Healthcare Services (HCSG) 24 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to HCSG Inc.'s Second Quarter 2024 Earnings Call. [Operator Instructions] The matters discussed on today's conference call include forward-looking statements about the business prospects of Healthcare Services Group, Inc.

For Healthcare Services Group, Inc.'s most recent forward-looking statement notice, please refer to the press release issued this morning, which can be found on our website, www.hcsg.com. Actual results may differ materially from those expressed or implied as a result of various risks uncertainties and important factors, including those discussed in the Risk Factors, MD&A and other sections of the annual report on Form 10-K and Healthcare Services Group, Inc.'s other SEC filings and as indicated in our most recent forward-looking statement notice.

Additionally, management will be discussing certain non-GAAP financial measures. items these of reconciliation to U.S. A be time, I can to Wahl, Executive found the in this release. At Ted Officer. Chief and press morning's President would over this call GAAP like turn to ahead. go Please

then good financial and my us of morning QX developments. discussion the to share the of half outlook the discuss and provide joining and to Matt released the on our appreciate trends We on opening filing perspective accomplishments. and on first I'll you, McKee on the our more our and over morning, Thank quarter. rest today. second results And an quarter year. provide latest end a industry I'll our in remarks, I of and priorities key the second I'll week. I'll our highlights plan Today, the then year you Matt then this turn detailed by lastly, for everyone. XX-Q call update the

overview, now like that So to QX discuss financial and accomplishments. with I'd highlights key our

June the restructuring months cash $XX.X $X.X expectations. million. of with from revenue million, the of diluted $XXX.X of X impact and which million reported we reported cash operations line $X.X XX, loss $X.XX, includes per in and adjusted XXXX, share operations in million and loss charges of and used $X.XX client Net of For flow ended flow

managing cost excluding team service another services, Our quarter execution, of strong delivered of within to field-based range. our leading CECL, targeted successful

funding last highlighted cyber-attack and meet adjusted in collections showed encounter period year, compared the but supplemental supplemental accelerated for us flow short receiving our CMS' our and but late funding. of XX% Healthcare May. Unfortunately, same many affected improvement importantly, to Additionally, advanced applied objectives. fell last affected cash track keeps we quarter QX last clients achieved April delays during issue those We Change of expected early majority payment of XXXX the and that cash program in to which the this quarter, and customers February on over to by our target quarter, the that

all $XX up million As of today, make million our collection cash supplemental that we affected the to to customers why funding, confident half have Healthcare-related is their we in million. $XX reaffirming and are delay expect adjusted we're in of $XX applied year, received back range flow Change of the the million XXXX of to cash which our $XX that

financial seen, positive level. XXXX CMS' adding the to to pre-pandemic industry a Our a low steady now over occupancy, Care sector's reimbursement our restructuring current rates XXXX proposed impacts in impact like few a XXXX, under of include reimbursement recent with announced results state second events rising the filing. XX.X%, base. I'd is opposed January it of course the as now the years, that XXX,XXX positively, increase previously result X% only which quarter availability conditions well environment, increase of term, the health The activity as by and fundamentals industry levels as but since of higher year fiscal the including further of slow we've Industry points and just for at stable restructuring of also than workforce continue And the at past strengthens and developments. trends XX beginning trends Medicare jobs quarter longer customer perspective while over results, includes Chapter the trend sits in X.X% highlighted continued the which LaVie's, our XX share LaVie Centers' to second the occurred latest our the the state. reflection this on and

not be the or On staffing administration final rule and significant during or given either pending legislation will especially revision extended minimum CMS' believe implemented, undergo will to change. the for front, the regulatory the phase-in we litigation continue potential period

Care the Health a XX. American are as Texas pending the litigation, District the former Association, on a the Texas in Northern lawsuit by to Care They it of Texas U.S. represented Association relates May Specifically, Health SNFs and filed X

arguably Solicitor arguments and ruling General, their SCOTUS' Chevron top the doctrine. constitutional merits Paul very and and lawyer. even bolstered are further case recent Clement, today's plaintiffs lead the overturned Court that believe other Supreme on the the by ACA of strong

remain priorities into As of we our X the the head year, second unchanged. half strategic

of the First momentum targeted services is XX% building range, cost achieved operational within our the quarter. continuing to on in manage second

Second is growth. driving

$XXX our to second QX QX million respectively, estimates year half $XXX and to and million revenue $XXX expectations. million million, top of We our $XXX are reflect to raising to line

collecting is what we Third bill.

our continue gain collections challenges inflation. and these the a reaffirm record changes, like of to depressed wage forecast to X unprecedented number on and past Clearly, disruptions to over of and into still ownership adjusted expect cash The cash years million workforce further clinical XXXX a operational strength months priority, not driving flow to significant ideal $XX our next conditions levels the growth. footprint. COVID-XX, second to presented elaborate We to including our million. I'd of $XX rapid X our and industry, were exodus, have occupancy expand XXXX

which Sector we assess positions for growth. multi-decade persevered clients on the ability benefit customers. Most to organization pre-pandemic importantly, for has potential perfectly financial an have to will secular the exciting confidence our our for years growing come. to is stronger, as to However, approaching us This value and existing shift back our the industry is truly capitalize sector been dedicated focus never that both time have tailwind new is of stability the levels, rebounding. and team occupancy and we our our in members steadily proposition

reputation that top and value we've commitment customers identified abundant our to our the proposition, new We talent, our are growth. on achieve by will on capitalizing confident while we deliver leveraging line existing to opportunities

to you the eager in are progress We our years. and quarters share with coming

position of year, second we and to priorities and in business confident to long-term shareholder in remain boost meaningful deliver strategic profitability, our flow the cash fundamentals and us So the closing, half ability value. growth strong in our

for call the introductory So more those I'll discussion quarter. with a detailed Matt comments, turn on to over the

million Thank and was nutrition reported or XX.X%. at to million or segment company's $XX.X revenues $XXX year of services second line million, or to or $XXX.X with revenues line were estimate the half includes related million. of and bad X.X%. liability Cost and to you, expectations. Cost in Dining CECL good QX top services & included and X.X% reflect laundry loss Cost And million a were everyone. Revenue million margins client trends. and million estimate our Ted, $XXX.X QX to of restructuring and expense, was workers' $XXX $XXX raising activity expectations margins our X.X%. of Housekeeping million also aging-related compensation services $XXX $X.X segment million million we're our expense. to million to at $XXX million debt development or and of Of revenue and X.X% favorable revenue million & debt of to related expense. the morning, $XXX related X.X% to $XXX general $XX.X X.X% $X.X benefit $XXX.X reported million bad to

of impact X.X% in in or X.X% the income to and were $X.X XX% range. share share, includes range. SG&A deferred other the or XX.X%. manage Net different adjusted longer Our the per X.X% bad adjustments million company or in diluted or in Cash cost $XX.X we continues prior debt adjustments operations $X.X the compensation, calculation supplementary is share and includes $X.XX and loss the increase restructuring that EBITDA XX X- reported and million XXXX, financial information. million $X used disclosure and respectively, days. was quarter to mentioned and X-month income $X.X were at quarter our to and Accordingly, operations a for Other calculation his adjusted analytics be EBITDA. services will deferred our periods cash per million X.X% X.X% at no $X.X $X.X million in XX, loss charges million compensation. those which for goal EBITDA and of ended for $XX.X was from and was be the Ted EBITDA of used adjusted in flow including of DSO million actuarial or X.X%, will at from SG&A in remarks. Adjusted in as and flow increase was periods. million, per to achieving of the reported June $X.XX opening items SG&A adjusted reported providing goal Instead, the a includes or is continue self-insurance be client part

call the those remarks, we'd to now for up like with questions. So open opening

comes Instructions] from first RBC. question Our Sean from [Operator Dodge

of Ted, through year and talked you payments full cash million the improving backdrop. the $XX $XX the collections coming supplemental and reaffirmed target about million to

what around pacing towards anything try look more we there as explicitly to you share understand to Just you this, expect of the like? can is QX kind

services quarter. we've it our the cost know it opening that how which important to we I compare to to indicator, today? of last the it's as of over do collections cash significant are note you and of during compared range being about we Sean, remarks, and talked -- in the you certainly lagging when think especially showed short same the the quarter. seen targeted recovery. I of XX% now the you trajectory $XX the for did growth. it the speaks And to cash XX% had million our fall But consistency industry re-ramping quarter's $X Yes, we've the and million highlighted, know I noted as recovery collections last year the improvement to period in of XX%, a really that

to that that So continue view. -- we hold

QX expected end late and what those keeps cash day, of on that who to ended it our early in late and in we've the that clients importantly, think objectives was half reaffirmed some of this and that for we've those of to -- I ended advanced on first what track up year, in shared -- we've the accelerated ended where quarter. At being having payment CMS' delays flow QX, performed up us the an receipts. applied up May, XXXX payments April, happening deliver

the for their we cascading turn, had were delayed they there's receipts scheduled. effect. plans When So that a cash in that, on us, delayed repayment

shortfall reaffirm million. million on of again of today, received positive a the customers all up year, half we have affected back funding, which that $XX think supplemental we of their to as the in why believe we note, $XX to the I is and make expect those

to monthly higher existing not biweekly, we that customers we're of picture, notes promissory the ideally half if going a what plans recovering first goal the think repayment payment now the to be and like quarters frequency some Sean, second from year collect utilize decision-making focus disciplined continues increasing half of certainly on both -- of I continue I have in are shortfalls. proactively from next our this XXXX, and and certainly growth, period higher look frequency ideally, going that in to referenced, to of just heading into frequency then ahead, the bill year think, over and we And we in for monies to prior new our XX% schedule. We're weekly, continue weekly, and big payment on our the but business. we to I especially the into to a remaining as of

be to excited very And of target. million related. to was just cash again, QX So $XX in that reiterate delays, the to able it terms truly flow $XX timing million

you And is where Are any coming mostly the to, are cross-sell that you're fully managers enough that growth to training at QX the a to Great. more hiring with staffed the then and still Okay. in do some then that do drive this you or need fill of And that? dining you QX? from is growth you training point revenue guiding guiding that? contributing the manager Or standpoint? education meet to and you're to to need facilities from

portion question is Matt. Yes. This last you're the would of exactly address Sean, And first. I right. your

management foremost. looking is specific managers footprint. development possible in capacity the to the and of growth and is which our None requisite on, spot in intuition the Sean, that in of expand we're management number sense without having first Your geography is any

of cents from dining core complexion driven the all in near driving secondary of dollars services largely the the and to market. it to sort within committed perspective. new by remain be to cross-sell be And But of opportunities. As education term, would I above do we then a opportunities of growth would environmental will say the

further the obviously, contracting to coming signed, along of new amount both then QX. in anticipated more and obviously, prospect on range amount comfortable, We've are meaningful midst and the started, QX the the we're of onboarded stage. not in QX adds, yet are -- that and will modest already So for simply quarters, of a business in are some discussions in others the some signed started which and but are offering

far previously, of question this pipeline into mark. education. is services, about be growth, new improved a having would to it the quarter, bit environmental as dining But talked your business the drivers while always new of back visibility line timing top that likely question, as we've business, opportunities So a Sean, then and of in cross-sell,

Our next from question Sutherland Benchmark. from comes Bill

all I assume assuming the it's guys? are I LaVie you facilities continuing is -- guidance that guess, the with

note, we I ultimately services, the mentioned made really impact it and any announcement think are know obviously, to and forward, revenues, partnership think have this positions quarterly continue we But we that Bill. the regarding mentioned, you -- to impact or we -- makes correct. and restructuring them action on that expect And release, as we they it's That's that, I that the collections. that that I previous our previously continuing important to would do moving results. absolutely do on expect expect go-forward but know took in better stronger really earnings provide services not we

Florida of Got has And picture? happening Florida, is think the in rates could been your least coming what's update pretty slow Maybe couple that with. that key some of us rate and And I states and Medicaid a in other on you something it. soon. know color the I that terms at give with heavily Medicaid weighted ones maybe you're to they're

I positive think stabilizing, Yes. out X.X%. environment. proposed some the had from process, recent at quarter. commented just level, with that overall talked if we been I the through federal rule. final know not news We will come CMS' industry there's with last with an bit perspective, That Certainly, about process the talked positive on the the provider a engagement about and get the community they'll reimbursement

coming the weeks, We the of not the by end that in expect to see summer. if

mentioned the think, a Medicare another due the of payment rule, from received that's their by increase Kentucky, the of community. the in reimbursement before, to positive going type Florida, they Pennsylvania been these provider I there's been there. And upside And Medicaid be see the some And I'd terms rate. in for is be That's to And notable continues Texas and ongoing to level and federal we're you Carolina, then improved whether double-digit Illinois, state, well we've to that's, of talked focus So going there's potential to industry XX% efforts really it shift -- and the state about north level. a on there. community's stabilization. provider beyond of going some had towards going impact nearly that in others work North are has some then reimbursement news. have clear say

track we and information So basis, a this Bill. on trend consistent

our into with paint on relationship. assessments decision we a or or not does determines making it it picture that not but with on given we're So like feed to would continue work whether work to we when that provider, a that holistic a

at to reimbursement continue overall closely, but trends level. we monitor favorable the that So

comes Wittmann next Baird. Andrew question from from Our

little I things just little guys was thought would out million is of customers on bit just ask is detail just on that $X.X of and of to here that couple aged if broad-based larger the customer the if lots a that. a in up I kind one this or that more of you called added I quarter. receivables wondering or first

reflective that write-downs those would other than helpful. on of going be just that? if as continue you I comment customers think or some to context on existing something if if also, are And could those are

that we be and able was it relates I the information disclosure valuable provide. Yes. age as guess to portion, thought to to Andy, specifically,

is that's the rate calculated before, CECL off it's formula sheet about based receivable, and loss and aged talked a of on historic using accounts we date. then balance notes As cut as

why CMS receipts suggesting So the related. is customers our then, getting our out in essentially, flow turn, in our delays further the the the really primary some into because of advanced The were what pushed second plans to the I that really of year. in is repayment and reasons receiving below half we plain related and highlighted payment English timing cash targets, it's reason

they As had that those aged to over -- them. rolled assigned a loss into rate accounts they further, just higher bucket a

becomes So context total will this temporary. it's in we see the it quarter. believe some quarters actually thought from forward, quarter, noncash. We where it's income likely collections it's that in and aside reason providing we And bucket moving our a cash where we for Certainly, as see CECL aged accelerate. could reverses normalizes,

we we So it's share. what to think it's -- important way whether cuts, of it regardless think

but is guess, provide I didn't was was here not this you I -- the That's metrics quarters? guys that with related you definitional was kind SEC? related, few is EPS just we've EBITDA, a impetus, just in helpful adjusted CECL. been Ted. wondering, have these I approach on adjusted not last changes Yes. the a super of for guidance quarter. that of adjusted adjusting that, conversation Do context. your And appreciate just that for the Or on change result the that in guess, using philosophical I what change? the a to

Yes. question, transparency on feedback from open a to Andy. We're We're key and and stakeholders disclosure. -- it's maximize always how great to

We information. the to how have their least business of appropriately related the and or in excluded to most the of prior of even non-GAAP and actuarial not, from best periods perspectives we're the shareholders have on and type type adjustments concluded industry engagement with at we're context in in. ultimately We they're debt that with HCSG to self-insurance, that And are whether that as the bad we present some some regarding staff even about well like did recent non-GAAP items had engagement reporting.

argue, continue enhanced insurance to disclosure going may expense and of stakeholder making bad like -- said, want that impact in existing debt even would for similar, adjustments shareholder and on perspective that to I provide reiterate, more did would investor items we're providing be decisions. to or comparability So all I their and

So was the out more to information, again, it thought it did. way the the think better, valuable break we we and we

then for That's me. helpful. last question And Okay.

achievability. a Just there. on just some the the for if wanted half about that second SG&A what you could comments know unchanged, do the Matt, talked range X.X% have Ted, and think outlook that's bit you I don't be leverage target view that, the have revenue I as about always SG&A you here. talk that key still leverage you that with key time. But to thing I to the assume been has to Obviously, a target think your guys is when ramping, growth little is that realistic?

advance made expand previously, operations. ongoing engagement to to of we've at in a even necessarily, But harder there's top and leverage company that some further footprint. technology the us exactly to sort or we your date or be of in talked our you're logic in been technology line facilities sort that employee a in specify would the investments that continued Certainly, that that we've and leveraging top then business, and right make investments Yes, in experience We've see onboarding about and the to up onboard appropriate this as positioning to to investments, Andy, grow branding exists new range trigger our and lead ready of line. the as optimize enhance level. new and for investments marketing

in line growth. to above us certainly the led leverage does top the of all So the levels elevated exist those has and

guess see But to apologies for which X.X% say to plainest the targeted be X.X% it to either to we'll line a getting anticipate of threshold that back at range. able confidence sort do being timing growth, not our offer on with to I top any or that pivot. way would that reiterate So we specifics

side, some we've in service said, between of our walls and to that of only propose in brand measuring absolutely as relative leveraging even in though employee underperforming on we A point X percentage able the Andy, in of add committing we're shortest line and of, experience, retention that engagement being positioning, the of just range like like. SG&A, the I without would employee both Again, color a and metric I Matt not do top and believe, of dollars. and not we're line terms would and to absolute investments, the we there's made to terms side. line to services little if and as But overperforming to of investments that on the XX% we're we're to X.X% wise believe garnering. and stubbornness investments tech the we're the financial areas some range, satisfaction, straight the efficiencies bottom X.X% are we've made, but even we off areas draw SG&A a B within a the also like marketing data. But in between gathering those the continue, point is paying customer distance communities and the are cost

for I you wanted So just for the benefit and to the call. that highlight on that's of everyone

Our UBS. next A.J. Rice question from from comes

a just couple questions of Maybe here.

to back comment. go cash to First, the flow

to all So the to is favorable How some really need payroll which up then $XX ended into $XX from to to us or the I receivables to year-end unfavorable second to make much how much you a wonder, quarter. tied expect perspective? million target to the million, of half give still way operations, a Change-related we as that move is come in the how is back and year. you where that quarter we to quantify just of get swing got the and due much there third is has payroll

Yes.

baked -- you QX the your our is I gain could years of different even in level, not typically its collections. Specifically, many QX at a perspective, is We throughout you second weakest And many periods. A.J. seasonality. and -- our of sense -- overly just in strength then that can part a year. cash strongest targeting business seasonal, cash back though the go typically many seasonality is you was quarter the our in from second we question, respects, to a collections had degree in quarter, base from of target say, will

of didn't million So its was a line. What to We happen Healthcare delays. that as own Change though expecting the impact good it Again, of the carry standing that back half QX, just the QX. is A of the to portion Healthcare-related recapture year. we Change in to anticipated over news $XX the portion being million $XX those, of those delays. carryover expect on in of total was we're estimated into

I the are which you as year. highlighted, just a what those million in as well, operations expect the strong to quarter would first million through July why, $XX through the positive the adjusted we So cash half we're offset off to and of year, trends add $XX is very used to the continue through of start would flow and half end in year, back is implicitly of the the suggesting of the cash which in

just as then things fully your stand Okay. capture And hourly out? able and seeing? wage us anything where as are respect Can your worth on that well to give to And with food increases from you you underlying calling that? the is clients update an you are are inflation clients there you experiencing that on

seeing to or unemployment has continue which in Healthcare Group. to rate growth data XXXX. trends. climbed X.X%, And seeing the to we're pre-pandemic A.J., more that for to have and decline. its national November since job appears return Yes. postings the highest the less of rate is Wage Services We're

to as our wage retain at growth. employee Group Services a to levels and hire like we feel So darn a a perspective, stabilization bag, a employees. to definitely ability it relates close pretty pre-pandemic job from we're certainly, again, retention, there's seeing stability. do postings mixed operating directionally, and Healthcare and And in but slowdown And

but this XXX,XXX about bodes jobs is Ted would levels. of and all still pre-pandemic relative that the note, So mentioned short to his industry earlier in comments, I well.

but at seeing peak. we're improvement, $X.XX its million about definitely So from was what loss

there's improvement lag the of data. availability there. specifically, wage of More inflation, a directional a the bit in on those So

wage QX from that specifically inflation, in at we around residential X.X%, was up saw in that X.X% care looking QX. was we're nursing So and facilities and

such able can to contracts be and absolutely those our close capture recalibrated inflation we've capture that to wage again, inflation. that of to we any have agreements real-time, something Now all wage bolstered and but that

for us is that certainly So favorable forward. going

On a all for CPI in home, compared X.X% the for the was us, at and more is items Food it was QX. X.X%, look down meaningful side, to at you measure which for by that which food home actually sequentially, X.X% deflation. then X.X% the inflation compares in in offset of deflation the aided X.X% up by again at QX. to And in showing April, X.X% June. month food That was quarter,

to of just from of a ultimately would was And pass-through seen quarter was So quarter what this customers you, in have through remind XXXX. passed we quarter. fourth as in modest in quarter through deflation That the X.X% quarter then for that of in that reduction this this year. way a saw passed will the we ultimately by fourth be the second of clients XXXX modest

focus on half of Okay. the That's great. lot the Maybe one last a year. of back question. Obviously,

it achieve 'XX term, point? the your thinking sustainable of on at thoughts, early to and just this you're even something targets, to be? Do might you long tell? about growth sort are you thoughts what early able any is too planning for If have Or

nearly yet in position, in to a levels guess at I able to the next when be XXXX to we'd more be But we'll A.J., out speak think to like think, X into going highest specifically year, we I industry, that. Matt and the the recovery. pre-pandemic like X you a the I of levels, have especially but trends heels occupancy, years, which the -- finish at we're even employee have about look XXX,XXX is high even within to about the positive of we'd you still the talking continued industry. industry deficit on seeing more see the over

occupancy You perspective below you the or pre-pandemic plus certain a is urban the recovery key communities unevenness recovery, because the levels pre-pandemic facilities, an the to a even does group really have need lack the because of wonder from subgroup C which are or is you levels available there environments reason there of occupancy And demand -- above winners, namely from how and still labor. then meaning select a of at a but A having equal that are The perspective. B have is rural the an and still. from perspective, demographic

to see we cadence. to again, expansion, more something conviction a like type we'd line which or the see mid-single-digits certainly where able bit year-to-year single like should if to mid- X But be more So see in being specifically greater deliver years, able really top that. high touching and on -- at which that out to a to a highest even on than digit, type we're over quarters level, have X not the we high really to some next years the

-- but data we where we information off and today. So range mid-single-digit based confident feel certainly is have the the

Our from comes Ryan next William Blair. question from Daniels

This Senft for on Ryan is Daniels. Jack

give the First, can in well. I probably client and us that was retention probably like as you what know client exits bankruptcy some there looked overshadowing quarter? was into the any insight

curious like. kind look adds just So of and what retention even new

the been mentioned north that retention, exits. our did I which was did Jack, of new XX%. is level thing earlier of We onboard modest customer a we modest see offset And very historically amount targeted fortunate Yes, that had business. by of that, really

if existing to a that though, retention. have of way we've we'd line we Glad did a top didn't growth our that So growth, and up, had by to retaining respect that revenue remiss client really top circling that remind back business. you is with line the be because conversations of strong bring quarter everybody component we

of on term, up any in can industry mentioned here in Ted portfolio. ongoing but worth and always stages just don't ownership our that foresee changes in of reiterating facility alter or operation that near we any a So the that recovery business the piece with significant that or view final exits

in we concerns, our and/or about to to do those but believe have a best half that. if do nimble. back So client certainly, And group talked whom And we in we about, confidence deliver remain business. year overall, to we it's be we But that that. need in ultimately the exit interest to net-net, our near have term growth only that to long in not term of we then beyond have retain targets the do ability on this able

kind you're selling quarter, quick education of Last at sort space. of follow-up, a you And end in that Understood. the the just too. tail mentioned of season as the

the of So maybe selling visibility in can opportunities into shaped growth takes season puts possible here, and even the road? up down you about kind space the talk how just the and

share proposals they yielded share a the and as revenue. as be down We're team "selling presented, they our would calendar felt pinned we of really defined in X% company to feel be very total the not But you still that to selling total remind I But receive is the explicitly they proposals services month the speaking, strongly the about revenue specifics or that how that requests would fruit to for portion defining any wouldn't I want directionally, specifically than Yes. as season. campus season". that yet. through position education of positive. I directionally less that did generally for business pulled

back through strong not yet business to it enough about any we speak those the at get do ramping we to determine portfolio to specificity. opportunities. like specific the look be directionally, results fall results. the for execution pulling that sense So with sharing of point of level season in meaningful for into of continuing at feel some what had business, and kind as compelled and And education in But we'll we to us us more it feel for operational be into makes

turn back Ted Wahl for would We have the call over closing no like to remarks. further to questions. I

the ever. underlying Great, are company. the multi-decade Julianne. company's ahead long-term and opportunities proposition, demographic our shareholder position. deliver very an business industry a time model the favorably few fundamentals for have market-leading capitalize value tailwind, are as the the Okay. the durability value. navigated to solidified The further incredibly It's The challenges years we positioned exciting past beginning of of we our meaningful with at And strong on as and

So Julianne on behalf the Matt everyone us all for call today, hosting you of to at and thank thank and to HCSG, joining. I wanted for of

call. participation. This concludes today's conference for Thank your you

You may disconnect. now