Luminex (LMNX) 7 May 182018 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Luminex Corporation First Quarter 2018 Earnings Conference Call. My name is Carmen and I will be your coordinator for today. Today's call is being recorded. [Operator Instructions] I would now like to turn the call over to Harriss Currie, Senior Vice President and Chief Financial Officer for opening remarks. Please proceed.

to XXXX conference financial welcome our to and quarter first and afternoon Luminex call Corporation's discuss Good operational results. today me, Vice call Executive Officer. our are President Shamir, On and Officer; and and Harriss President Senior Currie, Chief Financial Homi Chief standard following today. our We’ll agenda be our I'll will financial review performance. review Homi the corporate highlights, the and of section our being This will available Relations call recorded is for Investor be replay a six months on website. be historical forward-looking course of within today's may and made consequently the statements for purely may and the of Reform during the meaning protections company Certain Litigation claims for XXE such Exchange Act statements the Section XXXX not the Act call Securities statements. the be Private by Securities provided of hereof and our beliefs control actual uncertainties, the and anticipated and in plans are These that the subject speak are some from beyond to cause those differ forward-looking unknown statements based and statements. of current date only risks expectations company’s known forward-looking could the as or to are and adversely or which on results materially of are Factors differences contribute Exchange Form and filed quarterly on cause in our the or December to our reports such XX-K Commission. XX, Securities the that and with XX-Q year-ended Form could for detailed We undertake update these documents encourage forward-looking and to these no you statements. review we obligation to call. financial as this non-GAAP G, in defined measures, covered certain may Also, by SEC be Regulation Regulation reconciliation to in directly G. with which any extent included that our available release, website most non-GAAP financial of measures the the is in and a GAAP To will earnings covered, financial are comparable our be measure accordance on presentation President our over I’ll now the call and CEO, turn Homi Shamir. to

of quarter first welcome call. and afternoon solid we earnings Good XXXX quarter results Today, for Harriss. to our announce you, first the XXXX. Thank

QX strong was our diagnostic continued molecular by franchise. of driven performance the success in Our

grew which in the portfolio XX% by led the way. nearly sample-to-answer quarter Our

MDx of In a VERIGENE this ARIES went have the nonautomated more just in our panel grew due growth The flu rate blood beyond exceeded portfolio assumption. Our ill expectations respectively. guidance our included and and our of by to product xMAP, respiratory EP we at platform, what XX% result XX% grew and culture severe than aggregate, our double-digit rates. each also season and

to are QX, during we new base sample-to-answer the on on track XXX. to quarter, support XX our the which very system to contract that customer during our happy commence XXXX. trial the last earning growth to year under Finally, in years that active have we closed pleased end sample-to-answer fair we continued and say mentioned by our bring I'm that Based the call, our on to are by enteric continued two submission second trajectory goal ready VERIGENE FDA over and this run for quarter preclinical system say it's XXXX. anticipate formal our our just panel we rate the begun start or month. and and We of well annual million record to $XXX has late this the way achieving are the momentum testing will early of trial or to we of that our by the We GI for XXXX. X the clinical trials previous of end system expected

as trial be possible season we in The participating will over generate said our flu a as close XXXX during together We trial impact. market clinical by X to plan those followed two have beginning XX sites panels previously, trial. to have maximum we panel VERIGENE enteric enteric as the launch initial respiratory

forefront our are Luminex excited believe industry. of in We current reposition about product the very our will which we pipeline, at innovation

xMAP to commitment We introduce communicated a our platform. next-generation have

important believe will years. xMAP the last leader benefits second made that a this all provide commercialize that we increase not a in feature It We market and a to sensitivity, automation is have that the continues new provide industry technology on XX for them the intend of and progress but the and to throughput life science in front system, continue make platform only to XXXX. we good half

to One our low-plex many is system. Luminex’s targeted Syndromic higher-plex platform our of strength risk our with solution provide ability both and with solution VERIGENE

the Now, to about X VERIGENE trial. is start clinical

can technology VERIGENE than at to in independent will enable VERIGENE instrument combine instrument performed The chemistry incorporated shifting assay time X resources unit six Plus a real Obviously, than and into VERIGENE X six system flexibility are best details X with would The turnaround the July. X VERIGENE for to as additional to times, that option. two that instrument demonstrating the less progress allow for we ACC this a quantitative assays backward be up platform, higher-plex power hours. X plan to X can and have provide be be R&D and will X assay breakthrough faster We the late in component Plus feature of VERIGENE this to and offer more new component of component. at X expended we once. the standard performed. We compatible be with innovative VERIGENE run up would interchangeable our our is XX two about these be menu pathogens and be the VERIGENE to both. in system, technology complex increases Each allowing leverage of VERIGENE

stream were assumption, due XXXX. healthy. to our expectation, the but revenue which to The exceeded challenging of XXXX incorporated a QX initial QX quarter consumable with LTG result our of guidance into was compared comparison declined first Our

the our in digits However, the mid-single in grow year. to stream we confident full for remain LTG the ability revenue

in departure it to the they end revenue million portfolio, into still our XXXX between track caused of for confirmed performance account the quarter. $XXX a of of guidance we million. have result take of remain our which This NuSwab As $XXX LabCorp confident on this is the

some thoughts. will financial will final Now review return the Harriss and I afterwards data with

Homi. Thanks

with first well consolidated year. the year quarter the revenues over began X% we mentioned, Homi up As prior

up Sales on $XX.X was our quarter, by and the was XX% sample-to-answer continued platform here on grew driven quarter. diagnostic the franchise, up million XX%. XX% versus of was the for our VERIGENE revenue success platform sales which for quarter. the prior year tripled by approximately nearly ARIES Performance our Our molecular stream

addition over a XX%. grew our by In xMAP little non-automated platform

the exciting continued the increase development in Another per our utilization is customer of products. sample-to-answer

was ARIES For annual the per annual first for up the customer to increased VERIGENE line average utilization has rate And quarter, $XXX,XXX the for product XX%. utilization products XX%. up $XX,XXX our our

for our internal revenue against Our $XX.X was LTG quarter stream the million up plan.

be XXXX. coming that of year, more the in revenues the comparison to when thinking year consumable half revenues, What very approximately consumables order recall However, down X% of you'll the about in select by the will weighted This first a this that back first total XXXX QX the A year. important coming for of the factor XX% keep driven closed mind our of LTG we in presentation. items the this In of resulted for We half second towards a XXXX. timing into LTG half exactly in favored that. revenue first of couple year, we quarter in was of purchases. the in at the revenue challenging first expect result current resulted normalized that LTG quarter with of got half of of XX% higher a the concentrated as of concentration

quarter sequentially Finally X% were from of fourth LTG XXXX. the revenues up

Turning to line items. our revenue

multiplex of replace XXX we not system do the below VERIGENE end quarter. between the sold During ARIES and placements to quarter which communicated range and first XXX per of systems, just include low our XXX

been is QX to keep quarter mind historically placement in factor our that Another each year. lowest system

the by lower findings a compared bulk increase year an partially were grew by consumable our sales Royalty system over those lower the We our and by last the prior Reagent systems in to track to our higher large and both the year. sales allocation base other XXXX revenues for and prior were offset up on xMAP user down prior driven under X% are to reflecting sales similar VERIGENE the quarter xMAP royalty systems, rental in End quarter. revenue primarily for reported minimums of audit HLA in of system with line revenue or XX% contracts. partner purchases Included adjustments. for royalties Reagent In deliver our year rental for partners sales place were ARIES relative X%. quarter communication, by

growth technology in user our adoption a sales marketplace. As the of use of end is of reminder, in the primary indicator

of past the Assay revenues nicely We a XX% and flu million. were with in grew a recent the impact quarter decade. incorporated quarter increase as benefit first XX% products. the regarding season into guidance, XX% first our about into We for the results. as up by our non-automated automated from our number the of the season quarter benefited the flu disease that on extent infectious but our of believe questions increase additional of products But our received benefit a season a remainder we in season menu we’ve testing the Overall, the experienced of flu keep mind, well. $X worst worsen in

of to point Our testing respiratory the business. business volatile care flu less than tends be

of by So discussed The mix, revenue and from the first flu in in up be quarter X year-over-year with the we percentage primary percentage the XXXX, decline decrease from boom-or-bust-type for a see margins We reason gross posted as points the of X quarter XXXX. product attributed point fourth to this can consumable don't before. for of driven fluctuations the down performances quarter, season. XX%

We on of both improvement focus increases and volume to continue efficiency. through margins cost sample-to-answer our

the at first example, acquisition of the the in for For exceeded mid-teens, margins VERIGENE were our time. time the XX% that have

displaying a and was of Operating $XX.X X% timing the margin, primarily by to discussed control expense trials. OpEx previously. driven revenue We our down million continue represented a in attributable profit was of expenses as operating Overall control quarter. R&D of prior-year revenue. healthy $X expense or the operating million to over growth expenses, clinical operating XX% decline XX% R&D

discrete of for XX%, our quarter XX% rate tax effective quarter XXXX. benefit the first first of as XX% The in a to related to Our compared Canadian the was includes subsidiary. item XXXX

XXXX global expected consolidated after and reform. this the other XXXX to full Our XX% federal But incorporating is XX% items new be tax to tax approximately XX% intangible taxed or low quarter rate XX% four rate for full year estimated income. to to including is XX% the year rate related GILTI discrete

with, remains strong up debt in $XXX sheet no and cash investments. million balance Our

investments made licensing license have we enhance over made and our begun or in As million. for portfolio we products. new technologies of to resources Homi deploy Year-to-date, obtained of help have investments $X can that agreements technology mentioned,

to You'll the partner. an end due timing DSO unbilled adoption user coincide closely which an for required receivable the us of more with royalties record in estimated increase revenue to the of note each by the quarter new our the standards sale to recognition

accounts result a XX-K, days our anticipated as quarter quarter cash in XXXX payment not when and to sales outstanding this of one recorded, We approximately of and contribute timing received. we had million. revenue from any our days days quarter when generated receivable of quarter can million recognition in of occur increase the is to $X.X days $X.X our in of year-end DSO royalties noted commissions are actually changes, XX one XX our due over by the an this Prior $XX accounts changes in It and As we to dividends bonuses XX revenue receivable. in in no the that to million. the payments inclusive by increased solely paid

of second little the XXXX. visibility in quarter a Finally,

million expected and Second our million be million, between quarter reaffirm currently and we full-year $XXX $XX.X and revenues $XX of guidance $XXX million. are between to

turn to for over final it comments. Now, like to I'd back some Homi

diversified arrived $XXX from million. Thanks we in Since have is Harriss. $XXX late grown Luminex solid into business. closing, XXXX, revenue million a transformed our In to I

to continues development other pipeline investing meaningful to entire model remain our wisely drive businesses. that and committed growth, Our we cost in

many I organic be on the never done bottom losing times, have while As line. inorganic said this both through will means, focus and

strong allocated R&D cash allows summary, Operator, investment with strong In pipeline, to for search a of balance comments. search we M&A the organic sheet some technology driver synergetic helps continue out to that very the In for growth This core projections. accelerate addition strategic us our our excited solid questions. Nanosphere future to as have about Recently, formal and an exciting to we while we of we for line our to further are that maintained roadmap. open please fill opportunity in attractive M&A end have demonstrated flow innovative opportunities growth acquisition. we our

And Instructions] line question our first Citigroup. Dan from the is of [Operator with Arias

this bit? to sort XX,XXX And and a the answer color the the increase little is to a Or add side? just off you can rate Homi, acceleration is pull on through things level of quarters run the quarter? this Where then, do improvement the XXX for we most sample as a Harriss, model the coming from evident? good

ordering So let more the XX a ARIES past than back periods, pull XX the you when increase months function having for in menu did answer on customers, but VERIGENE have months customers. total combination have those. The increase through previous both or in because increases as the per over look full-year, system me a customers pull is customers adding opposed revenue the comprehensive for of through of that a we of on period. those VERIGENE, there’s nine-month From six, new ordering from to more we three, been

XX,XXX and ARIES. the the annualize We XX the us in of months. say is we look and they customer for purchases And average much who's So for buy? XX bought the over don’t months those and VERIGENE from XXX how did

modest well. a in XX-month accounts expect lesser in period as of a the As percentage far higher continued would we've are some that full accounts XX-month certainly to added, as opposed increases flow additional amount. and total to aggregate increasing, accounts as There's you activity, the

And can thing. Dan, are add at more we let looking that money. the And make years, a I few in - saying only it’s last me we of couple keep customer one

not system we give have to something it’s loan contract, somebody XX a the under that is not So try. that system, to you

commit an a with that buy quarterly a be us - to or couple purchase signed tend an agreement. then agreement to it’s customer us agreement with Our years a and either of with minimum on rental

XXX. a have those to more are focusing system growing XX but and there utilization obviously do customer And we of on that they is of we job I also and we like were continue all into think to we on to would more more year and system. now where wanted. So, those amazing are close playing the ago the And XX,

in as So, we well. keep momentum seeing continued that a

Then maybe on the VERIGENE side.

Europe. market [indiscernible] the a these into product days entrants New in

the One is of of you pull How capability that one the for features testing? important versus much looking panel gotten the so a quantitative attention a eyes on do your loss? platform in do see can then that some of out that’s is you differentiator just How being next. this

more that welcome because I revenue not and about that will talk AACC, we talk Europe, a you most what is to all done company same but we but we one there. a them - the time, The about and it’s that don’t of talked want time of competitive think this big I see But a will to be of XX unveil X and just differential and the also our they X think of the Plus Plus. VERIGENE on have feature come lot we you’re sample-to-answer one in I’d have say about show VERIGENE main announced fast from as well. will don’t all minutes quant than Mainly to feature And the of obviously to reason, so better in deliver. materialized I - some say things. turnaround have of for that, other close the reimbursement in we’ll

this, that safe like So delivering some less to put on potential. be let's claim a can more feature I'm to people and be or focusing about worried Luminex not it

for point in If this sneak at this I Harriss for $XX and how forward new in about one thinking looking anymore. there? could to weighting guys broaden, you want the are XQ don’t terms you Harriss. the XQ to talk I for on But it about talk million impact seems more are versus

gone the we essentially third be under spaced by Working they'll with confirmed out there that Well, the June. the of fourth that will and assumption as and that roughly evenly is you guidance end us be they've across quarterly know provide the expectation but pull quarter.

Leonard from Bank. Our comes next with question Deutsche Dan

update progression Can on you of on trials offer an the the clinical ARIES?

We working are on the MRCA.

one blood in starting of to month; then that's the the make and that you But one then another But focusing this must fall; the ready we again, trial, before are sure preclinical. culture. and respiratory currently the is to of end We have the and in start we Dan, the pipeline go. are we Enteric to in are I tell

to the what on we’ll doing resources we with we opening the the is this we expect are clinical working. start But and that. keep priority and depend Rita have And the year shifting trial will MRCA So them do. really

So respect, in in preclinical that's in we site really of MRCA. couple this to but answer have

So, Homi, we this shouldn’t year expect four in trials ARIES anymore?

blood of No, will this I the MRCA that. trial. all culture and following trial – the two the probably six be EPRP, another clinical think roughly we talking about and three and with were the around then time system talking the around this trial Three about And to clinical year. rest then we’re two of clinical VERIGENE

there, of one go resources with we view third and to point we’ve decided decided that The not opportunity, from that. market ahead

And then…

to it unique not decided a we that opportunity And small was continue.

you seasonal of $XX.X sample-to-answer for revenue much you $XX.X just the tell and from then my flu just increase versus And was revenue million us in follow-up, that of quarter in much how reported, how customers having can the growth business? the million to fourth more in

more we I that as in we season. flu EP. but blood have calculation, said million-plus strong the did I additional think in really you believe with culture not from I quarter say my also there contribute a can remark, is And system. better utilization, the down went that hard $X And to coming $X a a was because it to on assume the automated out very look that again, customer, respiratory we continue add it's and million, the and when of they million but at continue you $X.X more to increase

from Nam BTIG. with Ji is question Sung next Our

that about I value a the Then, X low of wondering AACC at do the to and questions know combined actual customers? have ARIES the I proposition Plus. VERIGENE, well more VERIGENE multiplex talk starting kind for VERIGENE of the going what with few to evolution expect, just was the the like… expect to is as you maybe flex be I towards combining ARIES you're your clarification system as but of

actually X and It’s can on have VERIGENE But based you for the now VERIGENE X. you six correct. That’s the example can can put there. six can you technology - VERIGENE have bay that fit seen but X the or slope -

Now, to VERIGENE running menu system flex high very way, high ARIES turnaround we us enabled flow two cetera which marketplace give by It’s quote which there. to grow all us needed. X flex mid four total faster do a and time, I mean giving et chemistry It’s the mean can put one can if space, the the us that low in will consolidation, customer. only system. be it our in the flex flex, And flex, in low

of I this think game point be view, is industry. complete to a the it’s from will my changer

You’re putting at very same the a of relative device, in all price. them running panel on low same here Syndromic times low-plex a quick and the

XX% I think had a the Harriss margin. alone, gross mentioned before, X we gross margin over where of VERIGENE

a Now imagine can that that. what system do in like

in about dollar by of how So the hundred bring XXXX million - I by couple more solution and achieved now. $XXX achieve here most million to we to really into in a keep think we years thinking a innovative order talking the from market few

by working that’s with share technology, couple going I it a we of introducing have here, prototype So we why we think the you. are relative, and technology this have to

to going really competitor a company strong be that matter very doesn’t to a to and is a a to long or build Luminex, for solution thinking very strong for what footprint our player we not. answer going in are Luminex buying the time. feeling We’re sample confident

season? answer the there there strong Harriss, season also The well? The maybe were was there, non-sample flu other growth or then, diagnostics. the to double-digit that flu driven And as by drivers for molecular

it to want flu, call in I we’re issues growth I call because was flu, mentioned because not respiratory company, obviously. is there There the want to - flu it a I it. Well, don’t

our fluctuation we're a companies so are is that less And other is that obviously, of companies are. all volatile sort heavy-flu season, - than flu-only-type

Overall, as last non-automated. increases certainly respiratory a is in in year. It I of was anyway going as respiratory at what whole this that's line we've there, testing rates. Was item backwards that? mentioned grew. gastro, that season a Yes. and then And digit And in VERIGENE all contributor. respiratory, as every every dramatic double So over portfolio increases portfolio XX%. that a was our one healthy. in grew year, the is But quite but ARIES grew wasn’t That platforms, component it the entire why mentioned Non-automated, saw CF, I we well increased mentioned of all sans increases and there PGx

wonderful extremely a we assay us So of. it proud was that for overall quarter are

then talked more Thank side? to for acquisitions on molecular of not the you you able that's business the or be And on whether about. comment xMAP finally the the diagnostics you. or side technology Would

both of reason. it put Both is that, sides, I sides to competitive businesses. like that. there it’s some talk want And let's the about don't but in

or Ji, at company. their you companies that acquire And didn’t acquisitions, are lever this say, technology. Sung out in us go we These point and another investments deals existing recognize help technology, our licensing can

question Our Peterson Tycho with comes from JPMorgan. next

this the and on contributions side diff guess degree? C. so and year from guys revenue I ARIES what menu you to expecting are if MRSA

all. at not No,

We will year, start Tycho. didn’t not this did this it we we clinical so take this it really account year, the into year, not in get

does you've mentioned change got to cryogen [indiscernible]. selling the change point? you’re you any I somebody whether at any that this selling mean, earlier, curious then in seeing on Have as environment? competitive cycle? cycle in but I'm question the answer the And the just seen

I to for to not us. continue at this - what believe rather we the us that's about think cycle been I And competitors�� we nothing’s But selling for what no, changed selling see comment cycle. stage. is the

let Tycho, for you. something So clarify me

diff C. already big AIDS that B only were three, SF yet. MRSA C. and submitted revenue, cleared Group Two are of remember Strep, haven’t we and its B diff, Strep they three you MRSA. our Group generating If and

diff So C. already. we are getting revenue from

just for last Harriss, M&A I then the funnel. And you one on - on guess,

how terms you’re deployment? curious color provide in it thinking of from could Just about capital repos and if any what you’re you also other looking the at

level more of cash a generation. declared year important dividend our given a a ago. so than capital little And obviously deployment We

at the range probably a XX chemistry worked over out looked well. to to additions. a we and that, opportunities at half, result As year platform We’ve content that’s Tycho, from looked past assays, over opportunities that

So the looking in which overall of we play the to to that footprint to addition in markets order the we're everywhere adjacent markets are in expand company.

looking too are a So I and strange today. don't valuations either too little way everywhere think criteria which too our think are, rich to we’re us little honest, they a I be high, for are

And going close I to will some hand. say of we so we're distant that continue guarantee that the too guarantee not certain have will we utilize but to future looking. able find something to the in be on cash and

you And deal? on able would a - on to are for take you you leverage comment larger whether

lot boxes check. we to There's that of have

accretive, was type that absolutely. company lot that company, was big, the take of could of acquisition, sure on we here a dynamics find we effectively could at could synergies; the change transformative a a For that that,

next with Bill Our question Piper Jaffray. comes Quirk from

Your open. line is

there VERIGENE little XX terms the was placements, give ARIES? guess, you I of towards in color can a us a question automated versus bias First there guys,

Almost evenly split between the two this quarter.

it of be like to this tends turned be than more the most but that. But split, quarter this evenly of time it it up to most ARIES. the VERIGENE time quarter obviously But be much was to tend

to you And upgrade certainly think about can trial certainly VERIGENE well. not get in X, the talk of you be strategically and all how perhaps to an rollout base. would ahead planned I go your Homi, but cycle reaction that of broaden then of kind after system? activity ourselves secondly, my us that initial just for you’d gut - a field But guess that little to clinical automation existing I the as your given try the bit have here customer

a of little in some moves strategic you’re can Thanks you you considering to the about out that market? get So once that talk us just bit the

not the phase the we Firstly, offer Flex now, of are opportunity selling rental customer followed launch and current But we them and make and so or together I hear out them from reagent when sure from new culture. VERIGENE VERIGENE to go most where blood it. customers ship year to to RP and with that's will and probably EP are or X. we together now trying after by extremely summer RP to EP we I'm years will new about a The customer happy mean, surprised from agreement, into the start X.

the it is, very good and the have shall I don't X a to not permit We X It's more what already some VERIGENE all of the the the the why the cassette. reinvestment prices will If as be on think in be decided positioned prices see will not depends on investment reinvestment. we any on get I premium the VERIGENE pressure, If will under assay. come we reason spot. increase

direction that we of multiplexing. And direction. in All BioFire working going a and capable will be some new about what that's installed you assay good working there. our funding And base. after of are probably competitors the our going them you of after Flex are first But mainly, very we’ll new the assume Obviously, a additional pricing. that. we feel on already can so R&D Like we and really customer and know is be very hard

to And then news up draft since Homi. Thanks, on that any it colors. the all brought OCD? appreciate you I

we That’s what know.

with [Operator Couillard from Instructions] And question Jefferies. our next Brandon is

to Homi with quarter, between XX the mix respect molecular? you first the accounts placements share terms to the de-novo new and in sample-to-answer competitive of wins in anything perhaps with could us

of is worried cannot the but I I them few can nicely. something and don't I new competitive. the not of of answer getting, it, find except me et and cetera, really in business very are growing I’m that and it wanted I'm at it's look the data front to I you. Honestly, where accounts few but bet I business to grow them have all

so relationships placements. with those agreements we've GPOs, advantage are is Those little that in lot of a color by those broad the have us more base don't many And gives us there of of organizations. all group and it organizations. the an established these purchasing we a other positive with of because helping over placements refueled there have drive the competitors. It Filling relationships Brandon, our

realized X run see then Homi, share would to gross early I profile the a able as to it margin rate. And what what you relative the us to VERIGENE current little be scale but, extent at with of may you be sort

there’s mean no the X I kind the we level least of to and another VERIGENE probably get on X the doubt same in over if we’ll will mind XX% VERIGENE our in VERIGENE improve at we in XX at that - pricing. continue current it point are

it bottom pricing, Now decided we will to line - the all to if go increase and gross probably the margin. we increase

enter the margin has we asked X. gross the a VERIGENE and gain will well all to that the think number But me as putting and automation cassette the as this have the are to into experience going be VERIGENE job in by digit margin for I'm a a there. close learned that we is VERIGENE think Bill there and simpler too is to eventually, gross will I XX% I cetera. X there we questions taking believe the in so And to them will of X over lot volume on into cassette continues that's of easy team shift the previously. facility, terrific improve from - that money for et we sure, single way - one done hoping the and mean I So to the

we contract will X - to VERIGENE We expiring also have make we into their new customer that are will them out them. be, motivated upgrade after a of because more in to money the a way,

clarification then Harriss. two-part for And

pencil the to quarter, the the a or XX% flu should year? rates, said the respiratory And number respect So for year-over-year for you were your the first and we was tax saying? with impact the what Was impact $X that or you million. to change in XX% relative Is two, to that guidance? in

effective be rates be by factor third would full-year any expected significantly others it. high-XXs tax where you rate items that rate the into is the So tax those But would the from when XX%. right other at question? in fall the a What was without be about in, the that the of incorporates without That in rate, discrete high-teens, discrete the yes But have to to low-XXs. factor number adjustments. effective items you a

The year? flu this $X number million

benefit look benefit, guidance, ways a The year-over-year is flu One against at. $X numbers impact million of to one one there from plans. is against was, are

what had $X internal plan, risk $X we get that is Relative but had guidance in as our halfway it, probably had our the to prior either we really year between for got that is us benefit. current the out million number look a was the So, - the guidance our I it’s Relative year-over-year of benefit we that we in guidance. a or guess at in two. the about that incorporated plan. to you measured the lift Overall million internal of quarter against we

$X against $X So, plan, million million guidance. against

call And to you. showing queue. not Thank Shamir I’m Homi like for questions the in the I turn back final to would any his remark.

look everyone, our a attendance you future. you, thank you, Have your person in in very earning great for in and forward Thank calls. Carmen, seeing day. We to near the

all the disconnect. and ladies program And with and you participating This wonderful in may concludes day. conference. you Have a today’s that, thank gentlemen, we for