Myriad Genetics Inc Q2 FY2023 Earnings Call

Thanks, Dave. And good afternoon, and welcome to the Myriad Genetics second quarter 2023 earnings call. During the call, we will review the financial results we released today, and afterwards, we will host a question-and-answer session. Our quarterly earnings release was issued this afternoon on Form 8-K and can be found on our website at investor.myriad.com. On the call with me today are Paul Diaz, our President and Chief Executive Officer; Bryan Riggsbee, our Chief Financial Officer; Nicole Lambert, our Chief Operating Officer; and Mark Verratti, our Chief Commercial Officer. This call can be heard live via webcast at investor.myriad.com, and a recording will be archived in the Investors section of our website, along with this slide presentation. Please note that some of the information presented today contains projections or other forward-looking statements regarding future events or the future financial performance of the company. These statements are based on management's current expectations, and the actual events or results may differ materially and adversely from these expectations for a variety of reasons. We refer to the documents that the company files from time to time with the Securities and Exchange Commission, specifically the company's annual report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. These documents identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. With that, I will now turn the call over to Paul.

Thanks, Matt. Good afternoon, everyone, and thank you for joining us. On today's call, we will discuss highlights from the second quarter and provide an update on the progress we are making towards profitability in the fourth quarter of this year and sustainable growth and profitability in 2024 and beyond. Before we begin, I'd like to announce that we will be hosting an Investor Day on September 19th with a presentation and tour of our new state-of-the-art facility in San Francisco, named Dr. Walter Gilbert Innovation Center after the Nobel Laureate and co-founder of Myriad Genetics. An invite will be sent out, and registration details for this event will be posted to the Investor page of our website soon. Transitioning to the quarter, I first want to thank our Myriad teammates and our provider partners for their continued support and commitment to advancing our mission and vision of making genetic testing and precision medicine more accessible and helping people take more control of their health, enabling providers to better treat and prevent disease. Total revenue grew 10% year-over-year after excluding an out-of-period adjustment of approximately $12 million of revenue in Q2 of last year, marking our third consecutive quarter of double-digit top-line growth. This growth was despite payer-related headwinds in the quarter that are transitory and administrative in nature, which have largely been addressed in future periods. Bryan will discuss this in more detail shortly. Myriad Genetics drove significant volume growth in the second quarter across all of our products as our commercial and lab operations teams continue to execute in these underpenetrated markets. We believe we are gaining share in the hereditary cancer testing market each quarter, with growth of 20% in Q2 over the same period last year, driven by competitive account wins and increased adoption by providers of myRisk for patients whose family history puts them at a higher risk of cancer. Despite payer headwinds in a difficult operating environment, second quarter saw Myriad maintain industry-leading gross margins and reduced operating costs by $11 million for the first quarter, all while improving on our operating key metrics, which Nicole will address on the call, and exiting the quarter having generated $5.9 million of adjusted operating cash flow and significantly lowered our cash burn. In the quarter, we closed on a new $90 million asset-based credit facility to replace our expiring line of credit and maintain a healthy level of financial flexibility. I'm also pleased to announce that we reached a settlement, subject to court approval, with a long-standing shareholder lawsuit and can now move forward without this distraction. Bryan will speak to the details of both the new facility and the settlement later. Lastly, I want to reaffirm our financial guidance for the full year and reiterate we are on track to be profitable in the fourth quarter of this year. Transitioning to Slide 5. I'd like to outline again exactly what we think it takes to win in our sector. First, we strive to have the best science and products whose access and adoption are enabled by technology in our field. For us, this means having products that deliver value in real-world clinical settings, with high-quality actionable and differentiated tests that help support early detection and treatment decisions. Second, we need to continue to automate, scale, and build cost-effective lab operations to deliver on our mission and grow profitably. Our Labs of the Future strategy allows us to improve workflows, test turnaround time, and reduce costs through advanced technology and automation. Similarly, the investments we are making to modernize our IT platform will allow us to better serve our patients and provider partners at scale across all products and channels at lower costs. Third, a strong commercial platform ensures that our providers and patients benefit from partnering with Myriad Genetics, enabling us to grow efficiently. Finally, to win, we need best-in-class regulatory and revenue cycle management capabilities. Great science used to develop practical, high-quality diagnostic tests, operating in state-of-the-art facilities that reduce costs with the ability to receive payment for our efforts is key. Our payer markets team, with deep industry experience, continues to play an integral role in this and the development of our product pipeline, as well as our commercial reimbursement strategies. We see this as a competitive advantage. With that, I'll turn the call over to our Chief Commercial Officer, Mark Verratti, to speak to our commercial capabilities in more detail.

Thanks, Paul. I'd like to start on Slide 7 and talk about our commercial team. We have made great strides in our commercial execution over the past year with changes made across the organization that enabled our sales force to effectively target and penetrate both new and existing accounts. The results speak for themselves, with robust volume growth over the past four quarters, the majority of which are coming from existing accounts. This gives us confidence in the changes that we've made to the commercial team because growth in existing accounts means that tailwinds like market dislocation have not been the key drivers of our commercial performance. With that said, dislocation in select markets that Myriad operates in is starting to get noticed by our providers as peers in our industry struggle with everything from lengthening turnaround times to decreasing quality of service. A true driver of our volume growth is our skilled and focused sales force with years of experience in Myriad, working alongside providers and their patients, equipped with new digital tools and scientific insights that help them better serve our current customers while adding new accounts every quarter. We'll now turn to Slide 8 and talk about our core business units. Our oncology business delivered $80.7 million in revenue in the second quarter. Reported test volumes were roughly 52,000. Hereditary cancer testing volumes from our oncology sales team grew 18% year-over-year after growing 16% in the first quarter of the year. Prolaris, our market-leading prostate cancer test, continues to reach patients diagnosed with prostate cancer to provide them and their physicians with important information needed for better treatment decisions. In the second quarter, Prolaris volumes grew 13% year-over-year. Myriad is making strides with Precise MRD as we are working with researchers at the MD Anderson Cancer Center, using our high-definition MRD testing platform to inform treatment selection, surveillance, and response for individuals with metastatic renal cell carcinoma. There is a significant lack of non-invasive testing platforms for this patient group. While most MRD tests monitor 50 or fewer variants from a patient's tumor, Myriad's MRD assay can track thousands of variants using our whole genome approach for higher sensitivity. With improved operational efficiencies paying dividends, a high Net Promoter Score amongst oncology providers, and a fully equipped sales force, we anticipate continued strong growth from our core oncology tests. We'll now move to women's health on Slide 9. The Myriad Genetics women's health business serves women of all ancestries by assessing the risk of cancer and offers prenatal testing solutions for those who are pregnant or planning a family. In the quarter, hereditary cancer testing volumes in women's health increased 21% year-over-year, marking four consecutive quarters of positive volume growth. This strong momentum is driven by competitive account wins and increased adoption by providers of myRisk for patients whose family history puts them at a higher risk for cancer. In prenatal, we are pleased to report a 12% increase in quarterly test volumes compared to Q2 of last year. This figure excludes any contributions from our recent acquisition, Gateway Genomics. Also, in the quarter, we are proud to announce that we have reached over 1 million patients who have taken our Prequel non-invasive prenatal screening test. Let's move now to Slide 10 and talk about mental health and GeneSight. Mental illness continues to have a lasting effect on patients and their families in the US, as those suffering fail to receive proper medical treatment. GeneSight helps physicians better understand how antidepressants and other drugs will affect their patients. Importantly, for this patient group, the test can be performed with a single cheek swab sample that can be taken in the privacy of their home. In the second quarter, GeneSight broke another all-time quarterly volume record with 117,000 tests processed in Q2, up 23% over the prior year, as we have added approximately 4,000 new clinicians to the franchise during the quarter. Myriad continues to build on GeneSight's solid foundation of clinical data, including a collaboration with Optum Genomics to create a multiphase study designed to better understand GeneSight's ability to improve clinical outcomes and reduce overall healthcare costs. We believe that the ongoing success of GeneSight further demonstrates the effectiveness of our new commercial capabilities, digital marketing strategies, and focus on the patient and the provider. I'll now pass the call over to our Chief Operating Officer, Nicole Lambert, to talk about our operations.

Thanks, Mark. I'll begin on Slide 12 and give an update on our laboratory operations team. Thanks to our commercial customer service and laboratory operations teams, we grew volumes over 17% and reduced COGS by 6% in the quarter despite a challenging operating environment. Our lab operations team has shown tremendous resilience against these challenges, including a complex upgrade to our genetic sequencing platform, a successful FDA inspection of our Salt Lake City lab, and the beginning of our lab move in Salt Lake City and South San Francisco. After some technical challenges in our myRisk lab in early Q2 that impacted our turnaround times, our average lab turnaround time across the enterprise has returned to approximately 5.5 days. Turnover is also down to 9.6%, half of what it was in 2021, and our employee engagement scores are up to 61%. We announced last quarter that we are a certified great place to work, where over 86% of our employees voted us a great place to work. Our Net Promoter Score among providers remains strong between 63% and 84%. We also announced in Q1 that we have started sharing data with ClinVar. Providers and genetic counselors have been quite vocal about the importance of working with ClinVar, and 81% of the providers that were asked are aware of our partnership, with 13% saying they now have a more favorable view of Myriad. We encourage providers and counselors to share their thoughts and opinions with us because we are listening and we want to hear their feedback. Turning to the next slide. We have begun our transition to our new Labs of the Future, both in Salt Lake City and South San Francisco, which will be unveiled at our Investor Day on September 19th. In July of this year, the FDA conducted an inspection of our Salt Lake City laboratory, which focused on the quality systems related to myChoice CDx and BRACAnalysis CDx. We're excited to report that the inspection was successful with no deficiencies. Our new facilities not only create a more cost-effective approach to running tests, but they foster an environment of innovation and collaboration among our commercial and enterprise support and our scientific teams. Our operating expenses and capital expenditures as they relate to the labs of the future are expected to decline over the next few years as we start to settle in and operate our businesses from those new facilities. I'll now turn to Slide 14 and talk about the progress of our EMR integrations and our unified order management system. Here, we can see the tremendous progress that we have made working with clinics using EMR integrations to deliver more test results for our myRisk hereditary cancer test. Our EMR integrations with the likes of Epic and others not only help us get patient medical records from providers, but also mean that providers who are already in those EMR systems do not have to provide those documents to us in addition to their normal workflow. We are pleased with the ongoing rollout of our new unified provider portal and our unified order management system, which not only help us get the information required by payers but make it easier for providers to order tests from us, reducing the number of times we need to recontact them. We talk a lot about making it easier to do business with Myriad Genetics, and our operational initiatives revolve around improving the customer experience. EMR integrations and unified order management are examples of how we are doing exactly that. I'll now turn the call over to Bryan to discuss financial highlights in the quarter.

Thanks, Nicole. I want to begin by discussing product volume trends. In the second quarter, our organic volumes increased by 17% compared to last year, marking four straight quarters of double-digit volume growth. This growth was primarily driven by a 20% increase in hereditary cancer testing and a 23% rise in GeneSight volumes. Prolaris had a 13% increase in quarterly volume compared to the same period last year, while prenatal volumes, excluding SneakPeek, grew by 12% year-over-year. Overall, we saw broad-based volume growth across our portfolio. Now, moving on to total revenue. The second quarter of last year included roughly $12 million in positive out-of-period adjustments, which were negligible this year. Without these adjustments, our revenue for the second quarter was $183.5 million, representing a 10% growth year-over-year, and our third consecutive quarter of double-digit revenue growth, driven by consistent volume growth and effective execution of our commercial strategy. Like many in our industry, we faced challenges in our revenue cycle during the second quarter due to the transition of several Blue health plans to a new claims administrative process. This change left many health plans unprepared for the complicated preauthorization process, which affected providers' ability to secure necessary preauthorizations for patient testing and reimbursement. This transition created a revenue headwind of approximately $4 million during the quarter. As of now, we see most of these system issues have returned to normal, though some effects have spilled into Q3. We are also negotiating with several large payers regarding payment for claims that we believe should have been processed, although we currently do not have enough validation to recognize that revenue. Despite these payer challenges, our average revenue per test remained flat compared to Q1 of 2023. Now I'll discuss operating trends from the quarter and year-to-date. The healthy growth across our business units reflects the improved execution of our motivated commercial team, as well as our investments in core infrastructure and customer experience. We mentioned in Q1 that our adjusted operating expense would decrease in Q2 due to tighter cost controls and the subsiding of certain sales and marketing costs. Q2 did reflect this, with adjusted operating expenses at $133.4 million, a decrease of $11 million sequentially. Managing operating costs continues to be crucial for our path to profitability in Q4. Turning to our liquidity and cash flow, we are pleased to report an adjusted operating cash flow of $5.9 million for the quarter. Our balance sheet showed $127.8 million in cash at the quarter's end, which includes about $40 million drawn from our new asset-based credit facility. I’d like to elaborate on changes to our capital structure since last quarter. We previously indicated that our revolving credit facility was set to expire in July. This facility, established in 2016, was cash flow-based. Due to our lack of positive cash flow and profitability, we struggled to use it effectively. To enhance liquidity, we transitioned to a new asset-based credit facility, with availability now linked to our accounts receivable rather than cash flow. This new facility has been made possible by three banking partners: JPMorgan, Wells Fargo, and Bank of America. At the end of June, our accounts receivable allowed us an additional $23.5 million of cash from this facility. As indicated in our cash flow statement, we are experiencing positive adjusted operating cash flow, and the capital requirements for our new labs are largely behind us. Additionally, we have agreed to settle a shareholder lawsuit, pending court approval, related to alleged misrepresentation and disclosure issues from 2019 for a total of $77.5 million. We will pay $20 million in cash next quarter, while the remaining $57.5 million will be settled in early 2024, using either cash or equity, with a stronger emphasis on cash. For instance, if we opt to pay an additional $30 million in cash, the remaining $27.5 million would be paid via Myriad's stock, equivalent to about 1.3 million shares or 1.5% of total outstanding shares at a $21 price per share. We have positioned ourselves with financial flexibility in how we handle the final payment from our operating cash flows and current cash. We will also continue to explore various financing options, including the potential expansion of our ABL credit facility as the year progresses. Now, we are reaffirming our full-year revenue and non-GAAP financial guidance and reiterating our earlier target of achieving positive adjusted operating cash flow and profitability in the fourth quarter of this year. I'll now hand it back to Paul for closing remarks.

Thanks, Bryan. As you've heard, we've had a lot of exciting organizational changes happen this year, but we remain focused and confident in reaching profitability in the fourth quarter. Balancing growth and innovation while keeping an eye on profitability is an ongoing challenge and opportunity, but we are continuing to be committed to it. In closing, I'd like to offer what we believe are our strengths and strategic advantages. First, we continue to grow volumes and revenues consistently every quarter across our businesses, and we get paid for the tests that we offer. Second, we have a disciplined cost management structure as we expect to maintain our strong gross margins and manage our operating expenses as we did this quarter, responsibly. Third, we are committed to effective capital deployment in key areas that will improve the customer experience, including new tech-enabled tools and capabilities, product innovation, our commercial capabilities and our lab of the future. Fourth and finally, our growth catalysts are clear as we continue to elevate our products to their full potential, launch new products, and opportunistically look for strategic tuck-in acquisitions. All of this reinforces our position as a trusted, differentiated lab with specialized expertise, best-in-class quality, a strong, scalable commercial engine underpinned by data, research, and technology with industry-leading margins and business management. Keeping patients and providers at the center of everything we do is starting to pay dividends, and we are excited about finding new ways to make it easier to do business with us. Everything from increased price transparency and affordability for patients to the rollout of initiatives like our EMR integrations with Epic and our unified ordering portal, along with improvements to Myriad Complete, our customized suite of services and workflow solutions. And now I'll turn it back to Matt for Q&A.

Thanks, Paul. And as a reminder, during today's call, we used certain non-GAAP financial measures. A reconciliation of the GAAP to non-GAAP financial results and a reconciliation of GAAP to non-GAAP financial guidance can be found in our earnings release and under the Investor Relations section of our website. Now we are ready to begin our Q&A session. To ensure broad participation, we're asking participants to please ask only one question and one follow-up. Operator, we're now ready for the Q&A portion of the call.

And your first question will come from Matt Sykes with Goldman Sachs.

Paul, maybe first, you made some comments about the market share gains in women's health. Maybe could you kind of talk a little bit about that market, the share dynamics there and then what is your kind of view on the duration of the market share gains that you can achieve just given the dynamics in that industry right now?

We're really pleased by the progress we're making. As Mark said, I think we're in the early innings here. First, as we've commented on that, we think adoption rates are still low. We saw a nice increase in adoption rates for prenatal testing when we moved to average risk. We believe there will be an expansion of guidelines around carrier screening soon. Our hereditary cancer and myRisk testing opportunity for unaffected patients is a huge opportunity for patients and for us to continue to grow. So we're really excited about that platform. It is a market that others are really struggling to find a path to profitability, but we are on the verge of profitability in women's health, and we have a clear path to that. The leverage in women's health for us is pretty significant as we continue to grow. We see a lot more opportunity for market share gains as well as broader adoption as we come out of the pandemic.

I have two quick questions. Bryan, you mentioned spillover from the administrative changes into Q3. Could you quantify that? Also, regarding the Lab of the Future, I noticed on the slide that it is expected to achieve a 67% reduction in COGS. Can you explain how the cost reductions will be phased as the Lab of the Future is implemented?

I think with respect to the first question on the spillover, it was a system conversion that took place really at the end of Q1. So we had a full quarter. Thinking about that $4 million, that was a full quarter. As of today, we're largely back to normal in terms of the processing issues. It would be significantly less than $4 million as we look at the next quarter. We tried to capture it, providing some additional detail in our deck regarding our profile in the remainder of the year as we track towards our full year guidance and profitability goals. That slide sort of captured how we would expect to see general seasonality impacting Q3 and a strong recovery as we get into breast cancer awareness month and some other things in Q4. So that would be my take on that.

Look, on the second piece, Matt, you and I have talked about this. We're certainly striving for more gains in gross margins and we do see the opportunity as we automate and move into the new labs. Our teams are thrilled. We were in San Francisco altogether last week. The space affords us, when you think about time and motion studies and the ability to get work done and process, we're excited about it. But we expect to maintain gross margins of 69%-70%, net of inflation and the increased regulatory burdens that we see and expanding panels as our tests become more complicated. Our R&D and lab teams have done an incredible job. There is a lot of leverage if we can continue to grow the top side of this company by 10% or more. We're working towards that while also mitigating payer noise, maintaining those margins, and managing OpEx effectively. The EPS and cash flow leverage is significant as we go into '24 and '25. Nicole and the team did a great job lowering COGS in the quarter. We expected to do that a little bit because of seasonality. Given the lab moves, NGS sequencing, CLIA surveys, FDA surveys, and a 17% growth in volume, I'm not sure if I could expect much more than what we got this quarter.

The next question comes from Andrew Cooper with Raymond James.

Maybe first, going to stick with one on gross margins here. If we do the math on that $4 million, assuming you did run all those volumes and just not get paid, kind of put your gross margin north of 71% for the quarter. I guess just help me think about, is that the right way to think about things? When we think about the guide, it seems like that maybe implies a little bit of a step back from that sort of adjusted number. But just help me think about the moving parts through the back half of the year on the gross margin side?

I believe we conducted the test and it could have provided a boost, but there are various factors to consider when analyzing the numbers. Regarding the $68 million to $70 million, we expect it to vary throughout the year. We remain confident in maintaining a gross margin around 70%. I don't think I would clarify it further than that.

Andrew, I think what we're most encouraged about as we move into the third quarter, and especially the fourth quarter—which is our strongest quarter—is that we are not experiencing the typical seasonal dip in volumes. We are actually growing through that, which is significantly impacting our gross margin. The challenges with payers are frustrating, but we are skilled at managing those issues, and we anticipate some positive developments in the latter half of the year. As Bryan mentioned, addressing this situation is crucial. The payers have made prior authorizations and the administrative aspects of our operations more challenging. We are engaged in serious reflection on how we can enhance our performance by utilizing AI and other tools. However, as Bryan noted, we need to concentrate on the growth drivers and cost management. Additionally, the decrease in operating expenses from one quarter to the next is something we promised, and we are diligently working to fulfill our commitments. We are in a strong position to achieve that in the latter half of the year.

And maybe just one more from me. I don't think you went into too much detail on kind of anything on new products still to come. So maybe just can you confirm timelines or if there are any updates to the FirstGene MRD RUO launch and others in the Precise portfolio, if those are on track or anything else we should be contemplating in terms of timing?

Happy to talk about it a little bit. We'll spend some time at our Investor Day talking about that, and hopefully, you and others can attend and get insights from our product management team. We're much more focused on launching with a go-to-market strategy that we think will win and be differentiated. Generally, everything is on track. We are working on carrier screening panel expansion ahead of guidelines, which is important before the first three months. We need to get that done – more flexibility around our myRisk panel. We’re continuing to look at how to position our products. Regarding MRD, we're enthusiastic. We are processing samples for Memorial Sloan Kettering and are close to announcing some other clinical validation studies. We'll get into more detail, but regarding our three-year growth path, FirstGene MRD is not a big contributor to that, but we will have information to discuss at the Investor Day.

The next question comes from Daniel Sammarco with TD Cowen.

Quick question on GeneSight, grew 22% this quarter to 117,000 volumes. How should we think about performance for the remainder of the year? Should we be looking at any additional payer announcements in the near future? If you can provide any timeline on additional publications supporting the utility, that would be great too.

Regarding GeneSight, you've seen almost eight or nine quarters of double-digit growth. Given the new providers that we're adding every quarter, we expect to continue to see strong volume growth for GeneSight. Regarding new clinical data, we expect to announce some clinical data at the end of the year, in the second half. We'll continue to see new data coming out at the beginning of next year. I don't expect any slowdown related to the GeneSight franchise.

To the second part of your question, we've had some preliminary readouts from our study with Optum Genomics on the clinical utility, which indicates that GeneSight is an effective tool to reduce psychiatric hospital days and emergency room visits. This is real-world data that shows the effectiveness. We've continued to receive confirmatory results through meta-analysis work. We've had a number of states, specifically three, pick up the PLA codes, and we are generating revenue from that expansion, including fee-for-service Medicaid plans and some managed Medicaid plans. We're making progress with additional commercial payers. We had hoped to announce something this quarter, but it's taking a bit longer. However, we expect to announce several additional commercial coverage before the end of the year, along with more coverage from different Medicaid plans. A source of frustration has been that many of the Medicare Advantage plans, who are required to cover GeneSight, are not paying. We're stepping up our efforts with our payer markets and revenue cycle teams to address this situation. We see upside in ASP for GeneSight in the remaining half of the year, as well as for next year.

We have another question coming from the line of Jack Meehan with Nephron Research.

Bryan, I wanted to start with what's your expectation for free cash burn in the second half of the year? And could you just call out some of the one-timers we might be looking for, like the legal payment?

Jack, we had a slide in the deck and a section in the press release where we discuss liquidity as well as the payment coming out for the legal settlement and our CapEx and cash flow expectations to give you a view on where we think we’ll end the year from a cash and availability on the credit line perspective. That should answer your question in the release.

It's pretty much a detailed breakdown, Jack, so it should be clear. The thing I would underscore is the settlement as well as our ability to access other capital remains. We have a lot of financial flexibility. We have till Q4 to complete the settlement, utilizing a number of different levers, whether expanding the ABL or otherwise. There is a clear walk-through on Slide 19 regarding losses to detail how we could get there.

And based on the way things are trending with Gateway with SneakPeek, would you expect to make the $32 million milestone payment in 2024 there as well?

Unfortunately not, but if they were meeting all their metrics, we would be willing to pay it. They have the option to receive payment later. Currently, their volumes are stable. We are beginning to see an increase in the attachment rate for NIPS testing. We will have more announcements regarding advancements around SneakPeek and new channel opportunities at Investor Day. They are managing costs effectively, but their volume remains flat year-over-year at this point. However, we’re still less than a year into it, and we are pleased with the integration and its progress. I believe we will observe more momentum as the year continues.

One last one. The FDA is about to release new rules as it pertains to LDTs. I was curious if you've had any recent discussions with them about GeneSight and how you think these rules might impact Myriad?

I'm not sure if I could be any clearer, but I will restate this. We have not had any exchanges or inquiries from the FDA about GeneSight since 2019, and we don't expect the FDA to inquire about GeneSight. Most of the FDA's focus and our associations engaged in these discussions are primarily related to at-home testing for COVID and other things they view as high-risk. We're not concerned, nor do we have any new information since 2019 regarding concern from the FDA on GeneSight.

There are no further questions pending. I'll turn the call back to Matt Scalo for closing remarks. Thank you.

Okay. This concludes our earnings call. A replay will be available via webcast on our website for one week. Thank you again for joining us this afternoon, and see you at our investor event in September.

And all that does conclude the conference call for today. We thank you very much for your participation. You may now disconnect your lines.