Get started. We're 30 seconds early, but so much the better. Thank you everyone for joining us this morning. For those of you who don't know me, I'm Elizabeth Anderson. I'm the Healthcare Technology and Distribution Analyst here at Evercore. Very pleased to be joined by Henry Schein this morning. Ron South, as many of you know, CFO, Graham Stanley, VP of IR and Strategic Financial Project Officer. So, thanks, guys, for coming down to Miami. Appreciate your being here. So I guess maybe, you know, one of the unfortunate topics of the quarter as well, we'll hit upon, as I'm sure you know what I'm about to ask, and I do that. It seems like can you just give us an update on sort of the sites?
I know you said almost everything was back up and running as of Monday. So maybe just sort of update us on what's going on there.
Yeah, I mean, happy to say that, you know, as of this morning, all the European markets are, well, you know, the websites are up, running, taking orders, business as usual. U.S. was up, back up again Monday morning, before the start of business. Canada was up during the day, U.K. before the day started on Tuesday, and the rest of the European businesses have followed that. So we're back to normal.
Great! That's, that's very good to hear. So as we think it's, you know, obviously early days in sort of the customer retention and sort of follow-up to this, can you talk to us about sort of any early learnings from that in terms of how you're thinking about addressing that or things that have come across in sort of your conversations with customers?
Well, I will say the overriding theme in terms of what, you know, the learnings, is the importance of that strategic relationship with the customer, right? If you have a transactional relationship with your customer, they're just gonna go complete the transaction someplace else. You know, so, and we have a very small percentage of customers who, that is the type of relationship they have. They go to the website, they buy something, they don't have a rep, that's all they want. And in those situations, they went and bought from somebody else.
Yeah.
But that's a relatively small percentage of customers.
Probably, yeah, not your most profitable customer.
Exactly-
Yeah
... as well. You know, and so, but those customers who use the rep and have a strategic relationship with that rep in order to help manage their practice more efficiently, more profitably, whether it be that individual practitioner who leans hard on their individual rep, or the national DSO with whom we have, you know, periodic and regularly scheduled strategic meetings with them, those are the customers that, you know, yes, you tell us what you need us to do to make sure that it, it's easier for you to fulfill our orders and get, you know, get product to us. And that's what we did.
Mm-hmm.
The importance of that strategic relationship really came to light, you know, through this whole process that we've gone through.
Yep. No, that makes sense. And I think when we spoke on Monday, you talked about, maybe, that the sort of promotional plan in terms of thank you to obviously some of your customers and sort of retention for, for some of the more transactional ones, was sort of 20% maybe on the Henry Schein brands and 10% on the national brands. Can you say, was that, how did you sort of, is it, how did that sort of become the right rate and sort of, are you- how are you thinking in terms of the, the length of that potential promotion plan?
Well, I think, you know, in terms of why that percentage, I'll kind of defer to the, you know...
The pricing gurus?
Yeah. You know, I wish I could say that was - that I know of the significant science behind it. But I think that at the end of the day, we felt like that was, you know, sending a message to our customers. And it was to all - it's to all customers, right?
Yeah.
It's for those who we inconvenienced through this whole, you know, cyber issue. It was a thank you for sticking with us, and it's also an attempt to kind of bring back the, like I said, the small percentage of more transactional type of customers, you know, to come back as well.
Got it.
How well we're going to do it? That remains to be seen.
Okay.
You know, we'll be able to kind of use this to gather data to see how many, you know, what our customer volumes are relative to, say, the first half of October, and then we'll be able to see if we need to extend it or not, but-
It really just launched, what? Last week, and it was Thanksgiving.
It was about two weeks ago.
Two weeks, yeah.
It was, it was, yeah, two weeks ago. I think that that was, you know, we, we got so we have some early data.
Right.
We do have some early data.
But it's still like, you know-
Yes
... you don't really have data from last week, so-
Absolutely.
Yeah.
Absolutely.
Yeah.
We're getting there.
Early days on that. Okay, that makes, that makes sense. So, you know, I think you talked about, in the call, sort of the, just sort of disambiguate the $0.55-$0.75, right? That was the impact of sort of like the manual pack and pick, the lost sales, like that kind of portion on the business. Not necessarily sort of the one-time items which you talked about, which I think you're gonna non-GAAP out. That's the right way to think about that in terms of-
Yeah, and just to clarify that a little-
Yes, thank you.
... so the $0.55-$0.75 a share that we called out in terms of the estimated impact in Q4, kind of our early estimate, is really the business interruption impact. Meaning, what's the effect of the lost revenues? What's, you know, what's the margins, and then ultimately, you know, the operating income associated with those lost revenues.
Okay.
It takes into account, and we anticipated, okay, we may have to do some discounting, such as we're doing now.
Yeah.
But it does not include kind of direct costs that we are incurring right now that are. And when I say direct costs, costs that are directly attributable to this to the cyber incident. A lot of these are in the form of professional fees, you know, the IT experts, the third-party IT experts who are working with us, the legal costs we're incurring associated with this. You know, these are all, you know, costs that we'll likely call out as non-GAAP expenses because they are one time and would not have been incurred, if not for the cyber incident.
Yeah. No, that makes sense. And then as it relates to sort of additional warehouse resources that you may have employed, is that something you can kind of turn on and turn off fairly quickly? So, you know, if you had to, you had to have extra people, you know, everybody except for, you know, Graham, packing and forget it, and you in the organization, like, that's something you can then, like, ramp down pretty quickly as we go back to sort of a more normalized cadence, right?
That's right. I mean, in the U.S., we actually have, like, some temp agencies that we tap into for, you know, heavier times of the year anyway. And we literally went to a 3-shift, 7 days a week, approach because of, because of the inefficiencies associated with the pack and pick. In some of our smaller international markets, it was literally we had, you know, the office personnel out in the warehouse, you know, helping with the, you know, picking and packing, you know, product for customers. So whatever it was that we needed to do to get the product out, we were doing it.
Got it. Okay. Maybe just sort of switching from I'm sure what's your least favorite topic to be speaking about these days. If we think about your core business, how do we think about sort of the macro environment and sort of patient traffic as we've kind of gone into the, to the end of the year, maybe sort of October, November?
Yeah, and I'll try to link this back to what we saw in the latter half of Q3 and what led us to... When we reported our third quarter results, we did adjust our guidance, and obviously, we had to adjust our guidance for the cyber incident-
Yep
... that we've experienced, but we did it in two steps. We also, before we kind of layered in the effect of the cyber incident, we did with reference to our original guidance essentially bring it down. We went to the bottom half of what we had originally guided. So we had about a $0.16 range. We narrowed that to a $0.08 range. That $0.08 range was the bottom half of that $0.16.
Yep.
That reflected really softness, generally softness that we were seeing on the Premium implants, more so in North America than in Europe. Then just a little bit of trending softness that we saw just generally in our dental market, and that we began to see more in September than anything else. So we kind of figured with that type of momentum or softening momentum going into Q4, that worked us to the bottom half of our guidance. We also said then that in terms of 2024, we've always kind of worked off an assumption that dental markets are growing, the market itself is growing 2%-4%.
Mm-hmm.
Given that kind of softening momentum, our expectations at that point in time going into 2024, was that we would be closer, the market would be something closer to the bottom end of that 2%-4% range. We haven't provided 2024 guidance yet, but when we do, we'll, we'll take all that into consideration.
Got it. And you're, you'll provide that on the fourth-
Mm-hmm
...quarter as per normal. Okay, that makes sense. And then maybe on the equipment side, you know, how do we think about sort of the demand trends there? I know you still talked about, you know, some more things in backlog, you know, across the portfolio. Can you kind of just maybe, tease those trends out for us to sort of understand what's going on there?
Yeah, I'll—I think when you talk about equipment, you really got to look at it as in the two subsegments, right? You got the one subsegment, which is what we call traditional equipment, and in the dental industry, that being typically the chair the patient is sitting in when being treated. We're still seeing, you know, very steady demand for traditional equipment. We've had, you know, double-digit growth in standard equipment in the early half of the year. Third quarter, we saw that growth work its way down more to kind of mid-single digits.
Mm-hmm.
But it was a, it was still very encouraging. We actually saw an increase in the backlog, and Graham, you can count on this a little bit more, too. I think that's more, that's not unusual for us to see an increase in the backlog in Q3, in anticipation of Q4 orders, as you know, Q4 tends to be a heavy equipment quarter-
Right
... for us. A lot of tax incentive buying happening, you know, by our customers.
Yep.
On the high tech side, there's really a couple of things there that are impacting high tech equipment revenues. One is kind of the ongoing lower average selling price of intraoral scanners.
Mm-hmm.
That has continued, and we were thinking that might annualize a little more so Q3, Q4, but we now believe that's not gonna annualize until probably the first quarter of next year.
Okay.
So that's causing some disruption, but we are seeing very good volume, very good demand for scanners. It's just that lower average selling price is kind of keeping that revenue pretty neutral or a little lower.
Got it. And that's just sort of... So and those sort of that lower selling point is just kind of to broadly expanded access. You're talking about sort of continuing-
Yes
... penetration of that product, not like a further replacement cycle.
Absolutely. Absolutely. I think that, you know, the price point has become very attractive for a lot of practitioners who did not have scanners yet, or they've added on scanners. If they only had one scanner in their practice, perhaps they've added on scanners as well. So that's one thing that's disrupting a little bit on the high-tech equipment side. And the other thing that's being a bit of a disrupter on high-tech equipment is 3D printers. We're seeing, you know, the New York Dental Show was this week, started on Sunday. We sell at that New York Dental Show, and our head of sales, who was there, Dave Steck, you had a chance to meet as well-
Yep
... mentioned that that was probably among the most popular things being sold, that and scanners, on Sunday. Sunday is a fairly busy day. That's the day dental practices are closed. A lot of the local dentists will come to the dental show, and then they end up buying something. So we did see some good sales of 3D printers-
Mm-hmm
... as well as scanners. But what that means is that there could be some dentists who are buying 3D printers in lieu of higher priced, more technical, more complex equipment, such as a chairside mill. And you know, what we're starting to see more so is that our chairside mill sales tend to be replacement units. They tend to be when a practice wants to replace their chairside mill as opposed to an initial investment in chairside mill. I think more and more of those initial investments are happening on the 3D printer side. That is likely price point, right?
Well, that's what I was gonna ask, yeah.
You can kinda take a chance on a 3D printer for $15,000. You're not gonna take a chance on a chairside mill for $60,000. So I think that's creating a little bit of disruption within the high-tech equipment market as well.
Got it. No, that, that makes sense. One of the things we sort of picked up too, was that maybe some of the pace of office opening on the DSO front has sort of slowed a bit just because of, you know, higher debt financing costs, et cetera. Is that something that you guys have seen come through in some of the demand, or is that sort of, that DSO opening has been sort of fairly consistent for you guys?
I don't think we're seeing a significant effect from that.
Okay.
I think that, you know, some of our customers, DSO customers, grow through acquisition, others do it purely through de novo practices. And, and we're still seeing, you know, I think sufficient growth there that hasn't been disruptive for us.
Got it. All of sort of the changes in equipment, manufacturing and things that are sort of COVID, are we sort of through that hangover? I know, like, people are talking about, like, a backlog in chairs and, like, things like that. Is that sort of normalized, or do you still think that that's a somewhat disrupted situation that still needs to normalize a bit?
I think it's normalizing.
Okay.
I don't know if I would say it's completely normalized. Something we've talked about before was when you think about some of the end market effects of the pandemic, there was kind of multiple things in play, at play. There was some of your older dentists, we did see a higher retirement rate among dentists during the pandemic.
Yeah.
So some of your older dentists just decided, "Okay, this is... I'm out." You also saw a lot of patient movement, some patient turnover, people who were going to a dentist that was near the office they worked in. Well, now, if they were spending more time working at home, they were changing dentists.
Yep.
So this created, you know, some... You think about that dynamic in the end market and think about that dynamic with those dental practices. Some were losing patients, some were gaining patients. And so you did see, I think, that led to a lot of this standard equipment investment that we've seen over the last couple of years.
Mm-hmm.
Partly the retirements, I don't think the retirements have been completely backfilled personally.
Yeah.
I think the demand for dentistry services exceeds the supply available out there right now. So those practices who did pick up new patients, whether their dentist retired, or their patients, you know, had to switch because of their work location, they expanded their practices, they added chairs, they did some... That created some good investment. I think a lot of that is starting to play out a little bit now.
Yep.
You also have situations of people who got out of the habit of going to the dentist. You know, their appointment was during the pandemic, early in the pandemic, it got canceled, and they just didn't rebook.
Yeah.
That's why before you leave, they make sure you, you know-
Yeah
... come back in six months-
Yep
... here's your appointment, right?
Yep.
And you're starting, you know, when we talk to our customers, they're starting to see more and more people coming back, and they're coming back for the first time since prior to the pandemic. So that's, that's increasing some traffic, too. But I do think we have a little bit of a capacity constraint. I do think that there's, you know, there's, there is a bit of a shortage out there, whether it be dentists or-
Right
... dental staff-
Yeah
... the hygienists, the dental assistants or whatever. And I think that's constraining that opportunity to grow beyond that market growth of 2%-4% a little bit as well.
That makes sense. And then where are the sort of release valves to that supply shortage? Right, like we talked about it taking sort of, I jokingly say, like two years to grow a dental hygienist.
Mm-hmm.
Like, how do we think about sort of those numbers and then obviously longer for, for a dentist or other clinic, you know, clinical staff? How do we think about how that eases?
Well, it's really two things. One is, we, you know, the elapsing of time hopefully will help-
Okay, yeah
... in terms of getting more hygienists out there.
Yep.
I do think there's also opportunity, and I was just at our Henry Schein One subsidiary last week, meeting with them. There's opportunities to make the offices administratively more efficient.
Mm.
So that takes some of the burden off that front desk staff, right? Right now, when you think about your typical trip to the dentist. There's literally about 2,000 dental plans out there in the U.S. right now. So what's your coverage? You walk in, your coverage is gonna be different than the patient that just came in before you. Are you eligible? You're gonna need some restoration treatment. Are you eligible for that? Staff spend a lot of time tracking down what's insurance, what's gonna... So, and if you're sitting in the chair, and the dentist says, "Okay, here's what we can do," and you say, "Well, how much is that gonna cost me?
Yeah.
They don't know.
Yeah, they have no idea.
They have no idea. All of that takes time. That it creates inefficiency in the practice that requires them to add on administrative staff, which right now is difficult to find. If we can help them become more efficient at that type of administrative process, it takes some of that, some of that, you know, pressure off. So that is something where, you know, that all kind of falls under the larger umbrella of revenue cycle management, and that's something that we're really gonna put, I think, a greater focus on going forward. You know, Henry Schein One, we have like Detect AI, which is our artificial intelligence tool that help dentists diagnose cavities more efficiently and more accurately, which is a great tool.
But it's like I said to them, I go, "That's, that's sexy, but the fundamentals are: How do we get better at just that?" In this day of AI, how is it that we don't know almost immediately what your dental eligibility- what your benefits are when you walk in?
Yeah.
So that's the type of thing that we can do with our customers to help their practices become more efficient, which in turn takes perhaps some of that burden of having to find that many staff to support them in the future.
Yeah.
I think some of the investments that have been made in equipment are also procedurally more efficient as well.
Yes, yes.
So, you know, a digital scan is a lot quicker than the sort of traditional sort of impression material. If you can have two operators working, you can be having someone prep one patient while you're treating another. So again, you can get better productivity out of the dentist in order to, like, sort of make sure that procedures are more efficient. And taking some of the points that Ron's just been saying, taking some of the back office work away from the dentists and putting it into the back office for someone else to do.
Yeah, and that's, I mean, that's really the only way that they can grow revenues, right? Because if dental reimbursement, you know, is still not-
Well, it's growing productivity.
Yeah
... but it's also growing the range of procedures.
Yes.
You know, things like, so like mouth guards or, you know, more dentists are getting into implants, more dentists are getting into orthodontic procedures-
Yep
... things like that.
Yep. No, that makes sense. And maybe to your point, that's a good segue into talking a little bit more about Henry Schein One. How do we think about sort of where people are focused in those investments? Is it on, again, on the sort of revenue cycle side, and or is it sort of the transition from, you know, server-based dentistry, so like cloud-based? How do we think about where that is and sort of the opportunity to sort of expand people's presence and sort of number of services that they subscribe to in that?
Well, we do believe there's continued opportunity in the revenue cycle management side. I mean, you've seen the dental, you know, the surveys, you know, what are the biggest pain points for a dentist? You know, and it's really kind of three areas. It's staffing, it's reimbursement from, you know, from the insurers-
Mm-hmm
... and it's dealing with last-minute cancellations. And Henry Schein One can, you know, can provide solutions to all three of those, right? So that's something that we really need to, you know, work with our customers on to try to help them solve this with. You know, the motto that our team has come up with as working on the revenue cycle management improvements is, you know, help our customers get paid more-
Mm-hmm
... get paid faster with zero effort. Not less effort, zero effort, right? And that's how it should work if we can get this automated, right?
Yep.
So I think that, while, like I said, while we want to and we're getting, you know, a very, very strong positive reaction to our AI tool, if we can make things easier at the front desk and when at the entry point, when the patient comes in-
Mm-hmm
... that efficiency works its way all the way through the practice. And so those are very important tools that we need to do a better job of educating our customers in terms of what they, you know, what these tools can do for them. But we also got to make the tools better and more useful for them as well.
Yeah.
That's what the goal is right now.
Is that sort of because it's sort of that productivity, and to grab your point in terms of growing practice revenue, does that help with sort of maybe the cyclicality of that business too, to be able to, you know, okay, maybe my patient volumes are great, and I'm a little worried about this macro, but like, here are some things I can do to make my practice more profit? Like, that was one of—I mean, that was my biggest surprising takeaway out of that COVID lockdown period, was just like the investment that went in by dentists during, when, you know—
Yes
... they were shut down and had no revenue.
Yeah. Yes, I mean, we do sell tools that will allow them to prioritize. If for whatever reason there's a downturn, and you've realized you've got - I've got five or six open appointments coming up next week, we have tools that will help them identify patients who haven't come in, that should be coming in.
Yeah.
You know, and if, when we get really good at it, it's like, "And don't worry, they are insured. They're gonna, these people are gonna pay you, too.
Yeah.
Or, someone's gonna pay you as a result. So how do you improve that process of drawing, you know, more traffic into the practice? And that's another area within Henry Schein One that we can increase that share of wallet with our existing customers, right?
That makes sense. And then, I mean, we've gone 23 minutes without speaking about your medical business at all. So maybe we'll switch over to there. How do we think about the cyclicality of that business? Obviously, it has pretty different dynamics than the dental side.
Yeah, I mean, cyclicality, you know, a lot of our medical, especially the sub-segment of medical in which we operate, which is either kind of starting with the ASCs. Well, we don't. As everyone knows, we don't necessarily serve the hospitals-
Yep
... themselves. Our philosophy has been to follow the patient, and more and more patients are now being treated at ambulatory surgical centers or in a physician office, or now more recently, at home, and that's where we've been making our investments. So that cyclicality tends to be driven, quite frankly, by things such as, what are flu infection rates? What are the - but also, what is the migration of procedures that's working its way from a hospital setting to an ASC setting?
Mm-hmm.
Stanley loves to tell people that, about his knee replacement surgery he had earlier in the year, and he did it at an ASC. He didn't go to a hospital, he was home that night.
Yeah.
That's something that was unheard of just, you know, a couple of years ago.
Yeah.
So more and more procedures working to the ASC, more volumes of patients going through the ASC. So I think that's more the cycle that we're looking for, that's more the, you know, as the ASCs are building out and requiring more supplies, that's better for us. As more, as more, procedures are being done in the physician setting, that's better for us. And then now that more and more people are being treated at home, we've made these investments in, in some home healthcare, providers. Mind you, we are not providing the home healthcare, we are providing supplies-
Products for the home
... to the home healthcare provider.
Yeah.
Right? So, but we see that as a great area of growth, you know, going forward.
How big is that home healthcare business as a percentage of your, I don't know, medical revenues or however you think about it?
You know, we did disclose what the trailing 12-month revenues was for Henry Schein.
The home health is about a $300 million.
Yeah, it's about a, in aggregate. Now, does that include Prism, Graham? Remind me again.
Yes, it does.
Yeah, that's it. So, you know, our medical business, you know, so you could call it, you know, approaching 10% by the time-
Yeah
... we're, you know, we get to something, right?
How do we think about sort of that growth rate versus even, like, within the sort of doctor's office and ASCs that you're, you've been talking about?
Our expectation is it can grow faster than what I'll call our legacy medical business. We think-
Like high singles or something?
Yeah, we think it can grow faster, and it also gets slightly better margins than our legacy medical business as well.
Got it. Okay. And then I think you also talked about a little bit how you're sort of more thinking about getting a little bit more into the orthopedics section, X, hips, hips, and knees. Why, why is that sort of another attractive area for you guys to go into?
That's a couple things. One is we just think there's gonna be ongoing increase in demand for that type of product.
Yeah.
But two, we think. We expect ASCs to be taking on more and more of these procedures and-
Providing more of a one-stop shop.
Yes. Yes.
Yeah.
And so we can be part of that.
Okay. And how do you sort of pick, like, what are the right areas for you guys versus somebody, you know, some of the national brands, et cetera, that we think about?
You know, it's an amazing- It's a much more fragmented field than I realized-
Mm.
When we started looking at what, you know, different alternatives for us out there. So a lot of this comes down to, you know, what field do you want... Where do you think there's demand for certain things? Things like hips and knees, that's a very, you know, that's a various - first of all, it's a very established market, but it's also.
Yeah
... much more complicated, and it's something that we were probably not looking to pursue in the short term.
Yeah.
But there are other areas, hand, wrist, ankle, foot type of surgery or orthopedic surgery, that is quite common and where we think we can. And more likely to be happening in the ASC environment, albeit Stanley had his knee done in an ASC.
Yes.
And so I think that's, that's where we see, you know, greater opportunity for us.
Got it. And is that something you would look to sort of bolt on, or is that something you think-
Yes.
You could... Yes. Okay.
Yes.
Okay. Got it. That makes sense. And then I think at your Investor Day, you guys talked about maybe, like, 40% of your operating income coming from sort of dental, specialty, and tech in 2024. In light of the macro environment and what you said about sort of the, the expected growth rates, is that sort of still something that you think is sort of the right way to think about that business, or you think that may be pushed out because if the macro deteriorates?
Well, it's still our goal.
Yeah.
It is still our goal.
Okay.
You know, we're still gonna be pushing to get to that 40%. We're expecting continued growth in Henry Schein One on the technology side. And, you know, while there is some implant softness, we've also, you know, successfully executed on 2 acquisitions in the implant space this year that will add to that operating income. And then there's also you know just the steady growth that we see in Endo with our endodontic products. That's been you know a very good performer for us. And so I think you add all that up, we still have a very good opportunity of reaching that goal of 40% of our operating income coming from those product categories, that being dental specialty and technology, and value-added services before the end of 2024.
Ron, I'd also highlight that maybe there's a little bit of softness in implants in the North American market.
Yeah.
But our European market, which is, they're probably, you know, half of our implant business, that's still growing pretty well.
You think that's just a function of sort of different consumer spending patterns, and so what would you attribute that to?
Yeah, I guess it's a trend in that market as well. You know, maybe, the European market, you know, didn't grow as fast, post-COVID, so it's probably starting off at a more steady, sort of like longer-term, growth rate.
Yeah. And you feel like you have the right implant portfolio for, at this point, for sort of everything you need in terms of types of products, et cetera, or you still feel like that's a future investment area?
No, go ahead.
So I mean, yeah, there's products we already have, where we're gonna spend money in order to launch them in those markets.
Yeah.
So, for example, S.I.N.
Yeah.
You know, so making sure there's a successful launch and, yeah, building that sort of brand and product line in the U.S. Yeah, there's always bolt-on opportunities, different parts of the market, looking at different product lines-
But it doesn't sound like you're, like, dying for-
Right.
Right.
Correct.
Something like that.
Yeah.
Okay, maybe in the last we only have 30 seconds left, what do you feel like is the least understood thing about Henry Schein by investors?
I think people... I think it's either easy to undervalue the value of the diversification that Schein brings, right?
Mm.
I think we frequently get questions about around, well, you know, company X and company Y are talking... You know, they had to take their guidance down more than you did, or they're seeing much softer markets, and you don't seem—it doesn't seem to be as soft. And I think, you know, a lot of the companies in the dental industry op—When people ask us about our competition, we have to clarify, "Well, do you mean in distribution? Do you mean in implants? Do you mean in technology? Do you mean our medical competition? Do you mean..." 'Cause there's nobody who does all of those.
Right.
Right? There's nobody who does all of those, and I think that's the thing, that we tend to get pigeonholed sometimes with those who are—have a narrower scope of operations than we do. And sometimes the beauty of the broader, you know, portfolio allows us to weather some of the, you know, some of the macroeconomic conditions better than others.
Great. Well, on that note, I think we are out of time. Thank you, Ron. Thank you, Graham.
Thank you.
It's a pleasure.
Great. Thank you.