West Pharmaceutical Services, Inc. (WST) Earnings Call Transcript & Summary

Good morning, all, and welcome. My name is [ Fazi Kash], and I'll be moderating today's session. It is my pleasure to introduce Eric Green, President, CEO and Board Chair; Bob McMahon, CFO; and John Sweeney, VP of IR of West to the JPMorgan conference. And without further ado, I'll hand it over to Eric.

All right. [ Fazi], thank you so much for the introduction, and thank you for the invitation for the JPMorgan Conference. Happy New Year to everybody, and it's a great start to 2026. Before I get started into the West discussion, I want to just reference the safe harbor statement that's found on this presentation, also found at our website at westpharma.com. I'm going to talk a little bit about West. It's a phenomenal story over several decades of where we are today, but more importantly, where we're going. If you think of from an investment portfolio perspective, we are the global leader in the injectable medicine space with what we provide each and every day. We have developed a significant moat around the business that has given us competitive advantage, continue to drive performance, particularly around our proprietary solutions, our reputation in quality, reliability and scale on a global basis. We have an attractive business model that drives long-term construct growth of 7% to 9% organic growth and also margin expansion. Majority of that expansion is driven by mix shift, which I'll explain shortly. But the underlying drivers of that growth is really evolving around our high-value product components. It's being driven by really 3 key areas is the rising of biologics and biosimilars, our participation on those molecules, the development of GLP-1 injectables in the marketplace. And also, there's increasing regulatory requirements such as Annex 1 in Europe that positions West very well to be able to support our customers with unique solutions, existing molecules in the marketplace. The fourth area is around the management team, has a success track record, and we recently strengthened with key additions to the organization, which we'll touch on. And lastly, but also very important is we have a very strong balance sheet and cash generation with this business model. So overall, very healthy business model that's unique in this space and it has given us the opportunity to continue to be the #1 player in the injectable medicine arena. Let me get into greater details in each of those areas. First of all, what we do. We have a portfolio that's pretty robust. We produce over 41 billion components a year, of which is broken out into the high-value products and standard components. These are the typical elastomer components that you'll find in primary containment, whether it's a stopper, a prefilled syringe or a cartridge. And we are participating with the elastomer components on those drug molecules. And that's the majority of our business. Secondly, we also participate in high-value drug delivery devices. This is the areas of administration systems that you'll find in a hospital setting for vial to bag or a vial transfer device for health care professionals. We also have containment systems driven by our Crystal Zenith through our partnership with Daikyo in Japan. It's a 50-plus year partnership, allows us to contain some of the most complex biologic molecules that are being developed as we speak. And also, we have a wearable platform of multiple different products, whether it's an auto-injector or an on-body injectable device that is in the marketplace today. The third area of our business is contract manufacturing. And this is where our customers bring us their IP around an auto-injector or a multipurpose pen to be able to design, scale and mass manufacturing on behalf of our customer and we have this business located strategically in Europe and the United States. So from a perspective of portfolio perspective, it's pretty broad. It's pretty -- and it's servicing basically a very diverse group of customers, small, medium, large global customers across the globe in the areas of generics in the areas of small molecule and obviously, in the areas of large molecule, both biologics and biosimilars. Just look at the top 30 pharmaceutical companies in the marketplace, we're working and serving those top 30 customers on an ongoing basis. And how does that translate from a market perspective? Our elastomer components is on roughly about 75% of the injectable drugs that are in-market commercialized today. And we aim to continue to strive for that level of performance. At the end of the day, our focus is aligned with our customers. We are focused on patient outcome and the highest quality, best service reliability to build support our customers in the market long term. If you think about we are -- as I mentioned before, we are the #1 player in this space with $3 billion of revenue approximately, that was in 2024 and about 20% of operating margin. We have 25 manufacturing facilities that are able to produce the 41 billion components per year. If I want to translate that to a number of patients that we touch is approximately 100 million patients a day. And so when you think about quality, you think about the culture and the purpose of the 10,000 team members we have across the globe, that is our focus to support our customers and able to provide high-quality products to our customers -- to our customers and ultimate to the patients. The portfolio that we serve is quite diverse from a geographic point of view, from a product portfolio point of view and also market. If you think about geographically, we're really well positioned to be able to support our customers in the markets where they're servicing the end patients. And you think about our $3 billion of revenue, in 2025, we estimated the gross tariff impact on West is roughly $20 million. Yes, we took steps to mitigate those tariffs. But more importantly, the reason why we're able to keep that number where it's at is because we are manufacturing in market for most of our customers, and we have the capability to tech transfer from one region to next and enable our customers to grow. The portfolio, specifically around high-value components. If you think about, again, as I mentioned around the elastomer components. HVP components is roughly in the third quarter of 2025 is 48%. That continues to grow. It's our largest part of our portfolio. It's a fast growing -- it is in our long-term construct. It is our fastest-growing part of the portfolio, and it's actually the most profitable. And think of from an end market perspective, the biologics, we are at the 40% level. And only 5 years ago, we're at 25%. And we all know the factors behind that. The new molecules are being introduced in the marketplace, both the innovators and biologics, but also the biosimilars. So again, a very diverse portfolio. We're very well positioned to be able to support our customers on a global basis. And more excitingly, we're able to support our customers on the most complex molecules that are being developed for the next generation of therapeutics. The macro trends that favor West are quite remarkable. When you think about the injectable market space, it is a fast-growing element within health care. In a subsegment of the injectable medicine space, I would say, is the biologics and the biosimilars. And that is also on the rise. If you just think about the number of new approvals that are going through the FDA with BLAs is on the rise compared to other types of molecules, whether it's small or ANDs with generics. The pharmaceutical companies that we support, their spend has increased, but you think about the injectable medicine space actually the fastest-growing part of the portfolio double digits. And I mentioned earlier about the complexity of new therapeutics that are coming into the market, our high-value product portfolio, particularly the higher end such as NovaPure is very well positioned to support our customers when they think about the primary containment needs on those new molecules. Another macro trend that is occurring is the regulatory trends continue to -- and the quality expectations continue to elevate. And we're very well positioned to support that. With our new products that we're launching, the new processes we're putting in our manufacturing facilities, we are constantly challenging ourselves to drive higher quality to be to meet the new regulatory requirements that are being introduced across the globe will increase safety and quality for in patients. And we're also very well positioned as mentioned before, when pharmaceutical companies are looking to onshore to the United States. If you think about our portfolio of manufacturing facilities, we can support that growth with existing assets and with controllable amount of spend needed to continue to grow those facilities. So a number of many macro trends that are supporting West future growth for a number of years to come. What's unique about this business is that there is a durability and resiliency of the business model. There are going to be peaks and troughs that we did occur. If you think about the COVID vaccine time period where we were brought in to build to support the elastomer components. Basically, every dose that has been delivered and the seals also across the globe. If you think about the -- if I go left to right on here, what's really unique about the business model is that when we work with our drug customers, they're identifying what is the optimal primary packaging solution for that drug molecule that they want to get approved and launch in the marketplace. Once we are -- our technical teams work together and decide on the right formulation, the right configuration. Then our product is written in the drug master file that is our IP at West is written into the drug application with the FDA. Once approved, we're now on that molecule for the duration of the molecule. So it's a great opportunity for us to win early in the pipeline and see the benefits for a long term. There's increasing compliance and also our customers are looking at ways to reduce risk. And that's why our high-value product components business has historically grown considerably over 10% and last 5 years, a number of years, and we expect that to continue to be high single to low double digits going forward. That's our belief in the market. There's powerful growth accelerators happening today that we're able to respond to, you think of biologics, thinking about GLP-1s you think about the regulatory changes in Europe with Annex 1 and the capacity expansions required to support those growth and how we invested supports that growth driver that we're currently seeing and we'll see going forward. Interesting, when we look at our business model, these are long current reoccurring revenue streams for existing molecules in the marketplace for a number of years is for the duration of the drug in the market. And that ultimately gives us sustainable growth when you think about market and margin expansion through a mix shift effect with high-value products and allows us to look at platforms and new product approaches through innovation to continue to sustain that growth for many years to come. Let's go into deeper in a couple of the areas. Number one is biologics. We know our position. We participate over 90% of the new approvals of biologics that were in 2025. This is about 40% of our revenues, as I mentioned, and it does require the most complex part of our portfolio that we continue to expand and grow. If you think about the injectable reason why it's so attractive, as you just think about the growth of the biologics approval process is far greater than the other, the small molecules recently and over 85% are injectable medicines. Again, this is one of the key drivers of our growth for high-value product components for both biologics and biosimilars. And just to reiterate the biosimilars and the biologics product will use the same configuration and same economics for West and working with our customers. The second area is around GLP-1s, how do we participate? How does West participate? We participate on the elastomers, whether it's in a vial configuration with the stopper. If it's in an auto-injector, it's a plunger and we also participate with a multipurpose dose delivery device that would be a plunger and also line seal that we provide at the end of the cartridge. We also, from our contract manufacturing business, we do participate with partnership with our customers are taking their IP and scaling up to do mass manufacturing of auto-injectors and pens, both in Europe and the United States. So we -- in both parts of our -- both segments of our business, we're able to support this growing market and to be able to support our customers as they expand in new markets and also with new patients adopting the GLP-1s. These are multiyear commitments with our customers. And we're able to leverage, particularly in the elastomer business, the investments we made during COVID in our high-value product plants to produce the products that are used -- high-value HVP products used with the COVID vaccines. Those assets are fungible for biologics and also for the GLP-1s that we're supporting our customers with. Our elastomer business, our participation with GLPs, with elastomers is roughly 9% of our total business. In our contract manufacturing business, it represents about 8% of our total business. That should give you context of where we are with the GLP-1s. It's part of our portfolio. It's not the only part of our portfolio. We're very pleased will support our customers on this growth that we anticipate going forward. The third area I want to touch on briefly is the Annex 1 regulations. This is a multiyear opportunity. If you think about the 41 billion components we produced every year, you take contract manufacturing on the equation, proprietary products is roughly around 35 billion components a year, of which 25% of those units are high-value products. About 70-plus 70%, 75% of the revenues are high-value products. On the flip side, 75% of the volume we produce in our facilities is standard products. And again, about 25% of the revenues. So therefore, there's 6 billion components that we feel with our working with our customers of molecules in marketplace today. Commercialized molecules have been in market for a number of years. They are using our elastomer components, specific formulations that we're able to support our customers on the documentation and start raising the quality expectations to be able to meet the new Annex 1 regulations that came in play end of 2023. That now includes the primary packaging with elastomer in glass. So our position to support our customers with elastomer is be able to continue on this journey. It's a multiyear effect, about 6 billion units today of the $26 billion that we produce, $25 billion or $26 billion we produce in standard. And as our customers adopt for the European market, we'll see how that evolves from a more global perspective. This does drive revenue. Enhancement through ASP increases. Obviously, HPP has a higher ASP and a higher margin. And therefore, we're seeing that benefit in our organization in 2025 for the first 3 quarters, we talked about 200 basis point growth on the entire business has contributed to Annex 1. This does strengthen the customer relationship. And we continue to -- we will continue to drive this forward for, as I mentioned, multiple years. Lastly, I want to talk about the growth strategy around investments that we've made. This support, we've made significant investments in proprietary for a number of years, particularly around the COVID time period. Following that, we made material investments in contract manufacturing to support the growth and specific contracts with customers that we're very pleased to be support with in both auto-injectors and multipurpose pens both in the United States and in Europe. Those assets are in the rise of utilization. We're ramping up in those facilities. And we're also able to start not just producing the device, but now we're moving into drug handling, not fill finish, but drug handling, assembling the final packaging of the cartridge into the device to support our customers. As we think about going forward, we're very well positioned on the growth drivers we talked about, the biologics, GLP-1s and Annex 1s and our laser business by leveraging these 5 high-value product plants that we have, both in Europe, U.S. and also in Asia and Singapore. Our capacity utilization right now is roughly around 60% on average. Now in the United States, it's less than that. In Europe, it's higher than that. So as we think about onshore in the U.S., we think about growth across the HVP platform. We have the capacity to continue to grow. That's why you'll hear more from Bob about our capital deployment, we believe, firm in our belief that we should be able to get our CapEx back to the 6% to 8% of sales going forward starting in 2026. Again, very well positioned for growth, and we're geographically spread to build support of customers in any market they want to support. If you look at the portfolio from a size and revenue contribution, as I mentioned, HVP components is the largest element of 48% of our business, double-digit growth and I just mentioned all the key drivers. HVP delivery devices is 12%. There was an announcement on Monday. I'll talk about it in a moment. But without SmartDose 3.5, it's about 8% and the growth of that unit is roughly around mid-single digit. The standard packaging, I mentioned is a significant amount of volume. But from a revenue perspective, and the growth rate is low single digit. And some of that is due to, obviously, moving up to high-value products where we want to go with that portfolio. But also that is more legacy product in the marketplace. And then the balance of 20% is our contract manufacturing. Again, long term, we believe that's a mid-single-digit grower for the organization. From a profit point of view, it is very clear the high-value product components, 48% of the revenues in Q3 of 2025, greater than 70% of our gross profit. So again, our focus of investments, our focus on go-to-market is disproportionately towards the HVP components going forward. This is another depiction of how HVP components have evolved over time. In '19 -- in 2019, we're about 42% of our business. We mentioned in Q3 of last year 2025 is 48% and we believe that will continue to grow for the number of years ahead of us. Again, multiyear opportunity and the volume perspective, it's only 1/4 of what we produce today. And this is the driver of the mix shift effect. When we talk about mix shift, each and every quarter, this is the driver of that growth moving forward. I do have to -- I would like to comment about the team. And there's a number of new faces on this executive team that I'm very proud has joined the organization. I believe we have had a great run for a number of years at West. And I think we're embarking on another opportunity ahead of us. If you think about one of the transitions we did earlier this year is that we moved from global leadership that we've had for about 8 years, very effective when we're much smaller as an organization. But we have transitioned about a year ago to the operating unit structure that has allowed us to create 2 businesses, proprietary segment and contract manufacturing segment. What this allows us to do is drive more P&L down into the organization, into operating units, subsets within proprietary as an example. Accountability of leadership, speed, velocity to be able to respond to our customers and be more specific around innovation and R&D investments that actually accelerate a benefit to our customers and payback for return on to the company. A couple of names I'll just mention here, you're going to meet Bob. Many of you actually do know Bob McMahon. You came from Agilent. It's a great company. And also joined a great company also and has been a great partner for the last 5 months. But he's been able to really relook at our financials and how we engage obviously with the market, but also how do we think about the investment thesis for West going forward. More to come from him. I do want to comment that Aileen Ruff-Patry is our contract manufacturing leader doing a fantastic job and also Shane Campbell, who has 20-plus year veteran at DuPont, who brings that discipline running businesses to West and is on the ground running. Obviously, on the innovation side, I'm very excited that Devesh Mathur has joined organization has deep material science, coating technology and device manufacturing experience with a number of companies, is bringing that capability, innovation pipeline development to our company from an enterprise perspective, but more importantly, aligning and having our operating units more focused on where we can get the best return on our investments. So more to come. Great team. I don't have enough time to go through everybody, but I'm very proud of where we are. All that accumulates into what I believe is a really compelling story of what we believe long term of 7% to 9% organic growth in the top line with all the factors I spoke of earlier. With the mix shift effect very comfortable with a 100-plus basis point of operating margin expansion, a majority of that is going to be in the gross margin area. This will drive attractive double-digit growth for EPS. And we have a very disciplined capital allocation that Bob new to the organization is relooking at our approach, but -- and I'll talk about that in the next slide here. So we do have a strong cash generation. We have a disciplined capital allocation process that I will speak to. So the operating cash flow, the first 9 months last year grew roughly 9%. And if you think about the free cash flow because the CapEx we're bringing it down somewhat in 2025, but going forward, you see the free cash flow grow around 54% the first 3, 9 months of last year. So we do believe that the levers around higher growing businesses, higher profitability, lower CapEx into the market will drive free cash -- improving free cash flow going forward. As I mentioned, we have a strong balance sheet with a net cash position. We're going to continue to invest in organic growth is portionally in our high-value product components business. Again, CapEx is roughly around 6% to 8% going forward. The cash flow far exceeds capital expenditure requirements. We do believe there's some attractive capital deployment in the pipeline, again, being very disciplined and accretive to where we are today, but more importantly, able to provide more capabilities to our customers around our high-value product portfolio. And obviously, looking at how we can continue to drive return capital to our shareholders. And if I want to spend one moment on the SmartDose transaction that was communicated Monday morning. This is a -- it was less than 4% of our sales. We reached an agreement with AbbVie. We'll be transferring the IP and the manufacturing capabilities to them. It's a dedicated facility, so it's a very easy transition. Great customer. We're really excited about what they're doing with the product today in market with their -- with one of their drug molecules. And it's a very good win-win situation for our customer. And obviously, we work with them on a number of fronts. But this particular one, we decided it was -- whereas a two-pronged approach to drive down costs. The team is doing a great job on driving cost out of the system and automation is coming online. But as we think about long term, the limitation of the market to a customer. We felt it's best to divert our focus and attention in other parts of the portfolio versus on SmartDose 0.3, 0.5. More will come from our -- in our February 12 call on how that leads into our -- in our guidance. And lastly, I just want to reiterate, phenomenal great business. Long term, macro trends support the growth, #1 player in the marketplace. We have a pretty robust strategic moat around the business that we'll continue to expand and build upon. We do believe in the 7% to 9% organic growth and margin expansion, long-term business model, great team in place and excited about the future for this team. and we have a strong balance sheet and cash generation. So on that note, thank you very much. We'll transition to Q&A. And again, thanks for your time.

Great. Thanks, Eric. So firstly, West has an attractive business model. Why do you think that West can return to its long-term growth rate of 7% to 9% organic revenue growth and margin expansion?

Do you want to?

Sure. First of all, it's great to be here and really excited to be part of the West management team, really leading -- helping lead the next chapter of growth for the company. As Eric showed we've got a lot of, I'd say, powerful secular growth drivers that I think we are uniquely positioned to win in. If you look at -- first, I would talk about kind of the biologics, as Eric mentioned, the number of biologics that are in the clinical pipeline today are greater than they've ever been. And if you think about our participation rate, we talked about a really strong market share position of 70% to 75% across the entire market. But in biologics, we actually have 90% participation rate. So as more biologics come to the marketplace, not only are they the higher value products, which helps drive that mix shift, but you also have higher participation rate for West. And I think that speaks to our consistency around reliability, scale and ability to partner with our customers across the globe. I also think Annex 1 is a powerful growth driver that will really help drive 200 basis points of growth going forward. And as we think about the increased requirements from a regulatory perspective, we expect to see more and more companies adopt the high-value products and actually tied into the onshoring phenomenon that we expect to see here in the U.S. with Annex 1, those products are being moved to high-value products. As those products then move back to the U.S. there's an opportunity, I think, for us to take those high-value products and move them into the U.S., so that there's actually resiliency in the supply chain. And so that -- and then coupled with pricing opportunities as well as GLP-1s, I know there's -- I'm sure we'll get into some questions about GLP-1. I'd rather be part of the GLP-1 phenomenon. We think it's durable than not. And if you think about not only the existing products that are on the market today, but the pipeline of opportunities there as well, we're well positioned to continue to grow that business going forward.

Correct. And the highlight from the third quarter was the HVP components. We're up 13.3% on an organic basis. Can you tell me a little bit about what drove that performance? And how do we anticipate this business to trend in the fourth quarter?

Yes. The HVP components business, as we mentioned earlier, we believe it's a high single to low double-digit growth. And the key drivers of HVP components today has been around GLP-1s is one of the key drivers and also continuation of new launches of biologics and biosimilars in the marketplace. And we're seeing the uptake of Annex 1. We originally said when we begin 2025, roughly 100, 150 basis points. I think in the third quarter, we mentioned it's roughly around 200 basis points. So a little bit stronger than we anticipated. So if you look at all those 3 factors, that's what's driving that performance. And these are long-term growth trends that we were feeling really comfortable. And we do have the capability to continue to grow with our customers as the markets expand.

Yes, I'd just add one thing. I think if we look at that 13%, one of the things that's really very comforting gives me optimism for the future is if you look at ex-GLP-1, our core business in HVPs continue to grow. Obviously, we were dealing with some destocking as well as the rest of the marketplac in last year. We've largely passed that. We're behind that now. And we actually have seen that in our business with improved performance in our HPP business, GLP-1 improving growth rates throughout the course of '25, and we expect that to continue into '26.

Correct. And if we go to GLP-1s. GLP-1 elastomer business grew from 6% of revenues in 3Q '24, to 9% of revenues in 3Q '25. That's up about 50%. Do you see growth continuing for GLP-1s in the future?

Yes, not at that pace. I mean, we obviously are able to respond to our customers' needs on the demand, and it was probably a little more than we had originally anticipated, but we're able to respond to support them on the elastomer side of the business. We do believe it's a strong -- it's a double-digit grower of the market, and we'll continue to support them. But at the 50%, that laws large numbers is a little more difficult to continue at that clip and with -- as the market expands, there's probably been other factors that will come in that our customers are driving and we'll support them. So if prices change if it becomes access to the drug is more available to a bigger population of patients. We'll be able to support them because we are focused on volume. And so yes, it will be still a double-digit growth for us at West, but not at the 50% clip.

Yes. Maybe just to build on what Eric was talking about. When we think about this, obviously, we believe we're still in the very early innings of GLP-1 in the adoption. And I think probably some -- there's been a fair amount of discussion in other rooms about that, and there's probably some confirmation of that as well. If we think about what's happening in that marketplace, not only is there a rush to kind of lower cost, lower price for consumers to actually increase access certainly here in the U.S. with the administration agreements with the 2 large players there. You're also seeing more indications being investigated and interrogated throughout the clinical piece and then you have the opportunities in biosimilars around the world in certain markets. And so we think that the opportunity to kind of expand the pie and continue to grow with our customers here is pretty strong.

And how will the introduction of the oral format of GLP-1s in fact GLP-1s, HVPs revenues going forward?

As you know, we don't participate in oral. So as we look at it, we've had -- we've been pretty open about how we've been looking at the market of GLP-1s going forward. We do -- we've been modeling for our own investment thesis around 30%. But we'll let the -- our customers have those -- bring those numbers to the table. But we think it's -- as I said about the different pricing in the injectables side, we also think that the orals will definitely open up new markets in new geographies. So we don't believe it's going to be cannibalizing. But we do believe it will -- from our vantage point, it would be growing the market as a whole. So -- and again, very well positioned on the injectable space, and that's where we're going to continue to focus.

And what are you seeing with regard to destocking? Is destocking now over?

Yes, it's pretty much over. We're always going to have a struggle here and there due to working capital by our customers periodically. But in general, yes, destocking is over.

And the big news this week is that you're selling the SmartDose business, what was the thought process behind that decision?

Do you want to go for it?

Yes. I think we were very open about kind of looking at a two-pronged approach there. One is we needed to get the cost down. I think the team has done a good job of doing that throughout the course of 2025. But we also -- we're looking at, hey, are we the right owners for this asset long term. And I think the team is very proud of what they've been able to accomplish over the last several years and really helping support drugs on market with that technology. But when we looked at the opportunities going forward, we felt that we have better opportunities didn't hit our profitability thresholds, and we think that AbbVie is a better owner long term than we are we think that we can then redeploy kind of the time and resources that it's been taking to drive that business and the cost down to a higher growth opportunities, such as our HVP components as an example. So while we were making progress and we'll continue to make progress in reducing the cost, we've got a good relationship with AbbVie, and we've developed that was a win-win for both us as well as AbbVie most importantly, patients to continue to have this product on market and drive, I think, additional, not only opportunities for us to redeploy those resources into faster-growing opportunities for our shareholders.

Great. And maybe one last question before I leave you with some closing remarks. What is your capital deployment strategy?

Yes, it's one of the things that I think really attracted me to this company is it's a great business with a durable recurring revenue stream that generates a significant amount of cash, cash. We've been overinvesting in capital to take advantage of some of that growth for the future, certainly with COVID investments. As you saw with free cash flow growing much faster than our operating cash flow getting at CapEx back to kind of the 6% to 8% range. It gives us an opportunity to deploy our capital to continue to grow the business. Certainly, first off is organic growth, continuing to invest disproportionately in our high-value business. But then with that I think we're looking at opportunities to -- where we can actually augment our high value -- our core business with potentially new technology. So looking both organically and inorganically. But then at the end of the day, we're also looking to deploy in a more systematic approach returns to shareholders, right? Expect to hear more as we continue to dive in and throughout the course of this year.

Eric, any closing remarks?

Yes. First of all, thank you again for the invitation. Very effective -- really productive discussions we've had with the investment community. We're excited about our future at West. We talked about the macro trends. We're very well positioned. We are the key player in the marketplace is critical with our customers. We know we have to earn it every day, and we will continue to do so. But I'm really pleased on where we're going. We have the right team. And I believe there's more to come. So thank you very much, and have a good day.

Thanks, everyone.