Hello, and welcome to the ResMed Second Quarter Fiscal Year 2024 Earnings Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Chief Investor Relations Officer, Amy Wakeham. Please go ahead, Amy.

Great. Thank you, Kevin. Hi, everyone, and welcome to ResMed's second quarter earnings call for fiscal year 2024. We are live webcasting this call and the replay will be available on the Investor Relations section of our corporate website later today along with a copy of the earnings press release and presentation, both of these are now available. During today's call, we will discuss several non-GAAP measures that we believe provide useful information for investors. This information is non-intended to be considered in isolation or as a substitute for the GAAP financial information. We encourage you to review the supporting schedules in today's earnings press release for a reconciliation of these non-GAAP measures to the GAAP reported numbers. In addition to our discussion today, it will include forward-looking statements, including, but not limited to, expectations about our future financial and operating performance. We make these statements based on reasonable assumptions. However, our actual results could differ. Please review our SEC filings for a complete discussion of the risk factors that could cause our actual results to differ materially from any forward-looking statements made today. I'll now turn our call over to ResMed's CEO, Mick Farrell.

Thanks, Amy, and thank you to all of our shareholders for joining us today. Our second quarter fiscal year 2024 results reflect strong execution across our entire business, driving double-digit top and bottom line growth. These results are a testament to the incredible efforts of the global ResMed team. Our results were driven by double-digit global growth in both devices and our Software-as-a-Service business together with high single-digit global growth in our masks and accessories business, holding our leading market share amongst high comps from the same quarter a year ago. In terms of bottom line leverage, our reorganization efforts and efficiency efforts in the quarter have set us on a clear trajectory of profitable growth. Taking a step back, all 10,000 ResMedians are energized about the opportunities in front of us. There are over 2 billion people worldwide suffering from sleep apnea, chronic obstructive pulmonary disease, respiratory insufficiency due to neuromuscular disease or insomnia. These chronic conditions form a healthcare epidemic in which ResMed is uniquely positioned to help. We believe that healthcare should be delivered in the lowest cost, lowest security and highest comfort location possible. Very often, that is a patient's own home. Our end markets remain underpenetrated with many opportunities to add value, reduce friction, lower costs and improve patient outcomes. We support hundreds of millions of people as they take control of their healthcare journey and navigate the complex healthcare world outside the hospital system. ResMed is the global leader in digital health solutions with over 17 billion nights of medical data in the cloud and over 23.5 million 100% cloud connectable medical devices sold into over 140 countries worldwide. We are the clear market leader in sleep apnea, a huge and growing market with over 1 billion people impacted globally. Our category-leading flow generator…

Great. Thanks, Mick. In my remarks today, I will provide an overview of our results for the second quarter of fiscal year 2024. Unless noted, all comparisons are to the prior year quarter and in constant currency terms, where applicable. We had strong financial performance in Q2. Group revenue for the December quarter was $1.16 billion, a 12% headline increase and 11% in constant currency terms. Revenue growth reflects the ongoing combined availability of AirSense 10 and AirSense 11 sleep devices to support solid underlying global demand and continued growth across our mask portfolio. Year-over-year movements in foreign currencies positively impacted revenue by approximately $11 million in the December quarter. Looking at our geographic revenue distribution and excluding revenue from our Software-as-a-Service business, sales in U.S., Canada and Latin America countries increased by 9%. Sales in Europe, Asia and other markets increased by 12%. Globally, device sales increased by 11%, while masks and other sales increased by 9%. Breaking it down by regional areas, device sales in the U.S., Canada and Latin America increased by 7%, masks and other sales increased by 10%, reflecting growth in resupply and new patient setups. In Europe, Asia and other markets, device sales increased by 16%, again, reflecting strong demand and significantly improved availability of cloud connected devices. Mask and other sales increased by 4%, reflecting the impact of a strong prior year comparable growth rate. Software-as-a-Service revenue increased by 24% in the December quarter, reflecting the contribution from our MEDIFOX DAN acquisition, and continued strong performance from our HME vertical. Excluding our MEDIFOX DAN acquisition, SaaS revenue grew by 10% in the December quarter. MEDIFOX DAN contributed revenue of $28 million in the December quarter, consistent with our expectations at the time of the acquisition. Note as we have now passed the first…

Great. Thank you, Brett, and thank you, Mick. Let's go ahead and turn to the Q&A portion of our call. Kevin, I'd like to turn it over to you to provide the instructions and then run this part of the call.

Certainly, we'll now be conducting a question-and-answer session. [Operator Instructions] Our first question today is coming from Margaret Andrew from William Blair. Your line is now live. We do ask you ask limit yourselves to one question please.

Great. Thank you very much. Good afternoon. Good morning to everyone on the call. I wanted to maybe follow-up on your comments on GLP-1, even more so than the quarter. And I look at that 10% greater likelihood of folks starting CPAP when you're on a GLP, it seems like it could have a pretty meaningful impact for growth. And again, looking at it to say, if you're going from 75 patient new starts in a given period to 85, that's a 13% bigger market every year. So I guess conceptually, is that something that you agree with? Would it have a greater or less benefit impact if that trend continues? And I guess any comments on a real impact is over the next three years as GLP adoption grows? Thanks.

Yes, Margaret. Look, it's a great question. And as a biomedical engineer, I look at this, and I don't know causality, I just know the correlation. And so we've now got data, the 529,000 data points that show that there's a 10% higher propensity to start PAP therapy if you prescribe the GLP-1 before and then you get the PAP therapy, 10 absolute percentage points higher of the cohort will start PAP therapy. My thought is that this is a more motivated patient, a more engaged patient in the health care system, and they've been brought in by this new therapeutic tool. And so I do think that it will lead to greater growth. This megatrend of GLP-1s will lead to greater growth of patients coming into our treatment pool over time. And certainly, the data is showing that with that cohort of patients. Yes, your quick math there of an increase, I think, is that if there's full penetration across the whole patient cohort and full adoption GLP-1s across every patient coming through. Of course, that's the maximum state. But I think realistically, as we see this pretty fast rollout of this new pharmaceutical class, we will start to see more patients come into the health care system. Everyone is seeing that across medtech and across health care. They are more engaged and they do seem to be getting prescriptions for many different chronic diseases. Sleep apnea is non-exception. And we've got probably one of the highest number of patients in that cohort of over 0.5 million patients that we're tracking. And of course, we've got 26 million patients in our database. So this is a minority of patients that we're seeing on these, but it is interesting within that cohort to see a higher participation rate. Look, our goal will be to leverage that megatrend and to make sure that ResMed is there with the best tools for screening, diagnosis, treatment and management. And we've done that over decades, and we plan to do it ahead. I think maybe the consumer big tech trend of sleep wellness tracking might be slightly higher in its impact over time, maybe not as quick adoption, but these sleep wellness tools come across all consumer tech applications is incredibly exciting. ResMed's goal is there to leverage this demand gen that's coming to us from Big Pharma and big consumer tech, but then more importantly, to get that personalized health journey so that ResMed can be truly the concierge for that person if they find their path to better sleep and better health. So we do expect these trends to be positive. They won't be immediate. And our job is to drive it over time.

Thank you. Next question is coming from Anthony Petrone from Mizuho Group. Your line is now live.

Thank you for taking my questions. Congrats on a good quarter here. Maybe Mick will stay on GLP-1s, we're getting a lot of attention turning toward the Eli Lilly SURMOUNT-OSA study. And maybe the KPIs that you're looking for in that study how relevant do you think the primary endpoint is? Are there other secondary endpoints that are more important? And do you think over time you can collaborate with Lilly to drive the effort of using CPAP with the GLP-1? Thanks.

Yes. Thanks for the question, Anthony. And it's a really pertinent one. Certainly, we're watching this SURMOUNT-OSA trial. It's a pretty small trial. It's less than 500 patients, 500, 600 patients, I believe. So it's not sort of the order of the real world event, real-world data that we have, like 500,000 patients we're talking about there. But I think it will be very interesting to see the presumption is given it's the same biochemical compound as in other trials used for diabetes treatment and weight loss that it will have somewhere in the order of 10%, 20%, maybe even 30% weight loss reduction in this cohort. So that's a metric that's sort of well-known from prior studies. The best evidence from the primary investigator on this Professor Atul Malhotra from University of California, San Diego. His assessment is that, that should lead to pretty significant AHI reductions in the treatment cohort versus placebo, maybe in the order of to maybe 65% AHI reductions in the cohort of these quite high BMI and quite high AHI patients. If you listen to a great podcast between Professor Malhotra and Dr. Carlos Nunez, our Chief Medical Officer, which are available on our website. When you've got to spare 45 minutes, but there are some cliff notes that I think are worth sharing here in this investor call is that Professor Malhotra was asked what's the best therapy to treat sleep apnea. Is it, a, weight loss? Or is it b, CPAP. And he said, "Well, that's a false dichotomy, this question, it's a false competition. It's a plus b. It has been for decades and will be for decades in the future. And as a PI on that study, he says, look, we have a new pharmaceutical agent that's going to help…

Thank you. Next question is coming from Mike Matson from Needham & Company. Your line is now live.

Yes. Thanks for taking my question. I guess I'll just ask one on Philips. So I think they've talked about relaunching their flow generators in some of the OUS markets, just curious what you're seeing there? Have you seen that happening? And have they been able to recapture share anywhere?

Yes. Thanks for the question, Mike. And yes, certainly in tens of countries in Europe and Asia. We are in full competition with all the global players, including the company you mentioned and the large regionals from Europe and from Asia and have been for many quarters. So they've come back in masks and devices across tens of countries in Europe and Asia. And their goal there when they come back, if they've been out for a year or two, depending on the time they're out of each market is to fight their way from the bottom. They've got zero percent new patient start share when they first come back in and they're trying to fight their way up. And in general, they had to fight against the number two, the number three and the number four player who don't have like ResMed has the leading technology, the best AirSense platform, right. The AirSense 11 globally is the best platform in all 140 countries. The second best platform in, I would say, all 140 countries is the AirSense 10 platform. So their goal is to then fight against regional player from Europe with the number three or a regional player from Asia, with the number four in the country that they're coming back. And so we're seeing that country by country. We're seeing them fight for that share at the low end. It's our focus as the market leader is on growing the market. And I think they're a fair competitor. We've competed against them for decades since they bought Respironics. And in general, we've won and taken share. We were winning and taking share from them in 2019. We're winning and taking share from the 2023 and 2024 as they come back country by country. And if and when they come back to the U.S. marketing devices, by the way, they're already here on masks, never left, and we've been competing and leading them there. I look forward to them coming back to the U.S. market so we can get any stock overhang away about what's it going to look like and what it's going to look like is what it looks like in all the other tens of countries where they fight for share from the bottom and work their way up. And I look forward to competition, a healthy competition. And we seem to do very well in it because we've got the smallest, quietest, most comfortable, most connected and most intelligent solutions, and it's really about that. It's about the value you provide getting that patient to the right care, lowering the cost and improving adherence. And we've done a great job, and I like all global competition in the space.

Thank you. Your next question is coming from Suraj Kalia from Oppenheimer. Your line is now live.

Hey, Mick, can you hear me all right?

Got you loud and clear, Suraj.

Congrats on the nice quarter. So Mick, in the 2030 operating model, right? If I got your commentary right, ResMed brand and profitability, velocity of product control some of these things that you highlighted, I guess, way does Compliance Coach fit within the 2030 strategic model? More specifically, I'm just trying to understand how do you measure the ROI in the Compliance Coach. And I presume this is going to be a primarily a reactive AI model. Any additional clarity would be great? Thanks.

Well, thanks, Suraj. I could spend the rest of the time answering that call around the 2030 operating model. I'll just briefly talk about it and then talk specifically about Compliance Coach. Our 2030 operating model, yes, it's the three tenets, right? The three tenets product-led, customer-centric brand enhanced. ResMed has always been product led, but now we have a Global Chief Product Officer, whose sole role is to curate that product portfolio with an amazing team of hundreds of engineers and marketers to bring the great innovation to market. So we'll measure the success on that on product velocity, how quickly do we bring innovation to market, time to market, time to success. Customer-centric. We've always been customer-centric. But we have always done the best of analyzing the Net Promoter Scores of patients, Net Promoter Scores of physicians, home care providers. Physician payer providers and so on. So really understanding the marketing metrics around that, having our first Chief Marketing Officer sit at the top table and really be laser-focused on those NPS scores and driving them up and really valuing the multibillion-dollar ResMed brand and enhancing that over time. And the third part around focusing on profitable growth and driving that leverage with our first Chief Revenue Officer, it's really around that profitable growth. And if the title was used broadly, I would call it the Chief Profitable Growth Officer rather than Chief Revenue Officer, but really, it's around keeping that discipline on the great growth we've had on the topline, but ensuring we get that leverage through OpEx R&D and particularly on SG&A in the new world to do things differently with tech. And that segues into the second part of your question, Compliance Coach. Yes, look, this is a great AI tool. By the way, it's…

Thank you. Next question is coming from Steve Wheen from Jarden. Your line is now live.

Yes. Good morning. Just a question for Brett. Brett, I was just wondering if we could look into the gross margin a little bit further and trying to understand, are we seeing in – across that quarter, the full benefit of the price that you've taken? Or is that some annualization effect as some customers perhaps roll off contracts and whether or not from a rate perspective, could you just kind of reiterate what your expectations are there, what you're seeing with regard to the pricing following the conflict?

Yes. Sure, Steve. So yes, I mean, on the gross margin and recent price increases we put through during the quarter, some of those are obviously be contractual arrangements there as well. So we've put some – some of it's gone through as a general increase, and then there will be specific contractual arrangements that means those pricing will be a little bit progressive. I guess if you look over the back half of fiscal 2024 on that. So let's call that be kind of progressively roll through. But we're definitely seeing some of that impact already on that. I think the second part of your question was around – is that around the sort of freight Red Sea disruptions and so on?

Yes. Just what you were sort of intimating, if you could just repeat that commentary, what you're seeing in the market and how you actually are trying to anticipate or protect yourselves against that?

Yes. Yes. So we're definitely seeing the impact there and a lot of that shipping is obviously not going through the Red Sea, but then going around kind of good hope. So that's happening certainly increased lead times, I think, probably you could be looking at two to three weeks on that. Particularly, this is a particularly trading to Europe in particular, but also to some extent, to the U.S. where you've got to find alternate freight paths, if you like. So that's having an impact. And we're also seeing some increase in actual freight rates as well. And I think this is an industry wide not just ourselves. So we're looking at that closely. We're looking at alternative routes. We're looking at multimodal distribution there. So there's a number of things we're looking at to mitigate that where we can. But it realistically probably see some uptick in freight cross. It would not manifest in our P&L in Q3, but there could be some headwinds in Q4 on that. But again, I think we've just got to see how that evolves over the next little while.

Thank you. Next question is coming from Saul Hadassin from Barrenjoey Capital. Your line is now live.

Thanks. Good afternoon, good morning. Just another question for Brett. Brett, just regarding the restructuring charges and also the charge for the Mask recall. Is that done now in terms of those P&L costs? Or do you expect any further costs to be incurred in third quarter or indeed fourth quarter this fiscal year? Thanks.

Yes we’re largely through that. I mean, I can't – I don't think you can rule out restructures from time to time, but I think the material restructure that we did is behind us now. So going – anything going forward, I think, would be pretty minor on that. So I would say – I'd characterize that as saying, yes, we've done the big restructure, and that should clear us now for the next…

Just to jump in there, Brett, a little bit specifically to Saul's question about the mask with magnets upgrade of our labeling, which was classed as a recall in the U.S. and some other jurisdictions. That cost was fully taken account of in this quarter. We're not expecting to add anything more on the mask with magnets action relabel and recall in certain jurisdictions.

Yes, absolutely.

Thank you. Next question is coming from Mathieu Chevrier from Citi. Your line is now live.

Good afternoon. Thanks for taking my question. Simple one, when do you expect to be fully transitioned the AirSense 11 platform?

Mathieu, a very simple question, but rather complex answer in that we sell in 140 countries worldwide, and each of them most of them have their own regulatory pathway and often very different and complex and obviously, labeling language customization of the product for all regulatory requirements needed in all those 140 countries. So we clearly launched in our top countries were launched in the U.S. many countries in Europe. We just got Japan last quarter, the quarter before and we're starting to ramp up there. And you saw that in the good growth numbers in devices in Europe, Asia and other in the quarter of 16%, there was some good sort of starting that ramp there in a place like Japan, which, as you know, is a fleet driven market versus a by-quarter driven market. And so great to see Japan – the citizens of Japan to be able to get access to the best in the world technology in the AirSense 11. But look, we've got hundreds of countries – over 100 countries, we still have to go there. And so we've got to get regulatory country by country. And we care about people suffocating in all of those 140 countries in the same way. And so our regulatory and quality team with Dawn Haake, our Chief Quality and Regulatory Officer working intensely with all the regulatory authorities in those countries and we have to ramp that up. And then in addition, we're ramping up supply. The good news is that we have the second best platform in the world in the AirSense 10, and that is completely unconstrained. So you do suffocate and get a prescription in the country that AirSense 11 is not cleared yet, you can get access to incredibly small, quiet and efficacious therapy in the AirSense 10 platform and our best in the world mask platform. And so there's no simple answer to when it will be completely done in 100% in all countries because I think as indifferent to maybe the AirSense 7 to AirSense 8, AirSense 8 to AirSense 9 and AirSense 9 to AirSense 10 generations is that we have a pretty unique situation with our global citizenship here. We are the global leader, and we've got a different responsibility to maintain our second best platform, which is the second best in the world for a little longer. And so that will be out. And I'm not going to give a defined end date now, but I will tell you this. We're going country by country, we're driving regulatory and we're scaling manufacturing as fast as we can on AirSense 11 because it is better technology, is low cost to make, and we are able to have a premium for it in pricing. So it makes sense for us, the customers and for our shareholders.

Next question today is coming from Matt Taylor from Jefferies. Your line is now live.

Hi. Thanks for taking the question. I wanted to ask a follow-up question on the SURMOUNT study. I think you outlined a lot of the high-level stuff there really well. My question is a little more specific. I wanted to ask about what you thought you could see in terms of comparing the two arms of GLP-1 versus CPAP plus GLP-1? Do you think you'll see a difference there what would you make of their results if there is a different one way or the other?

Yes. Thanks for the question, Matt. And so for those of you who haven't read through the nih.gov, feel free to go. But my reading, I'm a visual learner. There's a split chart that the top half of it on the trial is a GLP-1 side and the bottom half is a placebo side. And so they have this 600-odd or less than 600 patients split between those two in a certain proportion. And then within the GLP-1 arm, they split to those on CPAP and those not on CPAP and the same within the placebo. So there ends up being four arms if you look at it. But if you go to the end of it, there's an arm that's placebo, no CPAP. So I'd just call that the placebo arm. And then there's placebo plus CPAP arm and then there's GLP alone arm and GLP plus PAP arm. So you start to get down to the subanalyses, it gets less powered. I actually – I'm reading what you are on nih.gov. So my presumption is at the highest level, they want to show that a GLP-1 is better than placebo for lowering weight and improving AHI. I think they'll achieve that primary outcome. I mean all the data show that there's 10%, 20%, 30% weight loss reduction and that should correlate to significant AI reduction. So I think they'll show that. As opposed to then the sub-studies of CPAP versus no CPAP within each of those, look, we've got 35 years of history knowing that CPAP doesn't half treat, right? I mean, the best that I've seen from weight loss reductions in bariatric surgeries and the best the GLP-1 prelim data is that it can half treat, right? Maybe 50% reduction in AHI. I'd call that half treatment.…

Thank you. Next question today is coming from Lyanne Harrison from Bank of America. Your line is now live.

Yes. Good morning, Mike. So, Mick, Brett, and Amy. I might ask a question about your device and mask sales there. So obviously, strong device sales, your resupply programs, obviously, giving that some focus. But masks this quarter came out weaker than where we expected. Can you talk us through where the disconnect there might be?

Thanks for the question, Lyanne. And yes, really, really happy to take questions and talk about our devices business and our mask business. So look, devices growth globally, incredibly strong in the quarter at 11%. Masks growth globally incredibly strong at 9%. We talk about the market being mid-single-digit growth for devices, so we’re clearly well ahead of that with the launch of AirSense 11 in Japan and Europe, Asia Rest of World and doing well in the U.S. a couple of hundred basis points above. And then in masks and accessory, you talked about global growth being in high single digits. And so beating that in U.S., Canada, Latin America, but what you're probably focusing on is the Europe, Asia and Rest of World growth there in Q2 FY2024 being 4%, right? And just to be clear, the Q2 FY2023 growth in that same category was 14%. And we were taking 500 basis points a share 12 months ago and then losing it this quarter. I really think if you look at the weighted average over that, which is, what, 18 divided by 2 is 9% is sort of more in line with the market growth in that mid- to high single-digit growth of masks there. And look, there's some things around some contracts with the particular countries that were moved from December to January and others. I'm not going to go to all the details other than to say, we look really closely at share. We look really closely at what we're doing. And this 90-day snapshot four quarters ago, which showed 14%. We weren't taking 500 basis points a share. We were holding share, growing in a little – a category here or there. And now this quarter at 4%, we're not losing 500 bps a share. We're actually holding share across that and it's due to some of those shipping areas – launch areas and frankly, a couple of tenders that will move from one month to another. So really not much to see in that. But what I will say is that as we move forward, maintaining that high single-digit growth in devices globally, and the high – sorry, mid-single-digit growth in devices globally and high single-digit growth in masks globally is not a given. We've got to drive that demand. We've got to leverage this Big Pharma trend. We've got to leverage the big tech trend – and we've got to get better at doing demand generation in the areas where we know we can push it up. And so that's what we're going to be focused on going forward. I hope that answers your question, Lyanne.

Thank you. Our final question today is coming from Michael Polark from Wolfe Research. Your line is now live.

Hey, good afternoon. I will ask a mask question as well following up there in a slightly different way. So the U.S. number was up 2% sequentially. Normally, you see a high single-digit increase Q-over-Q kind of year-end seasonality in the U.S. deductible flush, that kind of thing. Kind of what are the puts and takes in that number? And the specific question is, did the Magnet field safety notice kind of limit your ability to fully capture mass demand in the quarter? Or were there other influences? Thank you so much.

Yes. Great question, Michael. So yes, U.S., Canada and Latin America, a 10% growth in the mask in the quarter. It was actually a very strong market growth rate, high single digits, holding share there. We do see that December, particularly for U.S. markets where high deductibles and deductibles reset December 31, some good revenue there. And so we had good comp from the year before, and both solid numbers there from the comp year before this 10% U.S. Canada Latin America growth. So I think we did really well there as we closed out the quarter. In terms of any impact from the masks with magnets update on our labeling class in the U.S. by the U.S. FDA as a recall. I got to tell you, there was no product removed from the market. This was about having our plastic clips as an option, which we scaled up manufacturing and have them as an option. So when a patient is set up, if they're a very, very small minority of people who haven't implanted pacemaker or other metal device in their upper chest or craniofacial area, then those patients are offered an upgrade to the plastic clips. For everyone else, the other 95%, 99% of patients they keep the convenience of the magnet. So that if they go to the bathroom in the night, they can come back in the dark and just clip it on and not have to seek for plastic clips to click together the magnet completely goes on there. And so as we've done that labeling upgrade, and we had a competitor do this similar one about 12 months ago, the market has been very trained in knowing to ask questions about implants to ask questions about our partner's implants. And if they have that to offer the plastics clips, which are fully available on ResMed masks as an alternative to our mass with magnets. The masks with magnets are so convenient. They're doing so well and for 99% of people, they're great. For that 1%, the HMEs are very comfortable now to ask those questions. And the other 140 countries we are working through the appropriate ways to ask the questions and get people the best mask and have the best fit and drive the best adherence over time. But they had no impact on the quarterly sales whatsoever. And we don't expect an impact going forward because this was an upgrade to a labeling that was actually in line with clinical practice over the last 12 months. And it just makes sense to do that. Thanks a lot for the question, Michael.

Thank you. We reached the end of our question-and-answer session. I'd like to turn the floor back over to Mick for any further or closing comments.

Thanks, Kevin, and thank you again to all of our stakeholders for joining us on this call. The opportunity in front of us is huge and largely untapped. It's an incredible runway. We see more and more people coming into the health care system, and this will benefit us as we seek to help them sleep better, breathe better and live better lives in 140 countries. Thank you to all 10,000 ResMedians. Many of you are also shareholders for what you do today and every day. With that, I'll hand the call back to Amy to close this out.

Great. Thank you, Mick. Thanks, everyone, for listening. We do appreciate your time and your interest. If you have any additional questions, please don't hesitate to reach out directly. This does conclude our second quarter 2024 conference call. Kevin, you can go ahead and close this out.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.