Loading...
Docoh

CynergisTek (CTEK)

Participants
Bryan Flynn Investor Relations
JD Abouchar Chairman
Mac McMillan President and Chief Executive Officer
Paul Anthony Chief Financial Officer
Andrew D’Silva B. Riley, FBR
Jeff Bash General Pacific Partners
Avi Fisher Long Cast Advisers
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, everyone, and welcome to the CynergisTek’s Third Quarter 2017 Earnings Conference Call. Today’s call is being recorded. And at this time, I would like to turn the conference over to Brian Flynn, Investor Relations. Please go ahead, sir.

Bryan Flynn

Thank you, operator. everyone third welcome call. XXXX to want to quarter CynergisTek’s earnings I

Financial Abouchar, us are: Officer; Chief Chief company from Mr. and Mac Anthony, Joining the and Mr. today Board. of Chairman the McMillan, President Paul Officer; JD Executive

no formal call are cause Before these risks the and and to remind made results the of a floor industry I now financial like in detail may results any to SEC webcast, the including prospects, to I’d be disclaims new subject the everyone events materially or will uncertainties this those we to JD such obligation At actual presentation, like others, forward-looking described JD, some that or uncertainties begin future to statements future call could among are its Mr. the from as and a number greater time, differ result on those and and conference or would whether yours. that obligation to of forward-looking call. update Abouchar. risks be statements, expressively is described the in information, Certain regarding in under turn alter and of otherwise. company’s filings. CynergisTek over is the

JD Abouchar

you thank call listen to today. taking to our and Brian, the Thanks, earnings for everyone time to

emerging and to with cybersecurity. offered him decided remains building company. CEO, company to As in IT our and down in services you’re to all tremendous into was Joe and the aware, instrumental private to that profitable friend shifting the a Joe of did growing Auxilio good to job a step the focus a resource Auxilio has a was an opportunity Flynn, a former company. founder and a take Joe opportunity a

seamless of integrating and lead the Fortunately, to the we McMillan. It’s role a a please extremely now Mr. in well call part pleasure expect and closely and to in our the the President leadership this appointed for qualified turn operations future, go Mac great year, job a transition. President has forward. Mac his investing company, has worked as better is together newly our done CEO, and going to ahead. team Mac, over

Mac McMillan

also CynergisTek plan I today. to the enhance joining and Joe job, growth strategic and the up would year. did excellent JD, for pleasure with the like drive of in we was and a following to From you, them days will thank last roadmap the tirelessly an everyone Thank the leading call immediately to profitability work acquisition to over and great the place. solid CynergisTek, has that a to come. in worked years devise it

great deal are progress a invest in and future. We of great our making to continue –

we few quarter-to-quarter some have Over quarters, have our efforts, results. focused integration which irregular caused on the last completing

and that lay these believe we growth However, for the our efforts next foundation expansion. support leg of will

making. While we continue may that made, of been that the mindful Affordable regarding Act impact are certainly excited customers the have we has budgets new and uncertainty healthcare to about Washington ongoing the decision the on legislation Care in and progress be

have equipment, events, cybersecurity are biomedical Bad for rules around more energy recent attacks spur considering Washington makers services. such side, as flip for malware WannaCry, and NotPetya who and need may the in put On Rabbit, directed devices cybersecurity by law greater actually IoT the in new which

watch We continue to these developments closely.

in and to the close a healthcare President and our most to initiatives rapidly years deliver has Hospital CIO growing task executive at and the recently, success. and Technology Texas client the was Symantec. responsible computer records base. Angela Solutions will healthcare development Vice where Finn, seen, board. Rivera, our leaders with experience Children’s of comprehensive have of his EVP cybersecurity Health our of was in for our and Life than as the of ensure she XX to new Sciences, – talent group, high-caliber healthcare Managed to team for of brings new the brings Operations, EVP in from drive We security experience XX recently well-respected unit, lead may track Officer strategy, we skill be professional Document services industry IT leading management As a deep David the and added we will strong Angela Service Health both a operational portfolio of strategic ideal years to David substantial added of professional delivery. industry lines. business very of and two healthcare to you more information help recently, our management roles Strategic business service development IT continue growth Her some the solutions have set most and role Information Innovation, knowledge to asset. working

Finally, and to financial wealth we of and adding our markets diversify individuals industry and a capital unique with and to we continue Judy fortunate microcap enough add Most to operational board expertise. were brings with our board financial who her strengthen recently, experience. by Crandall

performed one on to continue focused managed service customer. security this first assessment realized long-time effort of We revenues our CynergisTek’s quarter. initiatives and paid during for cross-selling a We this Document Managed have from our be Services for

Following stage completion directly of that proposal to client. assessment, moved at the of we request the the

a we this prospects relationship respect the engagements frequency quarters. Service and coming and the experience, capitalize our this about translate to into Document cycle, to of What into the on cross-selling expect translate entering MDS Our me both that additional Managed is contract. in goal will sales this long-term and excites volume with progress, is that similar

existing offerings. services Additionally, in professional are our and we area now sourcing the of silver services, adding remediation D.C. strategic to

We talent traditional around short in for drive direction strategic pipeline perform and accelerate working security these long-term and as the the – from and are services their to experienced and support and growth customers projects expand we to to see resources Consistent programs. well. continues priorities to cybersecurity our growth continuing services are talented cybersecurity here demand to our

clients and service maintaining while managed renewing existing security add new We continue customers. to

I’ll vendor through development the our services and in monitoring formal speak Additional priority of these patient more clients. growth management managed high security is which to is a response, around coming incident expansion identified of service and privacy our later. by a

traction we to drive for As growth are with company. on focused to we executing the all new of continue offerings, our our strategy gain

As headwind. clarity cycles, remains nothing is in effect. to The lack I earlier, to Washington uncertainty which sales mentioned causing but a continue cautious we of extending the buyers is feel the legislative be in new,

turnover, the XXXX, few that over next Services, new we likely not up Turnover Document ramp earlier loss, During experienced of next this some of likely the see as effects decline. year two in the will When they the MDS that Managed contracts quarter, that these reflect which facing. manage do and partially when quarters. quarters customers the few began The offset the will some will To goal are normal, but sales is like we delivery in enhancing early to is efficient services that announced through you to restructuring easier the is cycles of extended you we adjust have what and it profitability cycles with gaps, are more challenges, processes. now, we’re to to reality. temporary way these vulnerable we deliver unusual

automation client the to flexibility how security sell high-value components We that how adding the for of further more MDS us we – improving of separating and value-based next enabling of The some our component to performance services, customers these give those of the repackaging want. some while technologies, out our services labor add-ons, competitive-based more integration which and these allow are still as is charge cost. reduce solution through options we providing a sell will packaging

relationships with to are strengthen applying practices expansion. account for opportunities identifying our management CynergisTek’s we Additionally, in clients MDS

the on our has Compliance Lastly, as and we have focusing the CIO, invested to allowed cross-selling message clients, by engage pipeline Officer CSO CynergisTek and buyers. strategy in security change the existing into growing a the us Chief which

process we are goal changes this still accelerate in which the the seen have industry. margin the to help with quarters, We in these early pressure in should offset coming our

looking We profitability of all endeavor. across will of help to our the this emphasize that in MDS optimization services model and offerings our delivery are

restructuring of MDS and the offerings we the In offerings, customers. invest market service meet our our expanding continue emerging addition to to needs traditional to security in

said to earlier, closely, developments around in and biomedical new devices watch I As Washington IoT legislation likely. very we continue as seem

biomedical several critical associates assets. who managing these and their assisting well already supply as as clients produce with business are their risk, We devices

offering now We biomedical lessons the a working are security learned device using from on these experiences.

our quarter, of are pleased success new launched This lines earlier with this year. service the we very

example our first The service. is vendor security management

acquisition, manpower our Delphiis RiskSonar, customers manage bringing This to their and an The us have proper pose to do in on vendor focus risk other example the we and beginning increasing from upgrading the core are third-party possess to and are manage software-as-a-service-based for By efforts times, customers software our threat our data take not Many leave those to vendors clients, is solution, of that integration expertise the that the to another the systems the integrating management they around off. teams hospital. suppliers on also security management. a areas enterprise. pay allows risks process for the to entire where our their up to called now

Another need reach allowing will make following critical them compliance, aspects services our services, or of and the incident. provide leverage organization a beyond a that all make recovery platform expand how remediation. and high-margin that traditional and to response impact elements forensic, relationship mass. recap to go additional prevention, the of the build that incident the our response clients the To are our will up and an and examples the to our example can response other communications approaches great actual existing incident, our customers, quarter. and breach would be technical, strengthening from address changes and which to and These with exercise us on we We focus investigatory, to

have new integration base, the restructuring setting customer of companies, collective stage development we that the offerings tremendous beginning We started year. towards the two the of for and the invest XXXX, service making cross-selling progress existing to continued at the of of services our to in

team, importantly, providing forward the are revenue to joined cybersecurity opportunity growing We excited significant healthcare about industry. and to the services and IT looking consulting taking of advantage most CynergisTek margins focusing see that on are the leadership we has in we new the and

over December. with Paul, you ahead. go you through Micro it LD Micro to Before us Benchmark go I to the I and to at and November will this turn encourage the Craig-Hallum, financials. it many Conferences cap over hand please Paul, to I meet Paul, of

Paul Anthony

Mac. Thanks,

parts the months of benefit the as in by The to gross our and customers. of in equipment million XXXX, three margin This as of was Cost MDS For of result any $X.X to compared expenses million sales salaries months to of professional attributable from September every revenues million of attributable well growth as the the acquired the primarily refresh support the $X.X increase the compared and to approximately the company’s $XX.X typically five as September of the same are $X.X indirect is couple newly XXXX. facility. CynergisTek to months January. cybersecurity maturation CynergisTek XX% a activities approximately of million from for Equipment imaging the ended fleet our to and XX, as XXXX, largely supplies. $XX.X period customer as the rendered document the for XXXX. revenue as services increased higher to attained at to same revenue acquisition at three accounts. of Cost to labor for the of sporadic XX, ended compared period These in same increased were from revenues of of consists period compared ended for three XX, for XX% XXXX the third XXXX. copier staff years done quarter Equipment million of Gross are are large services direct activities business XXXX, September million the $XX.X margins they a the and XXXX. increase and is one revenue

period period ended $X.X increase to previous the for to or period comp same per basic stock-based to to year. cash million per administrative deferred XXXX, At Sales quarter of of compared depreciation million is adjusting $X.X for for diluted and $X.X million Over same compared September acquisition cash the Amortization to turnover attributable $X.X million sales XXXX, acquisition million CynergisTek. income equivalents adjusting for at for XX, we this basic the was million we was stock-based come after for the was end ended $X.X diluted share for million security intangibles $X.X XXXX, $X.X of compared do attributed XXXX earnings next revenue General the $X.XX quarters, the expenses and $X the being million adjusted is of building September for period XX, of the for $X.X to in to XXXX. to as million basic $X.X comp, amortization marketing in the G&A Non-GAAP ended was Non-GAAP the the the period increased expected company the compared year. in $X.X months September income intangibles, comp and depreciation the September per share as income the the at into $X.X $X $X.XX million, gross XXXX, and grow of provision, intangibles, stock-based few services. XXXX million adjusted increased had reported $X.X million marketing million XXXX. three XXXX from of compared continue Net XX, million up and after in quarter. or the amortization and million for we months as adding was $X.X partially of of estimated and back The $X.X for $X.X same of million of due team, margins to three tax XX, the and to $X.XX offset and and same $X.XX XXXX. or to $X.X expenses out in of when CynergisTek the were to increase absorption by to and the experienced recent for basic diluted third CynergisTek expect the XXXX. of million per in for quarter December MDS, same the or to in of company XXXX, from share EBITDA, share $X.X per income again, of which three $X.XX compared third the in million net $X.X of also XXXX, XX, The million and million acquisition acquisition-related operations the XXXX. diluted to the months compared due The and business. same prior

currently to of it. remarks. We for for continue credit on line to back to a portion. million outstanding $X financial line has base and concludes the This I’ll up borrowing limitations, credit maintain closing no over turn subject it the Mac balance to

Mac McMillan

Paul. you, Thank

right projects. model team our exceptional again, are we be hospital importantly, professional please exceed our cybersecurity, advisory the to floor This Operator, the first questions. remarks. and to work market. And providing As and services building for year, concludes close our remediation in placing into investments value. most excellent the service in growing open long-term QX more being MDS leadership in response, name and of and towards we competitive to refining expand customers shareholder look vendor prepared to the move services an and the to and with healthcare offerings out clients and we resources security program that feel making management Incident the our development our for short mission

Operator

our We’ll ahead. B. first with Please go Instructions] question from Andrew take [Operator Riley, D’Silva Certainly. FBR.

Andrew D’Silva

good Hey job my call and for good taking at afternoon. this Thanks quarter.

here. of quick Just a questions couple

that older margins. business, First, MDS of think – contracts just focusing some MDS of on received on kind basis. contract. as just you much capable give benefit was a idea Obviously, of I than the us consolidated there of maturing anybody higher no gross this as type from expecting a Could a had the sense from leverage it you I matured? was

Mac McMillan

in the that large implementations, at there have year. there of quarter, the again, practice accounts occur time, we true-ups specific impact true-up would happens always be extended as implementations Yes, point doesn’t common It in case periods But traditionally that completed pretty Andrew, any us. of which that implementation customers. that that It we the case this occur experienced. every some this much this were And may same were level in had can in with resulted two situation, complete a of the this larger year. in normally than very saw we just have for is

Andrew D’Silva

as And that ones for these that the well? I new you as you companies few during talking the Got then the up the some this same are modeling that following fourth a been prepared MDS the remarks, mentioning last turnover of about mentioned are is year. quarter turnover was it. we’ve far the beginning as guys were Okay. quarters, fall-off since

Mac McMillan

we’ve in actually last Andrew. we’ve our it’s been call. new and talked along, we’ve about then since Absolutely, all MDS then, about and Yes, the we’ve And clients. follow-up had fact, not any added more on that talking

terms right So of – MDS increasing the direction in business. going we’re in again actually on we’re the

Andrew D’Silva

Okay. That is great to hear.

as and offerings today, level cross-selling, be the or Do sides? you into currently. seeing as go, or MDS business it’s the security MDS the you fairly cross-sell just into segments you far business security are opportunities to and As between business, similar see the greater both starting up

Mac McMillan

So it’s different kind opportunity. a And I’ll to explain. try of

clients for Whereas, the So a of have have on there than dozen. we less primarily, because opportunity virtually clients. side, great cross-selling MDS into security MDS a couple we offerings, XXX-plus is the

request the discussion one to close we by hopefully, year, before very next the a assessment remarks, a the certainly, year. initial the – different. for that number to cross-seller the thing of received. just vastly customers, our we in from to traditional those the And alone cross-selling contract, now fact, cybersecurity with that very quickly you And of of that very to heard went positively of positive my proposal. The So that is here that first opportunity beginning is has is end very opportunities brought in engaged to so are the terms expect we far, one that’s right in in been probably

that. that fact encouraged with the are in now of But number those MDS more also customers by discussions And as number so encouraged we pipeline opportunities – one, we’re we that have a by for the very well. traditional

a for future. sign the encouraging – that’s it’s So very

Andrew D’Silva

you believe seeing to if the traction a you’re due traction combined because with you decision leading product that do business? seeing that the of sales Are – now you’re you traction? different offerings are kind do makers dealing believe and that Or

Mac McMillan

multiple to actually we one in and you’re things doing absolutely, with of the I successfully we combination that iteration, first going did absolutely but we are is, correct. and of with it’s customer. selling the that So things, are, a others a different mean,

in the with going and CIO. We’re talking

and Compliance We’re with Chief Officer. talking the going in

the and the network printers, to efficiently, are can managing treating that and of more those has opportunity We’re managing talking organizations them that – in going protected. who their on people also pose in an just risk risk has environment, money those to the something by that we’re their data end those be just connected to that’s save as another it not but to addressing printers we’re point as also to

so giving approach. more And us it’s to stakeholders

so terms And the the offering that offering we in also restructured that how terms us. to was than have we we’re of had of it. we had past, that that’s The different it. customer I in way repackaged helping – I the the think services, in offering those made very But and we that it in traditional sense

compared offering a so it’s to now, integrated have I which into competitors. multiple security it’s combination factors. differentiator our of And – a We think our is

Andrew D’Silva

And Okay, question. just last great.

since competition spurred obviously, any additional are in seeing the this that just there same breaches. ones about stories in you the you’re the the industry Has been within that that Or merged? out far really, new many there’s competitive and general landscape goes, As currently, guys market? so as players, are security

Mac McMillan

players. haven’t say, new I So really – sure seen would some are I’m we there

healthcare believe seen have We terms frankly, And actually emerged we the seen haven’t or even people players, new into in in space. actually fact, run some away. it we’ve of back really quite not, head-to-head that

the So competitive think probably it’s the – is pretty much as but it was. I landscape same

Andrew D’Silva

Thank going nice great. right, All much. and luck good Good Fantastic. job, quarter forward. you very

Mac McMillan

you. Thank

Operator

question Jeff Pacific next Partners. Bash from Please go our General to with move ahead. We’ll

Jeff Bash

Hi guys, outstanding quarter.

Mac McMillan

Thanks, sir.

Jeff Bash

to XX turnover last there’s you over the a my the service or until on you therefore, a providing year was the little so, years or selling the typically very last tell MDS, so. let Could hospital that in and turnover perspective the and itself more comment little company, taking was me bit And over. that been

the I’m to, turnover to. business little causing So are the puzzled who you losing and as what’s

more So you if there, little color I’d that. provide could a appreciate

Mac McMillan

Sure.

that’s contracts. five-year helpful to we’re So I understand think, the looking that at is first thing

itself competition, So happen market the to be and their what they which low in as needed in had with changed least, of, clients to is have essentially, pull that could of to model Auxilio of forward feel felt the They those they with able being to it lot job a ourselves contract, much they built client commoditized a with kind model you will, move the we those of of the them as provided more helping market more didn’t were years we Essentially found got and situation if will, from in continue. a you what of with to to make a host of became rate-fixed they at mean what their The will. in where that enough, a I I whole and in services clients a where great When if all terms be now end the proceeded be up, over And efficient. competitive. allowed conversations, done commoditization environments more that that modest those think, that basically had the to offering a able a it offering, at worked traditionally, of to I get they is, which additional type bottom, front the that very pricing – had I terms end. over. by more very turned and services market the that that more value-based to made if difficult you essentially drove competitive,

been one multiple we it wasn’t competition, just was vendors vendor, those the were As that where one – relates it it’s been displaced. to it’s contracts – have it

that, that and restructured nice though on But want good this still in are are one that compete very and margin them come have with the now an clients like in same additional for all have is forward we in But now now guys adding. the to the we for one what’s so added think add at we is those is in the things driven the that’s – our we instance, many additional of driving being of things being going up up model the where and actually we Virtual, the the things. offering new approach, competitive. the into news and nose-to-nose in, we that thing with put with still past. And went that can started Northeast, time, we the have individually where client, now penny-per-page engagement, all of which things we that because that actually those are to opposed I had as those do

Jeff Bash

got Okay, it.

Now of, not unique with what’s or this, Is which out, a respect much the to your not there competition sort Is for lot instant you’re a marketplace competition? response really service? to service, that? roll of about

Mac McMillan

So response interestingly forensic that it, enough, we the we’ve one like the crisis see a as to to to parts there the which, the is holding months. existing competition in you have what the but XX them different competition different CIO or has focused is like most of actual you we’ve essentially, we’ve way for, incident would or around see opposed on been aspects the service. forms asking or customers developed, we’re recovery approaching out approach aspects the our and aspects been would working And are been that that with that last there, the

managed The group there, just and were to, exercises CHIME we response recently we the you as group service, service that working type be it other thing get to them, us like our Or held lot we service? managed would this like we’re run we’ve buy incidents. to like who a is, want incident CIOs ready that this want make we do a of we sure you you how you focus we just-in-time of that to would want a at other with this want one of we want we it a with, our that to because for environment, said, things a there help to and familiar to, effective. want then We want retainer, do up to when a help us did organization as us help familiar service? were come so know by it’s that went you them of asked with event what us and just in you with that the state on is And high and the the you’ll more and afterwards, that manner in you unanimously with during a be readiness. familiar readiness And our we and be you focus you competitors? more incident systems, it Or our across-the-board, recovery, offered asking with and to an familiar

exactly done. so And that’s what we’ve

suite them healthcare, response. We’ll program service handle another build going exercises incident incident. playbooks rest and very least, build help readiness whole unique And that we offer at table afterwards. to is incident talks then that’s them policy services an – their and component managed building how be independent I of their and when we We’re them where our service around a deploy actually to managed is services to response procedures in and they them posture help with recovery incident industry, offers able around there of, respect nobody to and and the know help and – with then their I and that their We’ll response. for of out the be that run help an and our an will to

Jeff Bash

do to last filed was has with question recently. my it And registration good. Very the statement,

you you’re a million-or-so any Given have, year purchase seem the $X have performance on years. next should and line debt of $X to off at the for me paying hand credit the it showing that that million doesn’t the repayments financial you moment difficulty two-plus over price CynergisTek

interested and are you this I’m at a time? on offering why in some more So registering color little

Paul Anthony

expectations immediate as to organizations least ours at structure. as Jeff, to have for and is go an not anything out do part our in capital with at go Yes, and of prepared registration be situation like It’s our statement. uncommon actually of and least this management option there overall no that at that point, an

right there can expectation anything say that. so do immediate like no And I is now, to

Jeff Bash

saying. what I that have say, is one you first I to want you I I really for I this and call. think expect Okay, Mac, on your appreciate. of say just conference that’s sort but to record And

[indiscernible] handling You are

Mac McMillan

sir. you, Thank

Operator

ahead. Thank you. Please hear [Operator Instructions] We’ll Andrew go next [indiscernible] from

Unidentified Analyst

congrats quarter. on the Hello,

Paul Anthony

there. Hello

Unidentified Analyst

CynergisTek quarter? out break That for the really you would the be revenue helpful. Can past

Paul Anthony

don’t Yes, type revenue at specifically financial. we CynergisTek currently break the out this

Unidentified Analyst

comment Well, on been Okay. to growth on Or it? you commenting that get can integrated as growth in on in the trying seasonality? guys as business just especially, you you year-over-year well a sequentially hand have as any rate then

Paul Anthony

some disasters, a of well, resulted that flat the some as and as about business factors saw the security a we been flat. natural we to that there’s restructured CynergisTek Yes. contract some From in business from acquisition, prior that in really of that number of around that we’re the businesses specific as a year-over-year is services was that the natural some And security regarding we’ve one so... and past of result a number factors: was It’s function was that year-over-year, reduction for then revolved well on. CynergisTek this a our revenue as the of what saw growth impacts being talked disaster, a focused in the traditional of of of

Unidentified Analyst

helpful. That’s

one-off of any restructure? – of impacts in from contract have do is with any sort the particular? So natural you you Or just seasonality are it more quantification just this disasters,

Mac McMillan

revenue. those able it to will we able and hurricanes into deferred more Once we’re our people hit back has go really, back, all turned It’s we Yes. work basically, areas, mean, It’s one-off. into back a obviously, finish delivering sometimes. are to as when is – know, go the go I in there.

that took with XXX% that’s as anyone than go the But contract particular way which well. well. and of can’t with the as in client – happen. you’d just delay longer that back like respect restructuring, – back You now that on as – to, just to recognizing but revenue created quickly – are as a things expected, in we With up as and it

that so event – was well. a one-time And expect as that we was

Paul Anthony

see a item in towards in again, But little a business. traditionally side seasonality may security be do some we the played bit And seasonality. QX. There material the hasn’t

So yes.

Unidentified Analyst

Excellent.

do forward, sense of, have for growth And sort any, rate that so for you component? going guys

Mac McMillan

our our as traditional traditionally wood, very we’ve So on at through XXXX, somewhere is. service for around – all year-over-year and renewal of a are rate, very managed have clients seeing existing been renewing it managed we of in a high successful services, Knock we terms growth. have XX%

service, grow as clients in that. to So expect incremental the essentially, mix, in additive IR patient just tends that year-over-year, add new a that, that actually Adding and an new services that we privacy-monitoring to to we the VSM be pace. will

in of increase some But that see that predict be. growth terms think we’ll what hopefully, So percentage I early might to of it’s – it’s over time. too

Unidentified Analyst

Can nature. senses kind really gross That’s you rate one-time helpful. final of, any, that you’d going run to talked give forward? margin benefit, the those, of, question. about in margin And expect a you sort know I

Paul Anthony

that provide We so. Yes. on specifically don’t guidance

Unidentified Analyst

Thank you.

Operator

Long hear from with We’ll Fisher next go Please Instructions] [Operator Avi Advisers. Cast ahead. you. Thank

Avi Fisher

thanks Paul question. and good Mac, Hi, and evening taking for my

Paul Anthony

Avi. Hi

Mac McMillan

Avi. Hi

Avi Fisher

Jeff alluded this to earlier.

quite you cost and way debt? through asked than your other significantly. any statement. year, the regard any service around talk about regarding He debt about do there efforts? you that Are talk can flexibility when up I’m you either it? registration you you Is any about thinking bump about you bump with that managing can to that, curious efforts anything or up Next have about general the flexibility

Paul Anthony

other is going to on our with keeping them at point, banks, on speed the well but a with on in with position parties ensure were constantly as investors, nothing business and But do with Avi. to as so up at working so, this from There specific this the that we’re a we financial, nothing specific flow just and obviously cash what’s time. good communicating like Yes.

Avi Fisher

my Thanks Appreciate taking right. for all Okay, question. it.

Paul Anthony

you. Thank

Operator

any our for conclude back today. would the McMillan closing will And and conference turn Q&A gentlemen, remarks. I that to additional like over Mac Mr. session for or ladies to

Mac McMillan

much. our Thank look to And thank today call to for you again and talking very forward soon. to like you everybody we I’d joining

Operator

may disconnect. all, again conference. conclude And Thank you will joining. you once for That now today’s