and we'll set up time to answer for the questions.
And we thank you, sir, and to the rest of the management team also for your time today. Again, the conference call is now concluded. At this time, you may disconnect your lines. Thank you again everyone. Take care. And have a great day.