Medicover AB (publ) (MCOVB) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to today's first quarter 2020 results presentation. [Operator Instructions] Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your first speaker today, Mr. Fredrik RÃ¥gmark. Please go ahead, sir.

All right, [ Fred ]. So welcome, everyone, to our first quarter 2020 results presentation. And you have heard us, not so long ago, with our 15th of April trading update, so this builds further on that. So if we go and look at the highlights for the first quarter. So despite the coronavirus and COVID crisis hitting in mid of March, revenue increased a respectable, just short of 20% for the quarter to EUR 238.8 million, of which organic revenue grew 5.8%. So slightly lower organic growth recently, or actually for quite some long time driven by the March impact. EBITDA, up 5.6% to EUR 29 million with a slight contraction in margin to 12.2% versus prior year. Our fee-for-service, which is a very central theme of our strategy, grew just short of 24%, and is now up at 54% of group revenue for the quarter. Obviously, the theme this quarter, and certainly for the coming quarters as well for our business as for most other businesses, is the impact of the COVID-19 virus and how that has hit the business and what we are doing about that. So in our situation, basically, the elective services in both divisions have seen different levels of drop, depending on the exposure, but more or less in the 50% to 75% range in the second half of March and into April. I've made the point many, many times on these calls that strength of our companies are diversification, and that clearly shows now as some of our businesses are much less impacted by the virus such as the original integrated health care model, our funded business in Poland and also in Romania, and our emergency and maternity care also largely stable. So again, points out the importance of the diversification we have across. We estimate the impact on lost revenue during the second half of March, as previously announced, to some EUR 13 million to EUR 14 million. Importantly, we maintain our 3-year financial targets for '20 to '22, which, obviously, is a reflection of the fact that we believe that most of this business is not lost for us, but it's rather postponed as we are a very resilient and essential piece of the health care services setup in the countries where we operate. We expect the lockdowns and restrictions to continue well into May. And as I will be coming back a bit later in my presentation here today, importantly, we start to see the early signs of the economies being gradually opened up in our core markets. So that's really important. On the right-hand side, you see the pie charts that we show every time. And again, I make the point that we have 3 dimensions of diversification, which is really important. Number one, on payer groups, which is the left-hand chart, where you see fee-for-service just half of revenue, 25% being our funded, prepaid insured base and 21% being our public business. Second dimension being geography, and third dimension being service models, which you don't see on the pie chart here, but equally a very important diversification. So if we go over to Healthcare Services. So revenue was up a very strong 30.1% for the quarter, of which organic was 6.3%. And of course, you see here the impact of a full quarter of consolidating Medicover Hospitals India as well as the Neomedic business in Poland, so quite some significant inorganic growth in the first quarter. EBITDA was up a good 30% to EUR 14.5 million, with margin flat versus prior year at 10.8%, and 9.8% of that growth was organic. A very strong fee-for-service growth, 43%, again, a reflection of the inorganic expansion since last year first quarter, and it's up to 45% of divisional revenue. A point to make on that bullet point, if you look at the left-hand pie chart. So now the fee-for-service revenue is equally large in proportion for the division to our funded, prepaid revenue, as you see, 45% each and the balance of 10% being public revenue, where quite a significant boost in the public revenue has come, just to remind you, from the Neomedic acquisition that is largely public funding in the hospital business there. Members still grew at a lower rate than prior quarter, but still it's important to state that we're still growing in these days, so 6% up to just north of 1.3 million members. A point has been made many times that the elective services were quite significantly impacted end of March and the quarter. On the right-hand pie chart, you can just note now with India, being a much more significant feature, with the full quarter of Medicover Hospital India at 13% of divisional revenue. Now if we go over to Diagnostic Services, where revenue was up 8% to EUR 108 million, of which 5% was organic growth, EBITDA contracted 7.7% to EUR 19.2 million and margins down to 17.8% versus 20.8%. Now this is, as we will comment later on, you've heard us say many times, the marginal contribution nature of the diagnostics business, where you lose out revenue volume at the top, which clearly happened during the second half of March, you will see that in contribution dropped quite significantly. Now equally true is the other way around, which one should not forget. So when the revenue comes back, equally quickly, the contribution comes back in this business. So that's important to keep in mind. So fee-for-service here is 2/3 of revenue at 66%, and was up 10%. Test numbers decreased 2.4%. We have been -- we are busy to scale up our testing capacity in the COVID-19 range. Important to point out is, of course, in the universe of tests we do, you see a 26.9 million for the quarter in a weekly capacity or 25,000 COVID tests is relatively minor in the bigger scheme of things. However, where we are right now in our country, of course, that's a very important feature of us contributing to addressing the health crisis that we now have. So we are very, very engaged in this in most of our diagnostic countries. Obviously, elective diagnostics significantly impacted. I make the point again differently, perhaps from going to the cinema or going to a restaurant, the fact that someone is going to come to us for a blood test has always a reason, whether that is a referral from a doctor or a need, which is identified by the particular individual. That's why we expect the vast majority of these services to return once it is possible for people to come and visit our BDPs. So during the quarter, we opened a total of 19 new BDPs, and a cumulative total of 683 BDPs by end of the quarter. Perhaps only make a point on the right-hand pie chart, the geographic split here. You see that Germany, half of the divisional revenue, was up 7%. Most of that is private pay growth. You may remember that Germany is not visible on this pie chart, but Germany has approximately 60%, 65% public funding and 30%, 35% private funding in our business, and most of this growth is coming out of the private funding currently, which then -- the consequence of that is actually the private funding is growing quite significantly. You see Romania, more or less flat. Ukraine is up significantly at 21%, despite a very sharp falloff in March, and that is again on the back of extraordinarily strong growth in the quarter before the crisis hit. If we then go to the next slide, which, for those of you that attended our April 15 trading update, this is an identical slide, although we inserted now a nice picture from our team in Bucharest, that is busy on one of the large Roche Cobas 6800 machine. That's a high throughput machine for PCR testing. So -- but otherwise, the messages here are identical. I feel it is important to repeat this for those of you that were not on that April 15 call. Now we have diversified funding sources. That's the point already made. We are significantly impacted on elective services, but we are largely protected on nonelective services and corporate contracts. It's really important to point out that we provide essential services. So where demand for some services point I made just before, perhaps is not going to come back, it will not return. I am absolutely certain that demand for our services will return as soon as people are able to come and visit us, and we are able to provide the service they ask for. And most of the demand, I think, will be pent-up demand, so we expect a very significant service back swing. We are very active in a proactive fashion in most of our countries to be part of the testing effort. I think the world, in general, agrees that a very important part of the economy is being able to gradually open up. And decision makers, officials daring to take those decisions, is connected with the ability to test people whether that is directly for the virus or for the immuno testing, which comes later. So I think both of those will be significant components of the economies gradually returning to normal. I've already made a point in terms of the rebound of demand, postponed rather than canceled. It's really important to make the point that it's not the economy that impacts our demand, it's the lockdown that is impacting it. So the demand for our services will not be impacted short term by any economic factors, but it is significantly impacted by the lockdown aspect of not being able to either go out, or in some instances, ourselves not being able to provide the services. Now of course, in that respect, it is important to point out that we have seen -- we are seeing the early signs of de-freezing the economy, both in Poland, as late as yesterday, the Prime Minister made new announcements in terms of further steps from next week. They have a 4-step plan in Poland, where we're now moving into the second stage of that 4-stage plan to defreeze the economy. Romania has made announcements for a mid-May, more or less, opening. And then there are equal signs in the different countries. Clearly, some changes are here to stay, and there still is a high degree of uncertainty, one should not say anything else than that, in terms of how customer behavior will change and our customers will react to this. If you look at the digital and remote services, we are up at 5, 6x the levels we were before the COVID crisis, which is very good. It's very good from the point of view of us being able to provide services to our customers the way they demand it, without any risk of the virus spreading. And clearly, we had demand for digital remote service before the crisis, but I think it will remain at a much higher level than we saw before the outbreak. And one can't understate the importance of diagnostic capacity. And if some regulator or anyone else had any doubt of this before the crisis, I think that has been put to bed in terms of how incredibly important the testing ability and testing capacity is for being able to address health concerns, in general, and certainly, this particular crisis specifically. The diversification of Medicover is a strength. I made that point many times before. But I think this crisis, if anything, shows that. One of our cornerstones, Germany being the 50% or half of the diagnostic division revenue. And Germany, relatively speaking, is very strong for us. It's less impacted than the other countries, plus the support available from public sources in Germany, both to deal with the labor issues has richer packages, plus there is a much more targeted support to help the health care system to combat the crisis. We have good liquidity. Joe will speak more about that later on. But it's important to point out that we have sufficient liquidity even if there would be a more drawn-out scenario, which is not our base scenario. Point I made before, we retain our current 3-year guidance, which is then a reflection on our view on the underlying demand returning quickly as soon as customers are able to come and see us. So then we flip to a slide where we just try and summarize a little bit what have we done, what are we doing to address that. Clearly, with the kind of fall-off in revenue, you have to very quickly, very fast forward, adjust your cost base. And of course, our, by far, largest cost element is payroll. Now our overriding ambition here has been not to have to lay people off, to protect employment, both, of course, in terms of us wanting to make sure that we do everything we can for our people. And secondly, because we do expect business to return fairly quickly, so we will be able, we believe, to have all our people back in full employment sooner rather than later. So against that background, avoiding unemployment, and then we have, instead, going down the path to try and adjust working hours as much as possible, and we have also, across the board, made temporary reduction in salaries. Now there have become emergence legislation in place in most of our countries. That is helpful. But most important, I think is that we have tried to apply a solidarity principle. Medicover, as a whole, is fighting through the crisis, and everyone contributes. Now leaders and senior staff has taken much larger pay reductions during this temporary period of time, which, I think, is a very important signal. The Executive Committee, which is my leadership team, as a group, has reduced total compensation around 75% during this period. And myself, I have completely given up any compensation until we have taken away the reduction on salaries for our people. Our overriding aim has been and remains to protect our frontline staff from health. Dangerous, of course, in terms of addressing this crisis. I think, I'm fair to represent that my colleagues across the countries have been very successful in doing that. We have had a very few, relatively speaking, infections among our staff, if we compare that to the number of patients we are dealing with. We have invested in personal protection equipment. We have a good supply situation, that's important to point out. So across our operations, we have adequate supply of protective equipment for our staff. And clearly, needless to say, but I repeat that a bit, again, our overriding aim has been -- is to protect employment and as soon as we possibly can get staff back to full salaries and work time conditions. The second largest cost component we have is rental costs for all the facilities and premises we rent across our countries. And we've also been very busy in terms of negotiating with landlords for temporary reductions in lease costs across our network. All our capital investments in organic expansion has been on hold -- put on hold until we have more clarity in terms of how the crisis plays out. And the dividend that was preliminarily announced has also been canceled, as previously announced. Then we have 2 slides, which we also showed you in our April 15 trading update. However, now we have also added the last 2 weeks. So this is with data up until Tuesday this week. And you see the line to the right to the diagram of where it has stabilized to the right. So the diagram -- this is specific in Germany, and the diagnostic weekly sales -- daily sales, sorry, in Germany. And you see, the slide you saw last time was up until the line. And now we've added the 2 weeks to the right-hand side. And I think this is the best way to illustrate to you that I think it's fair to represent that we have a stabilization. I don't want to draw too much out of it, saying it's starting to pick back up. I think that's too early to say. But it's an important point to make that it's not deteriorating further. We see stability. And as soon as the economies then start to more unfreeze, we expect this to pick back up. And on the next slide, you see the same graphs for Romania and Poland that were much more severely affected. You see Romania being down some 70% when we talked to you last time. You see a stabilization on this rather low level. Same point to make there, not just saying it starts to pick back up, but it's not deteriorating either. So that's important to point on the stability. And same point to make on Poland, which is the right-hand graph. Now this is then, clearly, a diagnostic fee-for-service sales. Now we could have put on or I could have put on the graphs for the different services, fee-for-services business, and the pattern would be very similar in the same countries. But not to have too many different examples on graphs on here, we're limited to keep consistent with the graphs that you saw 2 weeks ago. So I think those were the slides, I intended to talk you through, and then I would gladly hand over to Joe, who sits on another location in this conference call.

Thank you, Fredrik. So Hanna, if you could move on to Slide 11.

Yes. That's up now, Joe.

Thank you. So I think Fredrik talked through the highlights there. I think it's quite impressive that we've been able to continue to grow our revenues, up some 19.6% on reported figures and up 5.8% in terms of organic revenue. Obviously, we consolidated for the full quarter, the Indian Hospital -- Medical Hospitals business into the figures. And the other also major inorganic component then was the Neomedic business in Poland, the maternity business in the south of Poland. So on our profit measures, our EBITDA reported under IFRS 16, this increased. We were up some 6% in terms of -- some 5.6% up in terms of EBITDA. This is as we have expanded the business. And also, we've been busy expanding, as you see in our lease liabilities, the footprint in our capacity expanding in the gyms business and expanding, obviously, bringing in the businesses that we consolidated inorganically and also, pretty much across the board, expanding facilities to deal with the increase in demand that we were seeing in the underlying business prior to the crisis. So that number was up. Other measure that we use, EBITDAaL, so EBITDA adjusted for lease expenses. I think this is more representative of the performance of the business. This was down 9%, EUR 16.8 million versus EUR 18.5 million last time around. And I think that shows then the issues in terms of the COVID-19 impact coming in, in the last 2 weeks of March. We're continuing to expand the business over the quarter. And so we -- and cash flow-wise, spent some EUR 19.4 million in terms of expanding capital in capital expenditures. On the balance sheet, that was some EUR 13.7 million. We had a lot of costs that we were incurred, particularly around the Oradea hospital in the end of Q4, which were then settled in the first quarter. So we see a divergence on the cash flow on the balance sheet side in terms of the capital investment. That Oradea hospital is now pretty much complete and ready for commissioning, but we wait until the crisis has moved ahead in terms of actually commissioning that facility. Could you move over to the next slide, Hanna?

Slide 14?

Thank you. Yes -- no, sorry. You're already on 12, I see. That's fine. Thank you. So net interest cost, this was increased quite a bit in terms of the prior year. So we were at some EUR 5.4 million net interest cost. This included our release of arrangement costs, which under IFRS, are deferred and released over time to match the life of a loan. As we early repaid the facilities of Medicover Hospital in India and refinanced that of the central facilities that we have with Medicover, that was released through the P&L account, so some EUR 1.2 million noncash. And then we had also a quite big increase in terms of the footprint of the leases, which then also means that we have also an increase in terms of the cost of the lease interest. So this was EUR 2.5 million versus EUR 1.5 million last time around. So I think that gives you an idea also then in terms of the size of the facilities that we've added, both organically and inorganically over that period of time. And then so the underlying interest cost was some EUR 1.9 million versus some EUR 1 million previously. And that is with a substantial increase in terms of the interest-bearing debt that we're carrying. The FX loss was quite substantial in the quarter. We had EUR 4.5 million loss. Again, a large part of that being noncash, as this is the euro-denominated leases in certain of our markets. We have an exposure to that in Poland, in Romania and, to a smaller degree, in Belarus. And in Poland, with the largest exposure, and we had around about 9% currency movement over the quarter, and that led to a EUR 3.5 million loss being recognized through the profit and loss account for those lease liabilities. Belarus was around EUR 0.5 million. We also have an exposure in Romania, but the currency rates were flat for the quarter as the currency has weakened earlier in 2019. So the crisis wasn't so strongly reflected in the currency. Those items I, again, mention are noncash. We have increased on a net basis, the lease liability by EUR 11 million. Underlying that is some EUR 23 million, EUR 24 million increase in the lease liabilities for new leases, netted, obviously, by our repayment of leases. The expansion has been in the area of our gyms business, where we have been busy expanding our gyms to support that business in Poland. And also then a little bit across the whole -- all the other business units where we've been increasing our footprint, managing the increasing demand that we saw prior to the crisis. Cash flow from operations has been very strong for the quarter. So we're just short of EUR 40 million. We had around about 8 million inflow from -- on capital -- working capital that was unwinding of receivables balances on the balance sheet from 2019. Our effective tax rate has gone up a little bit. We estimate we had a tax credit that is mainly coming from deferred tax movements, particularly in things like this FX loss on the lease liabilities, which we recognized a deferred tax movement on. Cash and cash equivalents. This has increased on the back of that strong working capital. We also took in -- drew down some additional funds from our facilities as well to bolster our cash on hand. So that is some EUR 60 million. We will keep those cash balances relatively high as we go through the crisis. Loans payable, net of cash. This reduced -- and again on that working -- on the stronger operational cash flow. So that was down to EUR 232 million from just over EUR 240 million at the end of the last year. If you could go to the next slide, Hanna. So lease liabilities, these increased to just over EUR 187 million, year-end EUR 176 million, so EUR 11 million increase. And that is on prior committed expansion of facilities. We work ahead sometimes after a year or even longer in terms of putting these new facilities in place. And that was also increased with the FX movement through the P&L, some EUR 3.5 million as well. We had, at the end of the quarter, just over EUR 111 million outstanding on our commercial paper program in Sweden. Those maturities are short term. They come over the next 5 months, evenly spaced. We will refinance those most likely using our revolving credit facility. We had available facilities somewhere between EUR 190 million and EUR 200 million of committed undrawn credit facilities available for the group, plus we have some EUR 60 million of cash on hand, as you saw. So we're quite well funded in terms of where we are. We've got absolutely all the cash and facilities to be able to deal with any maturities that we have over 2020, 2021. And the revolving credit facility is due for renewal in 2022. Our capital investments were, as I mentioned, in terms of cash flows, EUR 19.4 million, balance sheet-wise, some EUR 13.7 million as we paid balance sheet items, which came in at the end of 2019. We are now putting those capital plans on a hold, as you can imagine. So we will reduce our capital commitments over 2020. But we have already put in place quite a good base in terms of being able to deal with any pickup post the crisis. So we will be able to go back to a relatively good growth organically once this unwinds. IFRS equity. This was impacted also by the crisis, with the markets where we work being exposed to currency weakness. I mentioned zloty, Ukrainian hryvnia also went through an unwinding as well. So we had around about EUR 19 million of negative translation movements on our net investments in those markets due to the FX weakening. And so that brought our IFRS equity down slightly. If you could go to the next slide, Hanna. So just to summarize, in terms of looking at those numbers versus our targets. Obviously, for the next few quarters, this is going to become a little bit less relevant in terms of growth and profit. So on our growth targets, as I mentioned, we still actually came in which reflects the underlying strength of the business that we have of 5.8% on our organic revenue growth. And we were down in terms of where we expect it to be on our adjusted EBITDA. So this was down, but still quite a respectable number for Q1. And then the capital structure. As we've brought in those businesses, that came down, as we talked about before. So 2.8x in terms of loans payable, net of cash divided by adjusted EBITDAaL. So Fredrik, I hand back to you, if you want to add any summarizing remarks?

All right. Thank you, Joe. Now so I'm just wrapping up and saying that the -- clearly, everyone is impacted. Medicover is impacted. We are dealing with the crisis, I think, in a good way. No one expected this to hit like this, and now we're in the middle of it. And I think we all look forward to the economies starting to unfreeze, but we're also very conscious of the fact, particularly because we work in this field, that is not done in a way so the virus spreading rebounds. So clearly, the way the regulators, the way the politicians will go ahead to deal with the opening up of the economies will be very important in terms of how quickly our life and our country's lives will return to normality. And then clearly, I think that's the most important aspect in understanding and how we deal with the crisis. So that's my wrap up before taking any questions that you may have to this report.

[Operator Instructions] Our first question comes from the line of Kristofer Liljeberg.

It's Kristofer from Carnegie. Two questions for me. First, is it possible to say how much -- with the salary reductions you are doing and other programs from different governments, how much you will be able to lower the cost now in the second quarter? And also if it's possible to split out, let's say, the -- yes, the fixed cost, the semi-fixed cost that you will not be able to adjust for? Then I was just a little bit curious about the outlook you are giving and the words using. If anything, it sounds maybe a little bit more cautious when it comes to the second quarter recovery than what you at least wrote on the 15th of April because you're doing the comments about the economy also, which I think you have downplayed before. Is that the case or if I just interpreted this in the wrong way?

All right. Kristofer, I take your second question first and then I turn to Joe to answer your first question. So on your second question. No, Kristofer, we don't have a different view on the outlook. So then you have read something into my language, which was not intended. So I think I made the point here, if anything, what we were looking at in the 15th of April update was that we can start to see that is not deteriorating that we get stability. And I think that's a very important point to make that it has not dropped further. And in fact, you have some green shoots, I think, is fair to say, where you see things perhaps looking a little bit brighter than a couple of weeks ago, but I'm very, very specific not to draw any conclusion from that today. But -- so I'm saying that if anything -- it sort of confirms the picture that we have communicated back in -- sorry, on the 15th of April. Now the point with the economy, Kristofer, I made the point here today again that, for us, it's much more a lockdown issue than it's an economic issue. But of course, the lockdown is largely unfreezing the economy. So I'm using the terminology, unfreezing the economy to reduce the lockdown effect, if you wish. But -- so I think it was not intended to have any different meaning in our outlook than we had at the 15th of April. So then I hand over to Joe to comment on the first question.

Kristofer, I think your first question is -- would require quite a detailed answer. I don't think we can really give that in here. But I can give you some color. If you look back at last year, so full year 2019, we had, in terms of staff costs some EUR 375 million. So that's directly employed staff, and that's also doctors that work on a contractual basis with us, but they spend most of their time with us. So we treat them effectively in quite a similar way in terms of full-time staff. So that was some 47% of our cost base. So that, we are -- and are impacting. So from anywhere from short-term working technical unemployment and also where people are working and continue to work full time, we are also asking for salary reductions as well so to help the solidarity aspect in terms of supporting the employment across the group and across the company. So I can't give you a quantified number in respect to that. Our next biggest element then is in terms of medical services, and that comprises, for instance, our reagents with our laboratory businesses, also doctors where we work on a referral basis, so what we call third-party collaborators. And those, obviously, will be adjusted in terms of in line with the reduction in revenues. That's around about 31% of our cost base. Then, our rent costs are around about 4%. That is fixed. That will be -- I'm talking about 2019, that was around about EUR 31 million. So that will be adjusted down temporarily. Given the way that IFRS 16 is accounted for, you probably won't see so much of that in the impact in the P&L account, but it will be going in the cash flow. And then depreciation is around about 9%, which, obviously, won't be impacted by the crisis. I hope that helps give a little bit of color.

Our next question comes from the line of Klas Pyk.

I have 2 as well, if I may. So you say that the shortfall in revenue during the second half of March is around EUR 13 million to EUR 14 million. Have you seen similar levels during April? And what do you expect going forward until the lockdowns have eased? That is my first question. And then the second is, you say that when economies start to open up, do you expect to see a strong rebound in service demand. Can you talk a bit about your capacity to meet that demand, specifically under more normal circumstances? What is your capacity utilization?

Yes. Sure, Klas. So on the first question, yes. So that's why we wanted to show -- illustrated with these graphs for you. So the second half of March dropped. I think you can take as representative for what the drop in April is, if you look at those graphs, more or less. And so that's a yes on that question. And on the -- on your second question, yes, we -- I mean, this is why I made the point with staff and people. In terms of physical infrastructure, we have capacity to have the list. Now obviously, the most important element is to have staff that is able, willing and in place to service our customers. So hence, the ability to be able to bring back staff to work on a short notice is an incredibly important feature of this. So -- but -- so we assume that we will be able to handle from a capacity service point of view, a strong rebound, definitely.

I think I'll add a little bit of color on that for you, Klas, as well. I mean we have 2 hospitals, which we're not using now, which are ready to go. So we have the one in Oradea, the new wing we added on there; and we have a new facility in India, which we have signed for, which is put on temporary hold as well. So we have 2 new facilities, which are ready to go, which we haven't moved ahead with in terms of using at the moment.

[Operator Instructions]

We have -- perhaps I -- there have been 1 question sent in here on the chat box, which basically is asking how the current pandemic is impacting our thinking on M&A strategy? And in the short run, it's very simple. We just stopped M&A activity in the short run, as I think most people would. So basically, inorganic expansion, for now, is put on hold. Now once the crisis is over, and things have returned to a new normal, we would certainly expect to see a return of the M&A strategy the way it has been laid out before. Although it feels a bit premature to talk about this in the heat of the crisis, but I would be surprised if there would not be a number of interesting opportunities presenting themselves at some future point in time. But I really don't want to go in and talk about this too much right now because I think the focus for now should be on how we deal with the current crisis.

Absolutely. I mean we have a balance sheet capacity. But we're not going to use that at all. We're focused on the crisis. We're focused on making sure we get our employees fully back to work and to make sure that we're paying them fully. That's our first and only objective we're really looking at, at the moment.

Do we have any more questions?

[Operator Instructions] There are no further question at this time. Please continue.

All right. So well, then, we thank you for attending this call, and look forward to, if not before, to speak to you when we have our second quarter announcement in the summer. So thank you, all. Bye.

That does conclude our conference for today. Thank you for participating. You may all disconnect.