Balchem (BCPC) 29 Apr 222022 Q1 Earnings call transcript

Greetings, and welcome to the Balchem Corporation First Quarter 2022 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Martin Bengtsson, Chief Financial Officer of Balchem. you. Thank

begin. may You

and the everyone. and first fourth Melissa, clarity, not just this quarter. is quarter good you, And morning, for the Thank conference call

to our you, with the for me this our Chief March name Harris, call for Financial thank My ending results Chairman, joining is XXXX. President. Martin So this Balchem Ted everyone quarter morning CEO call is discuss XX, Corporation Officer; the of hosting conference and Bengtsson, and

reflected and the statement. Following at of contain the or could counsel, statements various auditors and in future correct that and involve to including results our statements, Balchem’s forward-looking advice I cause prove Form forward-looking XX-K. belief no and time our or forward-looking risks We events like expectations can expectation This SEC, would reflect will factors uncertainties. contain differ identified in risks give expectations, our this does materially Balchem’s which to factors concerning from the assurance likely that read will release

are in over I call by now entirety our will qualified their this the statement. Ted CEO cautionary and turn Harris Chairman, President. to statements Forward-looking

morning, Good morning, reported with to strong our and conference we results earnings call. strong first This quarter growth. and welcome very revenue Martin. Thanks,

Our quarter. were million adjusted $XX.X revenues our the were operations year of $XXX.X earnings million, versus from up And XX.X%. prior up XX.X%

for of million quarter from increase quarter on share XX.X% of was is were top the of strong first demand XX.X%. a increase an and to particularly $XX.X million earnings have geopolitical resulted highlights per of basis, remains income challenges the macroeconomic first million basis. GAAP operations $X.XX a challenges, $X.XX $XX.X been net On Overall, share through inflationary The priority. chain that and net Cash and a per $X resilience performance XXXX markets earnings quarter our of first servicing XXXX. an an for the products Our these non-GAAP with business start or our in and the given model, facing. demand strength supply great our of this adjusted

is Martin supply financial I Before to and talking some extraordinary back the challenges inflationary we our been spend today would passing about additional the within cover by truly challenges. taking currently and call that the working chain some of are company results unprecedented. time facing The address the have like segment, the geopolitical and actions to to to macroeconomic we environment detailed is

and of first subsequently of of last of our XXXX, $XX in on of experienced chain from material input inflationary We year, costs. times are form not million and shortages, significant inflationary all headwinds. the In year-over-year we pressures the inflation most on fourth approximately of $X the significant parts and experiencing of supply quarter equipment raw lead disruptions course, quarter another delays, long logistics if million

few While continue it volatility, given moving the forward, through all will next of least to is headwinds at market very obviously difficult current expect transpire inflationary to we quarters. what the predict

a versus XXXX to of pleased in increased were we to sequentially respond accordingly. in pricing be able costs. QX dynamic needed flexibility time. in and to actions changes We actions quarterly costs to our pricing have respond have realized flexibility actions majority cases areas, recapture that or and to us higher will have we from to based moved input far ultimately we are pricing thus pleased add taking on QX our is over believe of and pricing we pricing the many even with have these XXXX we for margin actions. environment of weekly monthly increased annual to taken This the improvement And In some

we material to We have cost that of result date. increases as a see the to destruction demand yet passed have on

raising turn in are Our customers prices.

our working these to closely. challenges so to we demand are and combat closely indicators We while customers watching continue with do inflationary will together

response offset a pressures address While chain our challenges. lever are the we to throughout critical chain the broader price also facing, inflationary supply supply to is working we hard are

our focused in company primarily American sales is from North the with coming America. our with a North sourced North with overwhelming those near sold of As America raw products you in approximately in products know, of majority North XX% America company revenues XX% materials coming from manufactured American North

Qualifying to providers done materials, businesses to has suppliers certain ensure business materials capacity continue and third-party manage partnering for these sources to plant like alternate to be will have logistics key inventories to adding add for to service raw new with chain While of expand helpful nutrition we finished working build to supply over dedicated redundancy. as where supply production we buffer. and but aspect needed possible, to time, routes become encapsulation we global also chain goods aspire of capacity, this food more been actively our international both are When build both and our we and raw challenges. and

company’s our again, pleased is performance We back environment the certainly a these to week to last I from priority. challenging outlook let date, And in sustainability and to making our and the strategies products is a hand are we of with remains know you healthier over into geopolitical social this I to to for servicing would macroeconomic company business and the challenges Balchem’s disruption through governance a the vision operating and and the integrated the this challenges performance. we place. remain world demand critical released that supply and response our our these cautious are report, commitment Martin, inflationary and sustainability XXXX environment. Earth call demand coming Day, the about of for prudently to quarters our environmental, captures pressure fully chain like on managing But initiatives top are it strong Once before which our a perspective. our

diverse in which valued, vision. diversity, steps to belonging welcomed, remain to feels advancing meaningful toward and taken fostering and culture inclusion Balchem and our appreciated at We stakeholders external inclusive and share everyone while inspiring have a our committed

the And on go read our encourage now a detailed report back perspective the balchem.com customers, company’s segments. and promise you which provide progress to and to the shareholders, that, will with the to on XXXX employees, work our broader within sustainability water to would report Balchem on strategies we information our the of to Martin for both communities includes reduction usage go I are with continuing each to to turn great over emissions our demonstrates of get and we operate through XX%. goals Our call all initiatives, for results sustainability and by doing. I

strong Thank environment. overall you, We a results delivered challenging Ted. in financial

growth recapture Our and all increased first Health Health, XX.X% continue this We and average three as & Specialty the prior to Nutrition increased Human The Nutrition higher quarter year volumes prices, segments, Products. growth net sales driven of input by both $XXX.X quarter. double-digit selling in & rising we million sales was comparable delivered Animal were prices in costs higher by environment. than inflationary

basis continues first sales, or be to consolidated versus were prior dollars the quarter sequentially margin XXXX. Our Gross quarter compared XXX to fourth in and first significant. the quarter Input compared XX.X% million gross XX.X% was points, million percent year. of margin XX points of XXXX XX.X% basis up down of of cost up inflation the to $XX.X $XX.X

successful far in higher X.X. quarter XXXX, geopolitical an million XX.X% detailed principally QX year, and $XX.X inflationary to related first for help acceleration effective part The first XXXX above was prior services. slowing the pressures have earnings rates was $XX.X operating morning, expense effective first a earnings due compensation increase of XX.X% XXXX of the company’s income a XXXX $XX.X in international the compared Interest increased was were net as $XX.X first compared pressures, increase primarily reduction foreign our operations seen XXXX. million, were operations prior were continues an rising our so million, environment. dilutive XX.X% a quarter non-GAAP due $XX.X We’ve rate from been to started quarter from from million increase of $X.X credits have million inflationary million to adjusted $X.X quarter While the of last XX.X% of net debt were year rates. debt as in compared the of closed year. million up part on the The prior an signs and in in Record a this at higher and the in but on XXXX. in at the for the EBITDA see tax $XX.X fairly later the prior XXXX ratio up the of we the to input adjusted quarter income quarter On selling year. the Consolidated million tax basis overall quarter. earnings average to since to margins. the quarter certain the leverage first for net compared it GAAP The of tax to for release $XX.X XX.X% of and basis, the XX.X% respectively. we costs with or was to outside was to costs first of of Do to of fourth prices with Consolidated certain and in tax subject year. least million in raising increase impact of expenses offset an further quarter

the were into translated the net sales, On decrease from flows with up diluted $X.XX quarter XXXX, of share year’s million suppliers. per $XX.X to driven income cash from prior for for quarter. capital basis, diluted was million comparable our of with flows increased current restocking year comparable inventory were primarily earnings net period. and per net first share, earnings last operations or the $X.XX by operations an changes in Cash or quarterly working prior in year, adjusted payments XX.X% The This and quarter of timing $X.XX XX.X% increase $X of of quarter. a compared adjusted year million the from $XX.X compared in an first

strong less and a to full timing year these We expect be flows impacts impactful overall. expect we on continue to basis, to generate cash

quarter, and at quarterly segment generated the as strong it and of higher XX.X% of perspective, for selling sales food both an higher was the look markets within of increase from sales growth Health Human prior increase our volumes Nutrition driven primarily The by we sales higher $XXX.X minerals, result record beverage year. segment of prices. from As and a chelated million, a and

and $XX.X delivered aforementioned within to million, operating $X.X an higher of earnings of quarterly expenses. Our the from input primarily record Health compared prior distribution along to by with sales X.X% increased higher increase year, partially offset costs million or Human related costs and manufacturing due costs operations also Nutrition segment compensation the

for this of assets associated for an of Excluding the million. the acquired to year earnings $XX.X expense operations million, effect segment compared intangible X% non-cash prior amortization of from of $X Adjusted increase quarter. with

foreign quarter, Nutrition prior Animal record increase compared costs both primarily sales Our costs of $XX.X was generated by an due XX.X% companion ruminant the AminoShure an and million, higher in manufacturing the input choline, growth selling XM reassure due increase within volumes, and in offerings. X.X%. sales $XX.X higher of product, species sales primarily record XXX.X% product across Health higher year. sales negatively $X.X The and animal changes prices of operating distribution increased impact quarterly product deliver markets, methionine increase to earnings both sales expenses. Health the higher currency driven our and for of in and Nutrition to inflation choline partially result by encapsulated prior exchange These and year average of rates grade compensation to costs million, higher of by the monogastric of related offset unfavorable market the segment the or higher an offset or and from partially most primarily related to million impacting Animal from offerings were or by aforementioned feed operations encapsulated

with increase were the XXX.X% Excluding prior an from of year segment of non-cash $X.X associated $XX.X effect the for acquired assets of to quarter. million, compared of operations amortization this expenses million, earnings intangible adjusted

plant of an sales primarily was growth to X.X%. increase XX% higher $X.X nutrition segment million, by selling currency the driven plant input business by costs sales, to in within offset higher changes both volume The by in increases were the quarter. quarterly had in due Products compensation our to growth, the rates, an distribution The compared costs to impact increase with foreign quarter the and Specialty device partially of costs impacting expenses. prior prior higher and higher particularly sales year. related prices. Specialty was both year nutrition of $XX.X sales related and the million, partially of from increase X% primarily Our increase manufacturing medical delivered offset These market, Products first operating earnings and operations segment to by products sterilization business an exchange compared negatively higher The due of unfavorable

of non-cash that authorization intangible effect the expenses Excluding with million. of assets associated $X.X of

for from quarter operations increase of an earnings this segment adjusted $X.X First X%. were million,

Now I’m the over some turn closing Ted call going to remarks. to back for

Thanks, Martin.

financial start time XXXX. with not quarter record and also year’s the to business results revenue versus but prior are three reported in all sequentially delivered this a We our pleased morning all strong Balchem\s quarter, revenues extremely the XXXX. segments, We with growth of only versus earlier fourth

the through volatile cost the chains efficiently. the continue our earnings very extraordinary within, continue resilience extremely make disruptions difficult growth, and That markets operate global it ability of being recover effectively strong increases said, to our the to delivered environment and showing also be despite business We operating inflationary are pricing. to to we to supply and

who do job for do creative employees our like to for to like call all for and Martin I now the continue customers, stakeholders. our key will Our the incredible this to take to work Martin. thank an questions. to never finding back over seen the hand our solutions our opportunity would I would employees again, challenges up call in exemplary open of once they company, to before.

Ted. conference of At formal questions. point, now conference. This we the Thank for the you, concludes open portion up will the call this

Labick CJS Securities. proceed Bob Please comes Thank line question. from of Instructions] the Our with your first with you. question [Operator

morning. the for question. taking Good Thanks

Hey, Bob.

Hi.

just ton So operating areas obviously well. very the a focus through volatility what maybe your a the biggest outlined the this shift blocking it control that XXXX? well that making and on macro under and reworking look eyes tackling easy. you’re and on for What of business not and your your wanted are and the get of set you kind little just Congratulations I see ask that for to are goals internal you’re do have focused on like through volatility. when you biggest to

Bob, managing look through about has there I So easy. making that it supply isn’t it you all how and challenges the pretty just it and inflationary comments I these want how to feel the comments clear challenges, out the and chain easy. around make responded for really with thank specifically company good but It’s do tough we’re it.

strategic things can the by I large initiatives. think control growth that our and that are we

we’re doing of And so choline prolific that nutrients happen, segment bit set largely and that achieving Those actions programs pandemic. in all we’ve officially drive those think control. say don’t on there. that types our around will again, And our us, And talked I we but building our a it’s minerals we the marketing now that, are continue the eyes in science making those driving and H&H, the back can And are pandemic and milestones. when benefits XXXX, of is we’re I in business the awareness think that early about the our past. ultimately took back building in we about about of within the that, studies behind believe of the growth pause investing is and business from early we that a in scientific those our

to our we And continue within so control that’s drive those action. and

are nutrition human health say, or relative would even those control. track cure our back delivery those R&D investments. kinds it’s nutrition, much The of or air where plant I to of pipeline mark animal building of whether within all kind in on on products, Focusing nutrition system. And very

that ultimately, the work of launch to manufacturing preparedness our hopefully We product. for and continue on

feel it’s hard still nutrition within that. good AminoShure I that’s think drive and not the animal protected I continuation geographic there’s something is If control. new in plant significant clearly we’ve some or penetration very products can U.S. that to drive product digit our with driving health, for control think only about population, of encapsulated control the products strong, market room flagship within ReaShure QX about XM and choline double penetration European us on. we’re been that then nutrition, our our but to in a cal for to product, trying again, focus our and business So opportunity a continue and penetration And similar, of in there, the And adoption growth we increased there the largely working group expansion is a years. of broader of further of our was and crops of And our launching all driving that. driving

and initiatives within as for to point, that’s do macroeconomic And pretty are all about available largely some we are our completely that. us, time And feel good of that so a talked really like believe there? you company by control. where we’ve challenges do you we still out and a bring resources growth doing not up And job the the distracted much good how quite a of focus really XXX% that that our geopolitical of still get I we’re

to dealing also I’ll a all press We’re QX we our face results but our good light with progress say the from about perspective, it perspective. release, from challenges a obviously having resources dedicate challenges. as financial But the now, on that I significant initiatives particularly we strategic feel said of in and to those in really

company’s in alone So very, answer winded can those areas Little there. facing that, your certainly and not bit we everything a do relevant for continue the progress but to question, make very we’re we of long control. that

for no answering, thank you all Yes, super of that.

then allocation. given I and the tough sheet, I for the quarter, been and us of It’s the in know the give of valuations maybe acquisitions. late market like that. – repurchase look of things volatility acceleration you’ve little talk always capital then shifting balance appreciated. maybe And noticed a that So the about to

kind on given the balance of expectations update sheet. capital for of an maybe the allocation So strength

changed equity focusing the organic seen in M&A us, flat you’ve repurchases of in paying this year fundamentally. anti-dilutive accelerated our necessarily to when to earlier committing on on years, of try This share been Absolutely, of comment counts. in the fundamentally to growth a whether purposes repurchase I our dilutive programs we continuing on little we’re you’ve but sort really share would Yes. our just so paying the strategy we’ve And Bob. as not nothing first, our time. And that the perspective, in it keep any share your is primarily of kind over off grow is In as just And really programs case, programs and and that happened count relatively than still out larger strategy. continues as our The From R&D seen of impacts shares. dividend to to it’s Martin. allocation said repurchases an bit in some so that has active. we’ve our past, very down decade we’ve over terms forth. be debt one and the of on capital other that there. last to for one. say, other strategy to And that right, offset it’s share, to a that’s what of venturing

also that then moment the nothing we evaluating that. years, just predict price processes very and in close regret last over We later. the to you’re as to active very but don’t want continue evaluation and It’s have hard been active And you very participating fact risks the participating we as you’re that not. keep disciplined that continue to well. keep mistakes noticed purchase any targets. you it so in to And identifying and make have that do And right has lot at whether been the of any that discipline. sure targets, of transactions a make two you we your maintain you to going We you’ve despite closed on is or

you Okay. so Super. Thank much.

Bob. Thanks,

you. Thank

the with proceed line Wainwright. Ram Selvaraju of next H.C. Please Our comes with your from question. question

solid congrats questions on as Thanks conditions under very for much and taking always. my performance challenging

you that tipping to to price wondering soon. elasticity anytime those Firstly, the seeing pricing? I temporal fact and talk tipping there if pressures some both might see and point the about lie perspective a a of increases where and environment to don’t point think was abate the with current little given might so, where it with regard you in actual kind to of a Is from respect could bit expect inflationary if you appear percentage likely demand

prepared have you and we we comments, we’ve clear, we’ll But a have it Yes. Obviously, pressures a that’s obviously given we destruction. yet. we given see say absolutely maybe think of what an in furthering of some cognizant is And seen we’re see The demand would – that and the materiality seen destruction point, getting be I case, not but inflationary nutrition. you just maybe question that where very facing heard area to it me of area to-date. seen the again, be might feel the animal pressures, of relevant any not demand within again, and first need that that of be a continuation inflationary our in signs ruminant business to to some

today are dairy nutrients, much relative investment, So very the true essential industry our on they to where investment holds as but designated clear the of at taken discretion out on can not the return of proposition value a dairy have necessarily farmer. that return products be

would if dairy continue. one the see that heavily so farmers And demand think get prices would area come and that margins be squeezed We of pressures that inflationary dairy we down a destruction. overall some and

a think proposition positivity is from the real. value I perspective there,

we so but that the have temporary first would feel destruction, about. we probably And is that demand do concern area that be that

of an benefit our little different And back business, because products, in the of portfolio choline, is we’ve deterioration more quite margin it’s onion designated about watching a bit seen product margins the so rest where And we cautious we’ve that. business, as essential primary peel nutrient. of our if that And on we’re than the animal carefully. our that nutrition

out some or though as that would don’t some our formulations, large we essential companion is less Do prices. may start is nutrient point it raising at and those animal and customers we food there today because choline pet taken are feel where an food time, consumers and spaces pet of buying by be So think certainly It’s hard things or could overall relatively there. judge portfolio. possibly happen like what a very that primary products. you again transition our modest we’re very, the lower would that business, not concern get But to ruminant to treats of cost our part again, at really or But point is around is which or there.

But We but minerals have demand in supplements there. our closely that tell respond does not fewer again, with could not get seen point difficult said to business, I prepared in of seeing any we’re again, some point, customers. at signs consumer destruction what by at it’s our possibly working And the we as the and really start nutrients we’re that remarks, to And happen. taking that.

to We’re closely. watch signs yet. watching market we things. indicators of to of we’re not need it there But see early And types those

moving choline the thinking within & foods you and medical areas industrial quick Human look demand, Two ingredients if years signal interest demand about the business. such That’s higher then Health, reemerging of rates areas geopolitical use? boosting possibility increased very I return is that was And margin to you’re in oil also as potential compliment your gone potentially fracking environment for wondering into for existing by we Nutrition interest this Do of production. overall one other of at the when might helpful. to down think me, road, domestic and

our QX gas quarter oil me question the tackle of first, So and so volume about, QX current first XX%. this year, all, oil of talking the and that we’re let gas – was up in

that are in business. growth So we seeing

fundamentally contribution very we business say seeing quite base logical of increased growth the things see from of We seeing from fracking important rig possible business Now fluids. that and was it low fundamental at methodically, are that But continuing is still never see of could the And quickly that’s that year. once there, we business small. we a chlorides, throughout certain and that and an changes, to in it increased changed our grow do We But are we overall already we been that that, to where because that bit it’s the but of there believe double that that will still XXXX. the $XXX will tailwind growth, in the count peak. based its the is need what hundred on a business, think We choline it in likely to that grow a think have business that, that does that, that’s that is that overall to continue million today? that it that will have bring for a count some do fracking have was activity again but rig in benefit that choline. believe process will business less there’s recycling a there’s important fraction back in fluids

to today, market with business that increased to some same this pretty the in but it’s we’re think tailwind continue from don’t country. see going albeit nice really we small So fracking

And with is Ram, strategic had Health, as Nutrition a there the and time maybe you around that’s our in some have overlapping and weeks nutrition part business, have are few And opportunities areas. the applications. very talking joining And some & gas. well. spent interesting of answer So topic, comment ago we opportunity food very session Board we this just plan a the I Human of, kind then this medical and and to our oil interesting you foods CureMark but think certainly pharmaceutical of have have we really and you some business, three think can emerging other do, an is in if and that the very higher about circles margin you

food fortified opportunities. a beverage nutrition perspective have the opportunities, those perspective have we a take where you food So do fortified interesting of we from technology space nutritional can where and both advantage food really

to foods. that – there between seeing unique more opportunities. that your same the we area, if absorption nice investment in in thought will will opportunity is diagnostic head we of addressable some We focus also is on. an years being to errors that growth can there’s overlap investment or nutrition gains toward that we that couple see go supplement we certain We there’s do but that ultimately and move we think go that, is really to the and medical their what and that, you floor people personalized which that nutrients. identifying metabolism It’s trends nutrition have feel part are you after have believe more kind take lead us that That there that to medical opportunity that as growing to individualized be of on S&P, would not really we there, really an make that pharmaceutical advantage ground circle, yet, essentially around that is of And company it just and highlight. a ago significant have like focused I space also that capabilities that for a that, an DNA And regimen. market which and food and the did important impact be DNA and that after, a on market of a like

we’re business got don’t there’s opportunity. focused today, there an lot have but on we’ve yes, So capabilities we do We it. a of and feel like whole

regarding for remainder for I lastly, what if guidance you. that Martin, And should the some is and tax effective could expectations if year. just we give this you be of was rate us wondering around just Thank then XX.X% expecting rate,

Yes.

as bad for higher, but good well. it’s a use to the little It’ll maybe a year estimate. below, a that’s a bit little think it estimate a not I bit full

Thank you.

Ram. Thanks,

you. Thank

Our Ramgopal next from with Please question proceed your with question. Sidoti. comes Mitra

for thanks Hi, Yes. and taking good questions. morning, the

success and front the you able that. I to eat with environment flexibility of you’ve of kind if have you’ve price the nice to had this you on on of congrats worse, just more year progresses, things job implementing combat done curious in just terms or get have increases. was do probably the First, being as some that if

portfolio a norm, monthly a our ever shift. normal And not your have from significant annual but to pricing we’ve part of in they gone as to is huge weekly increases, we maybe flexibility about, So which at from operating comments. restructured been. thanks, how pricing, kind the pricing situation Yes, feel not a a Mitra moved that, we a which talked a in of this even situation, need long we for way we do price anywhere just we’ve that provide to some cases time, of point increases contractual we was like even it’s us

So we able quarterly. to feel be respond in is about flexibility the And I maybe some really to good most that monthly to now weekly we cases really longest in have cases. have the

up costs the inflationary perspective increased So well-positioned what what as And forward really we’re a is I start that’s as of a recover of that we’re kind the think catch rate diminishes slowing we needed. will and from need to pressures cost to. obviously pricing to of the looking

you just Products saw that’s plant what the a then no, we Specialty obviously business nutrition based segment, great. in seemed And versus had on this nice I Yes, the uptick. quarter, XQ know highlighted had on like it’s

be might driving what curious that? just So

introducing we has good X.X it years, been which say, the some our some want really combination well and really last I as to agronomists of really, annually, have expanding expertise. market, a crops a been and number we’ve we we’ve about, XX% nutrition feel business selling products investments marketing that, growing new the on. that as expansion, geographic it business now that to has just types And been accomplished that at been the products and additional crops So of to in XX% through plant of for

to those line product executing well. to differentiated, forth. it’s invest matter strategic good driving got products to a works really that us and those like the is market we’ve product is new that our those So so certainly a add And feel of very development agronomists We part target of plan geographies launch it penetration. to in

not For we few snow did certainly in the a last California the conditions. better years, winter I drought had years, say then has while previous of the we’ve out three would weather is the helped.

that the it in it. across we about that And to a growth that of that excited business, of taken company, about a and maybe we’re potential is really big as few negative the it that. last so years been that our significant I been product a actions but think driven has small by have double-digit still very But excited we’re on the and large, have it’s growth was prior hasn’t line

SG&A know more Okay. happen curious to expenses ideally you’ve the liking No, I that’s terms incremental so if is thing and a back And in the office, about finally leverage, to just one of result you that’s starting some of past talked more. then in wondering to as great. and return speak to start incur

see a still OpEx sales that We growing percentage a [indiscernible] is obviously starting are low we at lot. to of if our sales Mitra, the as as we’re look very Yes,

little can percentage be the bit So misleading. maybe a

compensation of spend also in, coming outside the coming sales to cetera, a chunk see look at actual to we are trade and you hire typical little of bit spend, investments we’ve by the it. sales gone and seeing the hold things. actually into as on universities, terms the research it’s growth. If the back again have of cetera, up in trials more bigger our R&D discretionary in. That’s now there increased up in conferences, to people back It’s with drive primarily shows, really starting traveling, some made a of marketing also et been that customers see and and kicking But we gradually sort and going us two bit capabilities out are as that et together driven driven the further enable that spend gradually little the

we’re spend the level. sort So as that reduced spend pandemic it’s when the again into spend opposed emerging of would kind level we – the look of it post to say does at today, feel pandemic I

the again Okay. for Thanks taking That’s questions. great.

Thanks, Mitra.

to floor you. our any session. gentlemen, concludes Thank Ladies back and turn final question-and-answer Mr. I’ll comments. for Harris the this

thank call your much support our Melissa. and forward appreciate Once We Thanks, again, joining really very today, reporting today. as QX to for our you time your out we look well as at XX June XXXX potentially we the some and in meantime, the Conference XX, on be July. as Sidoti as Wainwright In Conference well will presenting H.C. May results on the others.

press So joining We it. again stay thank releases appreciate you us But about for today. tuned for those. really

concludes This conference. Thank you. today’s

You disconnect you time. your Thank for participation. lines may this at your