Perma-Fix Environmental Services - Earnings Call - Q3 2019

Transcript

Speaker 0

Ladies and gentlemen, this is Kay, and thank you all for joining this Perma Fix Environmental Services Third Quarter twenty nineteen Business Update Conference Call. All telephone lines are presently in a listen only mode. Instructions on how to submit a question will be shared after today's prepared remarks. As a reminder, today's meeting is being recorded. For opening remarks and introductions, I am pleased to turn the floor over to Mr.

David Walton Welcome, David.

Speaker 1

Thank you. Good morning, everyone, and welcome to Perma Fix Environmental Services third quarter two thousand nineteen conference call. On the call with us this morning are Mark Duff, president and CEO Doctor. Luz Anifani, Executive Vice President of Strategic Initiatives and Ben Naccaratto, Chief Financial Officer. The company issued a press release this morning containing third quarter twenty nineteen financial results, which is also posted on the company's website.

If you have any questions after the call or would like to need additional information about the company, please contact Crescendo Communications at (212) 671-1020. I'd also like to remind everyone that certain statements contained within this conference call may be deemed forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and include certain non GAAP financial measures. All statements on this conference call other than a statement of historical fact are forward looking statements, which are subject to known and unknown risks, uncertainties and other factors, which could cause actual results and performance of the company to differ materially from such statements. These risks and uncertainties are detailed in the company's filings with the U. Securities and Exchange Commission as well as this morning's press release.

The company makes no commitment to disclose any revisions to forward looking statements or any facts, events or circumstances after the date hereof that bear upon forward looking statements. In addition, today's discussion will include a reference to non GAAP measures. Pharmaceutics believes that such information provides an additional measurement and consistent historical comparison of its performance. A reconciliation of the non GAAP measures to the most directly comparable GAAP measures is available in today's news release and on our website. I'd now like to turn the call over to Mark Duff.

Please go ahead, Mark.

Speaker 2

All right. Thanks, David. We're very excited to report our third quarter earnings today, which we believe demonstrates the success of our growth strategy over the past few years. Our entire company is focused on the implementation of the strategy and significant time and energy by our management team as well as their staff has been spent to reach these growth objectives, which are reflected in our third quarter performance. These accomplishments set the stage for our performance in 2019 as well as the next several years.

Specifically, I'm pleased with the performance that received strong third quarter operational and financial performance in both the Treatment and Services segments. However, perhaps more important, even as we're very well positioned heading into the fourth quarter and next year. I'll take a minute to recap some of our financial highlights, and later, Ben will discuss the financial results in more detail. Our revenue for the third quarter increased 88% to 22,500,000 Our Services segment revenue increased 332% to $12,400,000 And our Treatment segment increased our revenue increased 11% to $10,100,000 We generated adjusted EBITDA of $2,400,000 compared to 05/10 ks for the same period last year. And lastly, we've achieved net income attributable to common stockholders of $1,800,000 or $0.15 a share for the 2019 compared to $121,000 or $06 a share for the same period last year.

As a result of this growth in our improved contract backlog within the Services segment, we believe that our financial outlook for the remainder of 2019 and 2020 remains very strong. As we've announced through press releases in the past several months, CeramicScript has realized several successful contract wins that directly impacted our Services segment performance, both operational and financially. These wins include several new projects with Department of Energy Cleanup program as well as commercial clients, Department of Defense projects and rapid growth in Canada, while conducting contaminated soil remediation. Our success in managing these recent projects has resulted in development of a positive client reference base that is critical towards future procurement for both the prime and subcontractor opportunities. This momentum has been bolstered by a plethora of new demand opportunities in both government and commercial sectors that's directly aligned with the Permanent's offering, which provides an exciting growth outlook for the coming years.

Our performance over the past four or five months has also allowed Perma Fix to strengthen our management team through additional key staff in the Services segment to include senior project managers, engineers and experienced technicians in both our project and performance and our customer relations with the new procurements. In addition, we've been able to enhance our offering through new technologies, including our PermaSort soil sorting system with two new successful procurement wins this quarter that will support deployment in 2020. Within the Treatment Segment, we broadened our offering through ongoing expansion within each of our three city plants to include new comprehensive equipment dismantlement capability at our Northwest facility, continued construction at our Oakley facility to support increased storage and new treatment system deployment and significant upgrades to our Porta facility to enhance efficiency and improve our working conditions. We believe these steps position us to support new procurements within the DOE as well as starting our offering to several targeted DOD initiatives. The GeoMelt differentiation unit at our Perfix Northwest plant is performing very well, and we continue to increase efficiencies.

This new capability allows us to address a large inventory of reactive waste currently in storage at several government locations and provides a substantial multiyear backlog from the new incremental waste stream. As I've discussed in the past, the inventory of this waste stream is estimated to be in excess of $100,000,000 including large inventories at Idaho as well as at Hanford and here in Oak Ridge. We are continuing to progress on the expense of our Tennessee and Florida locations while managing our capital spending. Once complete, we anticipate return on investments in excess of 40 for both of these initiatives. We expect these initiatives to completed in the 2020.

For this reason, we continue to focus on expanding our market base in the Treatment Segment through aggressive marketing initiatives within both utility and decommissioning sectors. As discussed on our last call, we finally completed the closure of our M and T facility, which consolidates waste treatment capabilities within the three remaining facilities. As a result of the closure of the M and T facility, we received $5,000,000 in cash previously held as collateral for the facility under our financial assurance policy. The Perma Fix team remains focused on safety on all of our projects and facilities while continuing to drive growth through innovation to our clients that result in tangible cost savings and value. So over the next few quarters, we anticipate the announcement and launch of additional capabilities that will directly result in sustained growth and financial support in both waste treatment and our new pest services offering.

So to wrap up, we're now seeing the benefit of our strategic initiatives over the past few years. In addition to our strong revenue growth, we're seeing the benefit of our initiatives to improve operational efficiencies within our organizations as well. As a result of today's report, we achieved net income of $1,800,000 for the 2019. Overall, we're extremely encouraged by the outlook for the business as we continue to grow our services business. It provides us a good visibility into the future quarters.

At the same time, we're advancing a number of significant opportunities to leverage our fixed waste treatment facilities, providing innovative treatment options for a variety of nuclear waste streams that will broaden our market base. We continue to enhance our balance sheet, and I anticipate further year over year growth, strong cash flow and sustained profitability in the 2019 and heading into 2020. On that note, I'll now turn the call over to Ben, who will discuss the financial results in more detail. Ben? Thank you, Mark.

I'll start with revenue. Our total revenue from continuing operations for the third quarter was $22,500,000 compared to the prior year of $12,000,000 Revenue from the Service segment was $12,400,000 compared to just $2,900,000 in the prior year, that's an increase of $9,500,000 or 332%. This increase was a direct result of the increased project working segment, primarily from contracts awarded in the past few quarters. Revenue from our treatment segment was $10,100,000 compared to $9,100,000 in the prior year, an increase of $978,000 or 10.7%. This increase was primarily from average higher higher average pricing from waste processed and disposal.

For nine months ending September 30, our total revenue is $51,400,000 compared to $37,800,000 in the prior year. Both of segments' revenues have decreased compared with prior year. The Service segment increasing by 101% from increased project work, while the Treatment segment revenue is up 10.6% at average higher pricing. Our cost of sales was $17,400,000 compared to $10,200,000 in the prior year. Cost in the Treatment Segment decreased $796,000 as a result of a decrease in the closure expenses at our M and EC facility of $1,100,000,000 last year.

The decrease was offset by increases in our variable costs, which relates to revenue, while our fixed facility costs remained relatively flat. In our Service segment, cost of sales increased by $8,000,000 as a result of the increase in revenue. Our gross profit for the quarter was $5,200,000 compared to $1,800,000 in the 2018. That's an increase of $2,300,000 or 182.6%. Excluding the $1,100,000 reduction in closure expenses at NMEC, gross profit increased by $2,200,000 or 76.7%.

Gross profits were higher were impacted by higher revenue in both segments fixed costs increased only marginally in the Service segment despite the significant increase in revenue. Year to date, gross profit was at $10,900,000 compared to $7,200,000 last year. This increase is the result of higher revenue in both segments and the reduction of closure expenses at M and EC, offset by higher fixed costs. Our SG and A for the quarter was $2,900,000 or 13% of revenue, up from $2,600,000 or 22% of revenue last year, and this is due to higher labor related expenses. Year to date, our SG and A were $8,500,000 or 16.6% of revenue compared to $8,100,000 or 21.3% of revenue in 'eighteen.

Higher payroll related and property expenses were the main drivers for this Our income from continuing operations net of taxes for the quarter was $1,900,000 compared to $317,000 in 2017 last year. Year to date, income from continuing operations was $1,700,000 compared to $1,400,000 in prior year. We had a net income attributable to common shareholders for the quarter of $1,800,000 compared to last year's net income of $221,000 Year to date, income attributable to common shareholders was $1,400,000 compared to $965,000 last year. We had basic and diluted net income per share for the quarter of $0.15 compared to net income per share of $02 in the prior year. On a year to date basis, basic net income per share was $0.12 compared to $08 in the prior year, and diluted net income per share was $0.11 compared to $08 in the prior year.

Our adjusted EBITDA from continuing operations for the quarter, as we defined in this morning's press release, was $2,400,000 compared to $510,000 last year. And our year to date adjusted EBITDA from continuing operations was $3,500,000 compared to $2,100,000 in the prior year. Turning to some key balance sheet activity. Compared to twelvethirty oneeighteen. Our cash on the balance sheet was $2,400,000 compared to $810,000 at year end.

Cash from the Finite Risk Fund and the operating the improved operating performance were the main drivers for that improvement. Our accounts receivable and unbilled receivables collectively have increased by $9,200,000 reflecting the increased activity in the Service segment. Our current assets are up $710,000 due to higher interest rate expenses primarily from the result of the company's insurance program. Our operating lease right of use assets were $2,600,000 representing the present value of operating leases as a result of implementing the new ASC eight forty two lease regulations. Intangible and other assets were $4,500,000 primarily from the release of the 5,000,000 were down 4,500,000.0 primarily from the release of the $5,000,000 of the finite risk sinking fund at the closure of the M and P facility.

Our current liabilities from continuing operations were up $4,000,000 primarily due to increases in the Services segment. Backlog at quarter end was $10,600,000 down from 11,100,000.0 at year end, but up from the $9,400,000 at September 2018. Our long term liabilities from continuing operations were up $3,300,000 primarily from the new accounting for leases under ASC eight forty two, of which $2,400,000 of the increase represents the present value of our operating lease liability. Our total debt at quarter end was $5,000,000 excluding debt issuance costs, of which $2,000,000 is owed to PNC Bank, dollars 2,300,000.0 to our shareholder loan and $670,000 for other financing debt. Next, I'll summarize our year to date cash flow activity in September of thirty of 'nineteen.

Cash used for continuing operations was $3,000,000 Cash used for discontinued operations was 459,000 Cash used for investing and continuing operations, primarily capital, was $812,000 Cash provided from investing activities from discontinued operations was 100,000 Cash provided from financing was $1,100,000 and this is made up of our monthly payments to our term loan of $717,000 net payments to our revolver of $639,002,300,000 from funds received from the shareholder loan, net of prepayments made and other refinancing of 119,000 Finally, before I turn the call over to questions, I'd like to take the opportunity to discuss the fixed cost savings in the Treatment segment that resulted from the M EC closure. At the time the decision was made in 2016 to close M and EC, we anticipated that this would result in a decrease of fixed facility expenses between $4 and $5,000,000 The noncash reductions in depreciation and amortization accounted for about $2,400,000 of this amount, while the other fixed costs included labor including labor represented the cash savings. The cash savings portion turned out to be approximately $1,900,000 for a total fixed cost reduction of $4,300,000 The facility is not closed, and we are not incurring slots at this location.

So the $4,300,000 savings have been realized. However, since the announcement, which was over three years ago, the segment has evolved and the strategic changes and other changes that have increased in other operating expenses. In 2016, treatment revenue was $32,500,000 and this year, 2019, were annualized estimates trending at about 40,000,000 About $5,000,000 of this increase has come from new business that was not at M and EC. In order to generate this new revenue, we've incurred additional labor and, of course, cost of living increases that have increased payroll by about 1,000,000 And the other big number that's gone up has been the health care costs, which have increased about $400,000 In addition, the costs, certain costs have been incurred at M and EC through June this year, and there have been a few other unusual costs, which annualize at about $1,000,000 and should not recur moving forward. So in summary, our fixed cost of goods sold in 2016 were approximately $19,500,000 Three years later, our third quarter annualized run rate of these fixed costs are $17,500,000 That comes from a decrease of $4 plus million at M and EC, which is partly offset by the $2,000,000 of new of costs from new business and inflationary related increase.

With that, operator, I'll now turn the call over to questions.

Speaker 1

Thank you.

Speaker 0

And, also, a friendly reminder, if you're joining us today on a speakerphone, please return to your handset before pressing star and one to ensure that your signal does reach our equipment. Once again, ladies and gentlemen, that is star and one if you would like to ask your question. And we'll go next to the line of Howard Brouts with Wellington Shields.

Speaker 1

You. Mark, Ben, congratulations on just not only a great quarter, but the whole process of what you've been doing since you joined the firm, Mark. So congratulations. Much impressed. Power purposes.

You're very, very welcome. I have one just a couple of questions. One specifically, Mark, on a going forward basis, how do I look at the split between treatment and services, say, after the fourth quarter, but certainly for 2020 and 2021? Could you give me some sense of that, please?

Speaker 2

Yes. I'd say right now, we're probably close this year in the fifty-fifty range, so just about half. And next year, it will be more 40% to 60%, 60% being services. And we see a much steeper services revenue increase, but margins are not as much expect yet. But, yeah, it's fifty forty for next year at least, and and probably probably put it to it's the 70 in the following years.

Speaker 1

Seventy thirty, 70 being services, 30 being.

Speaker 2

Correct. Okay.

Speaker 1

Then just a couple of specific questions, and I'd like to talk to you offline about some others once the queue is out. When when do you expect it to, by the way?

Speaker 2

We are hoping to get it out today. Okay. So if you

Speaker 1

could tell me, thoughts and very free cash flow, give me some sort of a sense now and on a going forward basis?

Speaker 2

Well, on a going forward basis, you'll see it the one caveat is we are ramping up our capital spending for some of these initiatives. So that would be your biggest reduction to free cash flow. But generally, the EBITDA will we expect EBITDA to continue to be strong. We had much of the cash from the finite risk money was really to pay the bills that had accumulated from the closure, and we're past that now. So I think No, I

Speaker 1

realize that. That's what I meant by just on a going forward basis, say, looking at 2020, just as an example.

Speaker 2

Right. Yes. I think you're going to see the EBITDA. Our cap spending, again, is probably the only segment where we've got pretty good NOLs, so we're not paying taxes for the sake of a while. So really, the cap spending, which we're not going crazy with cap spending for our usual.

We used to spend in the $1,000,000 range. I think we're going to be looking at more like $2,000,000 a year for the next little bit because of some of the new initiatives. So I think you can take your EBITDA estimates and just factor in about $1.5 to $2 of cash spending for free cash flow.

Speaker 1

All right. Unbilled receivables, 9,000,000, and that's a very good number compared to December. When do you think that runs off? And obviously, they build up over time. So I'm just talking about current.

When does that convert to revenue?

Speaker 2

Immediately, Howard, most of our unbilled because of the service business, it takes it's a bit of a process to get an invoice put together. It's an invoice every invoice every month is like a small phone book, for those of you who remember phone books and with backlog. So we accrue we book the revenue at the end of the month, and we usually flip the bill in about a month.

Speaker 1

Sorry, I'm old enough to remember a phone booth.

Speaker 2

Yes. That's a reflection of the increase in the service side and that those invoices slip within usually within fifteen days.

Speaker 1

Alright. One last question, and I'll defer it when the when the key comes out and give you a call then offline. I just have to laugh. Allowance for doubtful accounts is up. What part of the government isn't paying you?

Speaker 2

Well, we have other customers that are not necessarily government. And we have a standard model where we just accrue when certain things get aged. And some of those good government customers you're talking about like to nickel and dime up with details of paperwork, and sometimes it ages. But it's usually reversing once we do pay. We sort of have a thought that by aging how we go up.

So nothing that's of great concern right now.

Speaker 1

One last for Mark, if I may, please. If I look at a year from now, how will I look at the company? We we talked about certainly services at 60% to 70%, 30% to 40% treatment. What kind of revenues do you think we could be looking at, say, the 2020 on a going forward basis?

Speaker 2

Well, we can our goal has been for quite some time, actually two, three years ago, we said this goal is by the 2020 to be annualized at $100,000,000 So that's been our goal or focus. And we feel like we're on that track. A lot of things can happen between now and end of next year, but we anticipate meeting that goal on an annualized basis and on a monthly burn basis.

Speaker 1

Thank you. And, Mark, and congratulations. Great job very much. Thank you,

Speaker 2

sir. My pleasure.

Speaker 0

Question, that is star and one. Again, please be sure that you return to your handset or press star and one to signal up. We'll move next to the line of Walter Shanker at excuse me. You're a private investor, rather. Please go ahead, Walter.

Your line is open.

Speaker 2

Sure. Capital Advisors. But two questions. First, as you ramp up service contracts that requires hiring a significant number of people, to what extent as you work through those contracts, which are multi period contracts, do these people go through a learning curve and therefore become more efficient and profitability could improve as you work through these larger contracts? That's the first question.

Yes. Well, that's tough to quantify, but you're obviously right. We've hired 80 people in the past two quarters starting at about the April time frame. And we have hired a lot of new folks on, but not so much that require a lot of training. We've been able to find people for our projects that are willing to go on the road and support the field operations as well as from here and in the corporate as well as the treatment plant.

So that really hasn't been difficult yet as far as how to train folks. So the impact of that ramp up, it may be a few weeks of inefficiency, but we're up and running all our projects within a few weeks. And we typically build that into our schedule that we put in our proposal that we're gonna have to train a certain number of people. We may have, you know, a couple weeks of of ramp up. But for the most part, it's it's negligible so far.

Second question. I'm just gonna read a sentence. At the same time, we're advancing a number of significant opportunities to leverage our fixed price treatment facilities by providing innovative treatment options. Can you put a little more color on what some opportunities might be? So the plants themselves, each plant, we're looking at new technologies.

As of a calls ago, thing we've been doing very well, our business development staff has been doing very well, is defining waste streams that either can't be treated that are out there, which is surprising, a surprisingly large number, or waste streams that we can't treat efficiently. And in fact, the other people are treating or that aren't being treated at all or being treated inefficient or more simply. So we're looking at those inventories. We define those and then our technical folks, engineers define technologies that can do them less expensively or at least efficiently. And we're in the process of deploying those at each of our sites, new ones.

We did several acts. We talked about GeoMelt and the water program in Florida. So we've got a similar one going on here in Oak Ridge to treat Freon and to treat some other waste streams that are coming into view. And when those technologies get completed, then we'll start marketing them balancing some press releases and those kinds of things. So each plant, we hope to have some type of improvement each year and broaden our inventory that we can treat.

Okay. And you still are, at some point, waiting to hear what might happen at Hanford to expand the We are. We are. You know, department of energy keeps delaying that award, and I'm not sure what the due date is now. It was it was supposed to be here at a conference, and they talked about it was supposed to be in the seventh January time frame.

I I suspect that they will probably push it out from there. So I'm not sure where it is, and, you know, it gives all the speculation to to make a guess as to when that would be. Okay. Thank you very much. Thank you, Walter.

Speaker 0

Next, we'll hear from the line of Avi Fisher with LongHat Advisors. Please go ahead. Your line is open.

Speaker 2

Hi, Mark. Again, echoing what other people said,

Speaker 1

you know, doing a good job on the turnaround. I think your industry had on with tech, AECOM just sold its managed services business at

Speaker 2

the floor considering the sale of theirs. What is what do you see

Speaker 1

you have in the industry? Do you see yourselves? Suppliers? Just wondering if you could just chat a little bit about how the industry might shift you as these large times might be shifted?

Speaker 2

Well, that's a that's a really interesting question, Avi. And I don't know what to make of AECOM floor situations, whether they're related at all or indicative of industry trends or more just in terms of those firms and where the rest of those guys are. I can speculate and say that it seems like most firms have been tied to oil and gas and have some adjustments along the way based on changing margins and those kinds of things. That would be good speculation on my behalf. As far as our car industry goes, so it hasn't changed that much.

It's the amount of funding that the Department of Energy has in the cleanup program has been so much flat the last couple of years. It's increased over prior years. And there's a lot of opportunities to bid, way more than normal. And as far as we're concerned, it doesn't really have much of an impact. It does impact who we team with and what some contractors or smaller team partners are on each team.

But generally, we play the same niche relative to irrespective of how those firms evolve and change. Dartmouth is the waste management and Rides Protection Services, and that stays the same. So that market or submarket has been growing. And as we build our technical staff, we have more to offer, so along with their technologies. To answer your question really directly, it has a limited impact on us, and I think it's more it changes and more into each firm's specific situation.

Speaker 0

Which it changes your ability to change share?

Speaker 2

Not really. Because the big boys, you can throw AECOM, Floor and JCP and a few others in there. But they're going to be Tier one prime contractors, and we're not going to bid on a burning power contract. So it doesn't have a big impact on us overall.

Speaker 0

And, again, ladies and gentlemen, if you are attempting to signal us today to ask a live question or get clarification on anything covered in today's release, be sure that you return to your handset before pressing star and one to be sure that your signal does reach our equipment. We'll hear next from a shareholder, Mr. Steven Klein. Your line is open.

Speaker 1

Congratulations, guys. I think the interesting point in previous calls, there there have been comments that what was promised didn't happen. Well, it happened. You know, I think in the last call, I remember Marcus saying this should be the inflection quarter, and clearly, it is. It's beyond my greatest expectation.

So congratulations to you all. It's wonderful to watch a plan put into effect and it could be executed and so forth. So again, congrats. I find what's very, interesting as I learn more about this company is and I I guess I gotta ask a question to you first, Mark. When you talk service, do you need the plants for service?

Speaker 2

No. We define service to you as very clearly a field project. Services are projects or contracts that are not in the facilities, in the field client at site or support from our offices, but not in the plant.

Speaker 1

You. Ben, I got a question for you. If right now we were to rebuild the three plants, how much do think that would cost?

Speaker 2

Well, we get this question a lot. It's a lot of intangible. Ballpark's probably $90,000,000 $50,000,000

Speaker 1

That's all?

Speaker 2

Maybe more. It's time, it's lawyers' permits. You've got a lot of intangibles that it's hard to quantify that cost, but probably that number.

Speaker 1

Okay. So I guess where I'm going here is when I hear you say, Mark, that down the road, you should be $70.30 in service. So that means that, in essence, you could go you know, I mean, you're not gonna do it because you're doing some neat stuff. But that's neat as, hey. You got a business that you don't need to plant down the road.

So

Speaker 2

No. I would yes, I wouldn't yes, I would not assume that at all. Our plants provide a real entree into our services and a real niche. Example, we're doing a project out west right now where we do the remediation and doing the waste treatment. And they're very linked together, and it's a real discriminator.

So no, I would say that we would not be the same company without this plant. Since I said 40,000,000 to $50,000,000 I was just a ballpark, but I'm sure Lou would agree that the permitting process for those are tens of millions of dollars. Permits are equally equal in value to the actual facility.

Speaker 1

Okay. Alright. So but, you know, the exciting the the exciting thing to me, you know, having some background in government contracts is that you're evolving a business where, like, it's something like hampers, like, a gentleman asked comes along. It's just pricing on the cake. And that you're building a business that can stand by itself, particularly when you say that the the greater proportion of

Speaker 2

the business is going to

Speaker 1

be serviced, and that's great. Because, you know, if you have a change of government or what have you or you get impact there, you're gonna have a sustainable escalating business because, you know, one would think that you've known more, you know, you do more. But, you know, at the same time, as you said, which I think is amazing, is that the approach that you're going through relative to your treatment is you're looking at these very esoteric treatments, you're looking at very esoteric things, and your capabilities are are are esoteric. So anyway, that's about all I have to say because I I you know, and the other point, which no one has brought out, is you did $53,000,000 in sales to three quarters. I don't think you did.

What did you do last year? 40 in the whole year, you did what? 49 to 50?

Speaker 2

In the whole twelve months? Forty year. Nine Yeah.

Speaker 1

Yeah. We did 53,000,000 in three quarters. Okay? So no one's got that point up. So we clearly have an escalating pay, which also creates pressure on you because henceforth, you got to keep moving forward.

But anyways, it sounds very exciting. Thank you. Thank you for allowing me to be a stockholder.

Speaker 2

Thank you. And

Speaker 0

at this time, we have no further signals from our audience. I'd like to turn it back to Mr. Duff and the rest of the leadership team for any additional or closing remarks.

Speaker 2

All right. Thank you. I'd like to thank everyone for participating in our third quarter conference call. As I mentioned earlier, we're pleased with our Q3 results, which reflects the success of our strategic and business development initiatives over the past few years, and we remain highly encouraged by the outlook of consensus in Q4 as well as into 2020. So thank you very much.

Speaker 0

Ladies and gentlemen, this does conclude today's earnings conference, and we do thank you all for your participation. You may now disconnect your lines, and have a great day.