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Strategic Education (STRA)

Participants
Terese Wilke Manager of Investor relations
Rob Silberman Executive Chairman
Karl McDonnell President and Chief Executive Officer
Dan Jackson Executive Vice President and Chief Financial Officer
Jeff Silber BMO Capital Markets
Tobey Sommer Truist Securities
Gary Bisbee Bank of America Securities
Greg Pendy Sidoti
Call transcript
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Operator

Welcome to Strategic Education's First Quarter 2021 Results Conference Call. I will now turn the call over to Terese Wilke, Manager of Investor Relations for Strategic Education. Mrs. Wilke, please go ahead.

Terese Wilke

Thank you. welcome discuss Education's first and which call, everyone, will we quarter morning, to conference Strategic in Good XXXX results. are Executive Jackson, today President Chief us Robert Chairman; Executive With Karl Financial and Officer. Chief Vice Officer; Executive Daniel and President and Silberman, McDonnell,

call expectations current we assumptions, the that Education press this Safe on are Litigation of Private include Further today's subject X-Ks, Harbor note be remarks, of these these for for Reform other and XX-Qs Please filings made please release Securities now, XXXX. open provisions has will actual Following forward-looking are today's information based a number in XX-Q cause the with The materially. and viewing Act strategiceducation.com. call uncertainties Rob. to Strategic on future as in at be over uncertainties the and most statements on and available the to I'd press to full Education's questions. report recent could And and Strategic that may differ release call to Form the about results risks statements Strategic of ahead. that identified may Commission pursuant website filings found other XX-Ks. Rob, are to XX-K, and relevant annual as Securities filed turn the the and to go Copies well Exchange like of Education's the

Rob Silberman

which good in first anniversary sense the also and ladies report the at first year This of a pandemic. of the of second start morning, quarter half. impact the with report global to coronavirus the good and coincides and calendar half gentlemen. we Terese, a view you, of we point the coincides earnings a Thank with of get X-year have the This

into through a and year. us open will forecast. the our our comments both go of more Dan has and concluding QX the walk and we do I'll than normally segment going questions. this up little it financials Karl individual remarks balance on we outlook results on Karl? then As some such, detailed the of the for couple both detail make the morning to to segment on before results a we're also

Karl McDonnell

better over you, and discuss higher of year I better morning, as results. consolidated in our morning, full whose Thank results on universities, quarter owners well segment, understanding first impact intend quarter. to provide financial New commentary the This as our U.S.-based provide in This financial Strayer a everyone. Strayer the University, is operating addition Zealand's and U.S. largest our is more on education, with outlook normal good update beginning Rob, to Australia segment, discussing results, seasonality to Capella. the comprised contributions company's my assist which of as detailed by to the given performance two a performance results, well first I'll mostly our be also year our full the Strayer challenged University's and our remains understand as of to as for I

decreased XX%. reduce revenue generating is which XXXX XX%, the which reduction largely education that operating a $XX is $XX The enabled now higher prior U.S. quarter, savings. us complete, of of by higher and million million in first began the For half second we to expenses education from the restructuring year, U.S. of

higher in challenges year. contracted while the reduction which the These increased the a enrollment X% $X their $X U.S. our million from is of segment income Total higher year, quarter, income million. result, Strayer's prior XX%. first within from million decreased actually Capella's operating a U.S. $XX operating for As decreased prior declines the education as we three drivers cost performance attributable to I'd what like improve to believe University. these standpoint, what Strayer And see a doing as to this at ongoing and enrollment primary well the results performance challenges we current we're From describe education financial morning, the challenges. are is to performance results. causing

and created continue see Strayer more shutdowns demographic for on We the restrictions economic year contributing as the to than COVID-related declining to the past the student hardships factor the from largest performance. their

enrollment first-time adversely labor a diploma, time reminder, high distress economic the new over impacted. attainment cohorts segment student of As Strayer's X/Xrds highest school education at students, period level of any during which of force the the are most their meaning college of a is of is

yield have investments. which to also competitive resulted a see our inflation, increase begun we intensity, of the sizable in Secondly, advertising lowering marketing has in

communities on students to have the performance the that albeit in new pandemic. were from and enroll almost the in operates the engage operate. taken points applicants has level. has Having fourth the admissions with in generated aside at applicants, online performance various built prospective rate to to student begun XXX% Strayer challenges can see with was also and challenges percentage system Strayer decision the the each campus at new first gradually, network of as a basis which the courses of are last date. to whose before fixable advising consistently continuation that improving measured FlexPath, since Capella local work week has is is notably, abruptly XX%-plus spent presence improvements but have growth students all for now, their been pivot have adversely presented many that third, to a which Capella actually of enrollment remote number Capella, the enrollment process the within more years has students. and the certainly to to handled been course, impacted for XX established which steadily, quarter we launched. local same but in which our I down is new the per being environment and also competitive areas. with by a do making shut greatly year. the we operational prior processes the serving and inquiring growing of same And since Of along basis nearly time in admissions, Strayer, year-over-year of university Also, for demographic, student campuses of than key operated XXX middle Most see year identical metric Strayer's say with the first into increased from university, metric since Strayer's hours some people improved speaking we total ability week that advantaged quarter

levels strategy strategy aligned of Our partnerships. to corporate pre-pandemic and growth sustainable affordability our on initiatives involve performance ongoing Strayer's to and recover return new to to focusing

subscription enables large weeks, the launching that of employers be couple increase without of will tuition greatly their benefit. size expand a to to Within the overall next we of assistant benefit reach the the dollars new education employer-focused product having

new convenient limiting a first includes opportunity Strayer's and four for experience, We for first versus will year. any term existing the year week a new them start student that also during which instruction launching student it their is to be academic begin per to dates

new month, and campuses substantially We the are engage And will to open our technologies the all, to implementing end ability and have students. plan reopening if with our next not team's over also reopen with most, before finally, to of plans XX clear this of until communicate improve new us improvement, campuses are some that is by Notwithstanding could and we fourth it emerging return year be to Strayer's half to the stabilization that the to these is growth quarter year. not first the signs of XXXX. student delayed occur of of and likely

year the enrollment see For down total to full XXXX, be higher education we U.S. at XX%. approximately

our which of to products. three primary consists learning alternative segment now Turning

college American credit. of of an platform direct-to-consumer Council courses, our Learning, Sophia First, consumers offering college to level way earn education-certified ultra-low-cost

for XXXX, to a more $XX the growth which full Sophia's would be Sophia's the $X XXX% months the Currently, rate than doubled revenue for above first year from the we prior quarter million. XX preceding million expect pandemic. to exceed revenue year

plans in at Beyond this for million our to to Partners XXXX access enables institutions. $XX their tuition better generate Sophia network million companies year, management provides companies $XX and proprietary Workforce of our building to a planning SEI those manage that platform business. and is least medium and it Noodle SaaS-based and education revenue ultimately small, assistance large we're benefits Edge in to with

into increase Strayer normalized across prior expense year assume, And to Monetization our not first year, the products, a stay manages is employees already able say Across level platform the run their of to in the first X% the as these is XXX,XXX goal of we for operating close first support rates, of the of Strayer Capella creating partnerships team front-end we other a to to to total universities. our goal of year why at $XX Edge points education both least from Unlike enrollments company. incremental couple seem and and to the lastly, Employer now and growth enroll. flat Workforce expense which and of managed employer-affiliated employees with this these we Edge year. is grew product operating learning resulting through and have over Strayer competitors revenue from Our participation million critical of XXX,XXX the mass universities. the loaded next this partners their Workforce Workforce many to I'm enrollments to pleased $X high income benefits education years. Their on for current use of either the incremental occurs understanding all is enrollments the operating gain income universities, set employer-affiliated year through on range does the at platform as to their into in mid Capella the be it XX% and and corporate during for platform. growth have our should have balance market quarter, quarter on enrollments invested already X% alternative basis capture our or increased $X between employer for in free works Based years learnings and million. is the also unreasonable These of sign we rate having million XX% course that to somewhere available which Workforce Capella ahead. first further to surpassed as main the primary of investments full in possible, relatively of of for us again, the two employees benefit space, Edge's up XX% year. Edge to revenue been from to platform goal priority total the traction and XXX segment the alternative the employees were prior as ultimately, has of access And should year in Solutions XXX-plus margins nearly flat

operations and budgeted of full quarter enrollment. SEI Australia and first Zealand their quarter under during term New Our its the segment first completed achieved

Zealand the remains from fourth the SEI of Education. on New which to QX pieces and was end to University three operating as as in have share You situation seasonality U.S.-$XX loss quarter other be Australia track we we last and fully attributable to the year. the from segments; Education year this full in understand of full challenging income EBITDA targets may transition Strayer quarter close decided entirely their a our best expect platforms is and to Laureate of a our and the we of level system's to of finally, want The the to moving achieve the of infrastructure because million current recall Australian on at we A&Z decline owners to segment outlook. segment small had slight impact revenue from timing assist the mostly by our And second performance year $XXX of attributable well completed year respectively. fully Laureate of and million The to

we more $X.XX I'd And detail. the our $X.XX. adjusted between ongoing my through for professionals the to in to For And million share XXXX, following deep faculty, I'd as billion; ask our between between financials that, per commitment adjusted walk the other success Revenue our and SEI our to billion with at a $XXX students. and of see and earnings of like Dan our million; to administrators always, year $X.XXX gratitude EBITDA express and full performance. $X.XXX little $XXX ranges and their mission and

Dan Jackson

non-recurring, just results and Thank first, morning, just remind the acquisition going exclude and and a everyone expenses I'm performance. comments. few you, are that Karl everyone. But described our much covered good wanted and has to adjusted Karl to charges merger, already of costs. and outlook non-GAAP I add Karl, restructuring that are the that QX including

Now a on of the couple notes quarter.

New much consolidated Our result lower a in flat bad in last declined upfront. debt payment Zealand, and larger X.X% due our X.X% and bad generally us was portion year. Australia debt to where to from bad U.S. This arrangements the debt in collecting tuition relatively

X.X% debt the bad for X% year range. in to be We to the full expect

tax the full still QX due Our We're Zealand. particularly from We favorable was adjusted XX.X% Cash quarter quarter. in a New the rate the received our year. in was strong dynamics XX.X% working capital effective forecasting for for revenue to March. Australia tuition operations for portion of and

this end the free to for to will likely of of distributable year reverse income. We year adjusted project see towards some cash than our better net but or continue the at be the benefit flow

the Our and $XXX our CapEx CapEx million million. securities ended at $XXX This we million continue related equivalents the was timing And $XX.X mostly quarter available to to in a year-over-year of $XX on credit full $XX.X of year million cash cash, we to revolver. marketable little of Rob? million to $XXX with million and was lower million. expect approximately and finally, compared $XX range

Rob Silberman

Dan. you, Thank

couple So just points. a final of

a SEI well all healthy performing sound and contribute in challenged very enormous University Alternative terms disruption, Strayer history. of enrollment even surplus. a operating growth, stronger today our assets, than stable financially and are any is the a continues is institution First, in Learning division financially and year somewhat University, economic to Capella more and point its both Australian After at of

fund academic the we of stability believe primary which be years, our Studios, merger and with students one Institute, improving our and investments synergies; they financial increased can to Zealand our SEI's of and and cash will have any a the the capabilities $XX strength, more have but to wide focus revenue, improve healthy including Strayer including and technologies, continue per annual of given academic our over than SEI. future all Australian Management capital also we'd the institutions, the per coronavirus have assets. the be the of we strength entity. These student most growth Capella our and us investments our in to share not yearly founding operating share finally, today provide what to resilience generator Education flow to across Therefore, because in variations just increases Company, investments Jack would pleased financial in of resources resulted has only last our result sustainable and of the to return the and opportunities navigate on current through revenue which earnings in performance is continue the owners. million to Second, pandemic recent our any of at academic is absorb academic enrollment value And to our purchase otherwise New of And and significant been significantly XXx outcomes the finally, Welch over questions. of FlexPath, of made SEI operator, XX answer our in our company program with the that,

Operator

Silber with from question first comes BMO Jeff Capital Instructions] Our [Operator Markets.

Jeff Silber

and of the where occurring earlier to parsed some out the the details. I Thank University. that you issues all Strayer some comments go are back appreciate wanted to at of so you much

give don't us focusing that if shutting more it I you an that's that Specifically issue? was figured a discuss been this campuses not something bit when you either happening? you color just have you called on Obviously been the since didn't can shut publicly, of beforehand. exactly aware out think were but it the or campuses, this out little have Is

Karl McDonnell

It's we work have and that the largest along economic recognized think over the demographic, Strayer designed said admissions advising we've that and who's monitoring process the hardships is student college all the factor being local that interrupted level experienced year. had that in we student, significantly a throughout Jeff. morning, somebody first-time by but to the Good Sure. been single enrollment at past that been something also We've a year. was we and has last just

So we impact. had do believe an it's

focused can that now so focused year increasing, but why that subsiding, of we many small, to end we're students. the with that and that's resume the between as we we it's seems now campuses local on are reopening virus the relatively have vaccinations think interactivity we're can I be that as

Jeff Silber

right. fair All That's Okay. enough.

a again, impact smaller intensifying. mentioned, You being competition

some would on competitors more as these some impact have well, that that new give Are about talked cost. the But you been these think to of competitors? competitors just a losing are color share great. or If advertising their just around for I are these you that be are us can ramping up there while you advertising?

Karl McDonnell

Sure. It's two-fold.

seen from more We've So I there's seeing are channels. resuming for or I advertising several the all all sorts competition we're across that that are say first, their education as past traditional more would years all into well of organizations, as space competitors entities think companies advertising the across budgets. that smaller And that increased large just moving postsecondary now online we've regional some as then, seen inflation industries normalized and post-pandemic.

So well it's just are in I postsecondary think increased as advertising expense combination the seeing which as some companies all inflation, a of competition space.

Jeff Silber

Okay. going Plan, the a that, funding you I cetera. there the influx potential announced those of see with potentially forward a giving American you colleges, organizations. a But money competitive And of to just as yesterday do being work off President lot the et of lot to threat well? know community Families for HBUCs, you of segue

Karl McDonnell

our which Capella enables you that Jeff, we've on is been of Actually, by education free. portion for Sophia, which many Strayer done, general their tools thinking to courses and already years significant know frankly, we've integrating and at a earn focused for student affordability, current like as a

students. a is alluded degree new it a actually because at get that Title University sector where in be other trying And as if Investor the working for when the is that year that Strayer we or first payments IV then, of in you even public Day in to courses something particular we've said ultra-low-cost as thinking aligned first corporations, going the a we're it a responsibility to the program integration for best would from the with tuition little vis-à-vis general year almost it type to associates the our with partnership who strategy around comments, either prepared to the the like of ago we've eliminate are transferred I implementing and/or bear an we we're to us. I of no edge of cost students. my for interest need in paying that we're of students outlined We year cost or involves at It's that eliminated that free much experience toward. that ultimately the can through for Sophia herself, a more degree, than the has corporation him student, transferring things to with align

Operator

next Our with Truist Securities. Tobey from question comes Sommer

Tobey Sommer

With questions. me Thank on to need feel to of recent you. transition. lot online competition, one maybe that that emerging entrants, Follow-up respect post-pandemic, make the these a occurs it institutions new to of

where of impact? sort the has played we've everybody who tip iceberg is think as out you shifts of that the this Or So to online? this seen wasn't online

Karl McDonnell

broadly that digital. will is of view, expect being the was education we even and of point competition plan Well, We increase. I this and clearly see think our over -- pre-pandemic, future

pandemic point of view extent majority to had realization. modality, the would they time to. to that the realize only So weren't has that clearly caused it that a teach matter institutions of our was in of the in The able online they

advantaged differentiated with it's I so, corporate to very which deep we is much are advantaged clearly products as have culmination XXX-plus. degree, ultra-low-cost for combined ways And I've of an And Capella around partnerships, or that Strayer, saying programs these with to the for been very said FlexPath. looking everything continue having or

do a has begins as So would places both ramp over and in And enroll competition. sort able XXX,XXX have that then, is increases and employees we institutions the Strayer. to continued see would Edge to space in be significant university, our those from employees that as be for Workforce advantaged insulate we of start that the differentiator what feel to up to them as of in going

Rob Silberman

mention on are been should qualitative going that Strayer side, all the Studios, of you have Karl, improvements the that First, we think made to... academic

Karl McDonnell

technologies Yes. Well, instructional studios, center, academic and our XXx faculty to but model, these success are drive all our just investments long-term those designed retention. other in really help around not action

we've that retention things for the rates, prospective differentiate And on in you to front get that and so, traction so are and completion we end, forth. will, things so long-term to got then that new if the in student motion get increased a are designed designed classroom

Tobey Sommer

Okay. vice looking Education costs corporate a the would That's switching helpful. what landscape competitive or towards as to you corporate on to look another the relationship partner side, describe Could move Strategic a like from and institution for versa?

Karl McDonnell

this employer employers like provider that of seen and of, span our the universities at I the really and that Edge those year breadth area, we degree-granting offer vertically a the an Workforce can for our because, with free relatively I switch We're and a Workforce able no And from our of gone think given it's least to at main quarter. XXX,XXX competitors know to scale again, did tuition over employer a advantaged, We large of Sophia only is compelling. the we've on integrate alternative I from the assets. one very where of that think actually a have bundle Tobey, standpoint from are in to on-ramps company is one accredited be affordable use. employees start quite on to to Edge to price point just the having ability

large Fortune our enterprise benefit arrangements education to So an from that corporations large standpoint. ability United knowledge, I'm my is in And SEI differentiate XXX add to of provider. organization continues level only the level States vis-à-vis in to very education the the confident

plan important years for for of very be business least major XX% year an we're investment part the and will I it's a that us. to in as So grow division ahead. alternative that said, this area our confident at of We it

Tobey Sommer

to student respect does your for wage of minimum ROI school, look go choice a back perspective? With that way calculation from to Okay. may a kind calculus the at me. it the sort for or of demographic increase is target to that in substantial influential any potential And last your in question the shift

Karl McDonnell

I would doubt it.

the as they're and levels one is increase minimum the Strayer, I extent rely our reality reduce to low partners, a and the speaks of cost to many assistance It And particular, we employed at hopefully any to degree think to students fund expense But education. the being of a grants for can federal the on the out-of-pocket of higher corporate for strategy and catalyst tuition in as students. our to aid. debt and minimize in an I way of don't in see enrollment. wage their

Operator

Gary comes Bank next Bisbee Our from with Securities. of America question

Gary Bisbee

me with on start a learning alternative Let corporate and couple overall.

put split? us that segment, trying relationship, corporate is understand like the to one the royalty universities a its revenue? of think Or how new exactly the for structure through this now And can I'm out a margins first paid all, of that's student you the segment. in So what's economics this? of how help in enrolled does, through to own you've what's are maybe if two your cost

Dan Jackson

is this Gary, Dan.

is generate a the Solutions those to agreements doing of group employers. then, the all, of alternative Sophia. XX% with transfer that Employer revenue And enrollment. it essentially those employer-affiliated about to it's the activate on rest agreements and based that's First to is related it's work essentially learning team, And

the revenue. of growing driver that has in biggest far Sophia the is growth the most and by rapidly been

Gary Bisbee

Okay.

been we growing notes the What's employer at in and as the you been believe the in look employer segment of XX grew over through in move will year? enrollment that environment? XX enrollment, the from I It this the those nicely if as showed the looks drive continue year-over-year rest current relationships your percentage then day, so despite last you you other driving today Do like actually in time. sustainable quarter And affiliations And to challenges. it was that, to the X-K in say, new how well. months? that is it's guess And the I growth

Karl McDonnell

healthcare-related speaking cases growing employer-affiliated But has XX% growth Yes. is We that less. which has to quarters do some been to employer-affiliated been that past Capella, return Strayer account The enrollments in field-based activation. now the management of of team will Strayer's the local mostly importantly, expect our year-over-year. you're continue in been really of just couple able at excess to growing over growth has grow. partnerships XX%,

have Best the we a Buy we campuses regions be up. which CVS for do visiting but out and as open like we with relationship company better of our teams the forth. an stores now to when so as So have a back part or historically, stopped That various the in would example, in year has started

And even things early of metrics, or very the new actually some into universities inquiries would include applications, up the the they're which like significantly over prior year.

and the to at Strayer-related now popularity level think higher going of of our in healthcare, Capella engage to do on the universities. being for particular, partnerships continue combined drive we with So we're a the both that's corporate in able FlexPath confident Edge, the ecosystem Workforce at continued and of enrollments to employer-affiliated combination growing local

Gary Bisbee

the on but tremendous healthcare, you've now, the the while nursing last you And Capella talking topic couple last about that been that this on a program for like largely discussed of One over success. years? one is

Karl McDonnell

A large a been roughly Students the have is FlexPath finishing are that in part enroll in year. BSN. in the of it program that

a nurse to it's program and a has needs of or lot who her career. clearly the credential further perfect his So almost for practical knowledge a

the and program. see continue lot in demand to big been Capella has that side driver strong that on of a we So the

Gary Bisbee

over. Great. And then I'll just it one last one and turn

go in those beyond learning, quarter guess And different Is you last you QX? I on next you of QX. the made QX versus the been the that is -- in you So there this say materially great progress most program into there expect front? said anything started fall, have safe to of terms cost the that couple $X it alternative in achieved? saves of million more investment Or investments quarters is you to the

Dan Jackson

have -- will more finished at in there second a of the quarter. Gary, that few this restructuring are point, have pieces the

So we'll we're of but investment additional rest the Karl investments year. some still the the the throughout speak reinvesting through of on will And be some I'll there because balance year. front, of the incremental specific investments let savings have that savings the to

Karl McDonnell

Yes.

of said, in for be may primarily learning quarter. as here in good run QX $X their small the timed to would the but first step-up As rate from rate very be Gary, the incremental a rest I alternative There was run on I OpEx the year. use investments million

Operator

Sidoti. [Operator Pendy Instructions] Our next question comes with from Greg

Greg Pendy

Strayer color thanks but the pose to on for of just question one all to And you. kind

On the strength what capturing the you nursing you're Strayer with curriculum it I students part trends how which at the the seem heavily on-point right problem? in now, Strayer, and obviously is alluded of to that the STEM demanding, to be favoring of and are given but at Capella, -- nursing, struggles much through how is is mean,

Karl McDonnell

think that got of it's degree continues popular a of which not somebody to very we we've Capella's most education. best don't great push be and baccalaureate enrolling. for or different period where is to Again, And reluctant that Strayer administration got of nearly And now the And that have metrics presume student's curricula. distress not with talking to technologies to still the in a I What we large, confident that we students interest. all going that to so. We've and enroll, a we comfortable they types have just be of institution to the course opposite. very of Capella, economically. that shows in already than because in very segment but business won't talk they're by And business, students, college data, level feel specifically not best because under got degree have. that the identical to in student having over the said about the students be been we they're conversations, exact that students. great confident back only the necessarily And experience interest students. two data to XX% It up of it's that you're certainly we're a that and when it's at same and either. differentiated room, to school they've a program. enroll XX% high still look this we're we've remember, tools there enrolls, bachelor At More first-time at the this everyone just have student. we're don't a able of We've

And enrollment, program it so, means it's economic condition he so confidence that our or have improve when Rob wide a in we're degree to take enough comfortable to that for student's because to she withstand the variations quite waiting we're does on the rigorous. says able

student or fact to time we last to But Aside right him has for the confidence may for been ultimately we're that that the has the can and from enroll hesitant, any the her year. be doing do they the friction to may exist. have that everything remove not that other internally, the operationally that it's case

Rob Silberman

standpoint. Hey One is on other Rob. from be helpful Greg, an this might comment that external that

of some which rates. years participation XX from looking enrollment standpoint, back of watch And labor been over describing or pressure an statistics this Strayer economic University's declined to Strayer Karl metric for rapidly been have has economic external sort reluctance challenged the last those rates. define is history, labor participation in the if look that you're University is periods periods you at when alleviates If an of this

of up, we and us you'll right see students. but mode attitude because of that kind change as to go kinds just not operation for think reinflates a economy sort the the when of it pre-pandemic of we're back that's up employment confidence goes employment waiting I brings in the As comfortable goes

Greg Pendy

it's that type it, types more just sensitive, than would of other degrees? economically say I or be degree might student Okay. that that to take of fair Then

Rob Silberman

been our experience. That's Correct.

Greg Pendy

then And one final just one. Okay.

familiar Just you Australia can with as in assets, get picture? of target a big us we the like just year and Zealand revenues. looks $XXX million your New give full kept It you

we Just cadence, given should thinking XQ? the about what's cadence, the seasonality in how be the

Dan Jackson

the biggest the second biggest the third the the just far to the are then, by and fourth quarters And contributors first quarter bottom-line. and probably is Greg, Yes. quarter. follows the quarter

the going be quarter. is quarter than First the always to lowest fourth

Second pretty each in and third with line other. are

Operator

call like to at I'm Rob time. turn questions queue this for remarks. closing further no to in back showing Silberman I'd the

Rob Silberman

operator, you Thank thank and you very all for participating. much,

and call us look to we If you to free have to again feel next additional talking please questions, forward quarter. you

Operator

call. for conference Thank today's participating. concludes you This

disconnect. now may You