Brian Lenz: All great questions. And I will say, Kristen, you made us work hard this quarter. I think you were the top revenue estimate out there, so we had to work hard to beat your projections. But regarding the cash flow and what are we going to do? I mean, look, we are positioned very favorably, I think, as we generate cash. And, you know, we certainly think the second quarter is going to be a very large quarter from cash flow perspective. But, you know, if, if the interest rate backdrop continues and it remains elevated, sofa remains where it is, we’ve got the ability to pay down 50% of the revolving line that is attached to this Aries deal that we did this past December. But as cash builds on the balance sheet, we can pay that down, reduce our interest expense, reduce cash going out.
I mean, I’ve said this before, and I don’t mind saying these things like a broken record, but we are hyper focused on shareholder returns. We’re hyper focused on creating shareholder value. I mean, a lot of the investors have been with us since the beginning, and we can’t thank them enough. And look, we’ve got great product that helps people. So with all of this coming together, I think the stock is undervalued. I think our board feels the stock is undervalued. We’re seeing other companies in this backdrop paying down their debt. You see where our net leverage ratio is coming down at 0.85 x. And if there’s an opportunity to redeploy the capital, buy back some stock, look at other ways to enhance shareholder value. I mean, these are all things that we’re considering, and we’re talking at the board level.
No decisions have been made yet. Let’s see how we continue to progress. But with the way that we’re forecasting cash flows, we certainly are going to be opportunistic. We are not looking to onboard assets. Kristen, I don’t know if that’s something that you were asking. That’s not really something that we’re looking at here, but investing in analytics, investing in our it infrastructure, investing in new systems to help streamline and enhance efficiencies. I think something with Brad coming on board and his, I guess, financial operational experience has been a great value creator for us here internally at the company, looking at all types of ways to extract more margin and more value out of the business. So we’re very excited about the opportunities ahead.
Skyler Bloom: Kris. And it’s Skylar. I would add that in the event that we don’t have the revolving credit facility fully drawn in the back half of this year, that represents upside to the net income guidance we provided. Today we contemplate a fully drawn debt piece. So in the event that we continue to stack cash on the balance sheet, yet another lever for upside to currently provided net income guidance.
Kristen Kluska: Absolutely. Okay, thanks. Appreciate that. Color. And then just my last question is, obviously, this is a great business where people can donate plasma, very often a couple times a week. So I know you’ve talked before about different incentives and ways to get the specialty plasma, but have you looked to further find ways to get more donations from those patients that you’ve identified? And if so, has any of this worked for increased donations?
Adam Grossman: So the answer is yes, Kristen. You know, once once we’ve spent the money and done the testing and identified which donor either from one of our third parties or in one of our ten wholly owned and operated centers, you know, once we know who the donor is, we’ve deployed strategies this year where we’re paying bonuses for frequency and we’re increasing some of our donor fees on the incentive plasma because obviously we’ve got margin there. I don’t like to say we’ve got margin to spare, but certainly more is better. And we’ve seen these programs work in our existing centers. We’re starting to roll them out to our third party. So, you know, we wouldn’t be as confident in our guidance, we wouldn’t be increasing top and bottom line guidance if we did not think that we were able to meet these forecasted targets.
So as we’ve been demonstrating to the street for the last ten plus calendar quarters, we feel really good about our positioning. Everything seems to be working well. And, you know, at the end of the day, patients do well on the products that admobiologics produces. Full stop. Patients are doing very well on bivigam. I’ve seen and heard and been told some very, very heartwarming stories as the medical conference season starts to unfold. Was the clinical immunology society meeting, I think it was last week. And I had a number of inbounds from some of our field force on just stories that physicians are sharing with us about patients who were just not doing well on their other IG and they would switch to incentive and they’ve improved. It’s what drives us.
It’s what fuels us. And we’re going to keep investing into this business. We’re going to keep investing into identifying more, more plasma donors. But we think again that this is the early stages and we can collect more and we will produce more and we will sell more. And just to add, right. I mean, those programs are taking traction. We’re starting to see the results of it. And as we stated, right, we’re retaining our internally sourced plasma to be, to meet our manufacturing needs. But it’s good to see that the traction is starting to gain.
Operator: Our next question comes from Gary Nachman from Raymond James. Please go ahead. Your line is open.
Gary Nachman: All right, great. Good afternoon. And my congrats as well on the quarter and all the progress, and thanks for that plug before on our conference, Adam?
Adam Grossman: It was great. I got to tell you, we had a lot of great meetings out of that conference. And I really think that that was a look, it was the start of the year and look at where we are. I mean, it takes a village to get all this done. So I appreciate all of our analysts and all of our banks.
Gary Nachman: Yeah, for sure. So, I mean, when you say you’re assessing the company’s potential beyond 2025, a little more on how you’re doing that and the types of analyses you’re doing and how do you expect to communicate that and in what timeframe and forum? So that would be the first question. And then, I guess when you talk about the durability of a cent of longer term, the payer question immediately comes to mind. So making sure you won’t get any surprising pushback there. So the status today versus how you see this in a couple of years, and then also that no other competitors out there can do these hyper immune products and that you think you’ll be differentiated in that space for a long time. All great questions. I think I wrote them down.
