Diversified Healthcare Trust (DHC) Q1 2021 Earnings Call Transcript

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Diversified Healthcare Trust (DHC -1.25%)
Q1 2021 Earnings Call
May 7, 2021, 8:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Diversified Healthcare Trust First Quarter 2021 Earnings Conference Call. [Operator Instructions]

Now I would like to turn the conference over to Michael Kodesch, Director of Investor Relations. Please go ahead.

Michael Kodesch -- Director of Investor Relations

Good morning, and welcome to Diversified Healthcare Trust calls covering the first quarter 2021 results. Joining me on today's call are Jennifer Francis, President and Chief Operating Officer; and Rick Siedel, Chief Financial Officer and Treasurer. Today's call includes a presentation by management, followed by a question-and-answer session. I would like to note that the transcription, recording and retransmission of today's conference call are strictly prohibited without the prior written consent of Diversified Healthcare Trust or DHC. Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon DHC's present beliefs and expectations as of today, Thursday, May 6, 2021. Company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than through filings with the Securities and Exchange Commission or SEC.

In addition, this call may contain non-GAAP numbers, including normalized funds from operations or normalized FFO, EBITDA, EBITDARM and cash basis net operating income or cash basis NOI. Reconciliations of net income or loss attributable to common shareholders to these non-GAAP figures and the components to calculate AFFO, CAD or FAD, are available in our supplemental operating and financial data package found on our website at www.dhcreit.com. Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements.

Now I'd like to turn the call over to Jennifer.

Jennifer F. Francis -- President and Chief Operating Officer

Thank you, Michael, and Good morning. Welcome to our first quarter 2021 earnings call. To begin today's call, I'll provide detailed commentary on the current operating environment and some of the recent actions we've taken to meet our long term goal of maximizing shareholder returns. We believe the country is beginning to recover from the pandemic, as we're seeing a marked decrease in confirmed COVID-19 cases and hospitalizations across the United States. Since these metrics surged at the start of 21.

We believe these trends have been and will continue to be supported by the vaccine rollout, which is progressing at various timelines across each state within our own portfolio COVID-19 vaccination clinics at our shop communities are complete, which we believe is a critical step toward improving resident competence and senior living and growing the profitability of our shop segment. Upon completion of the vaccination clinics, over 96% of residents and almost half of the employees within our shop segment were vaccinated, although we expect this number to fluctuate with move in and move out.

Five Star Senior Living continues to work to educate employees about the benefits of being vaccinated, and we hope that will encourage higher acceptance. vaccinations have also had an impact on the number of active COVID cases in our communities. As of May 1, only 11 residents in our managed communities had active cases of COVID-19. All of these communities in our shop segment are accepting new residents move into our shop segment accelerated in the first quarter of 24% relative to the fourth quarter of 2020. And leads have increased substantially. Five Star continues to focus on generating more professional and resident referrals, as these two sources of prospects tend to result in higher conversion rates and coming to lower costs and third party referral sources. Five Star is increasing investment in its digital marketing platform, as it mirrors the quantity of leads received from third party referral sources, but it is expected to result in greater conversion rates and longer length of stay.

Finally, Senior Living construction activity across the country has slowed both in construction starts and units under construction, which will of course result in reduced new supply. As a result of these trends and Five Star efforts, we've seen sharp occupancy begin to stabilize in February, March and in April, and we're cautiously optimistic that these trends will continue through the balance of the year. While same property shop average occupancy declined to 69.5% in the first quarter of 2021, down 320 basis points from the fourth quarter of 2020. March occupancy increased 30 basis points from February lows excluding the approximate 1500 skilled nursing units that we've announced that were closing March occupancy increased 10 basis points from February to 74 70.5% and increased another 30 basis points to 70.8%.

In April, we believe the fastest path to DHCS stock price recovery is a rejuvenation of our shop segment. Following strategic discussions with Five Star we recently announced our plan to transition management of 108 communities with approximately 7500 units to a diverse group of best in class operators without paying a termination fee to Five Star. discussions are well under way with a number of operators, most of whom have a regional focus, which we believe is important for the types and size of communities that were transitioning

Our interviews and in person meetings and community tours with potential new operators have gone very well. And we're aiming to be finished with these management transitions by year end. Additionally, we're supportive a Five Star strategic plan to reposition its business to focus on managing larger communities with residents that require a lower level of care. To support that strategy, we've begun to close the skilled nursing units in our Five Star manage ccrcs and repurpose them to compliment the needs and requirements of the communities.

Finally, the RMR group will assume control of major renovations and repositioning activities at all of our Five Star managed Senior Living communities. In exchange for these and other negotiated changes to our relationship with Five Star, we agreed to amend the calculation of incentive management fees Five Star can earn. We want Five Star to have the incentive to maximize port performance. So we continue to have so it will continue to have the potential to earn 15% above the base year of 2021 budgeted EBITDA

Going forward though no incentive fee will be paid on Senior Living communities undergoing major renovations or repositioning until the end of the first full calendar year following the disruption and operation and that yours eba will become the new base year over which the fee is calculated. They will no longer be a cap on the potential incentive fee Five Star can earn. But the 120 communities Five Star will continue to manage for us. The target EBITDA for budget for 2021 is approximately $100 million. Based on first quarter performance and our forecast for the remainder of 2021 we do not expect to pay an incentive fee this year. Due to our planned capital spending the portfolio we expect nearly 60% of the base years to be reset over the next few years. As we execute on that capital. Our goal is for Five Star to improve operations to a point where they are earning incentive fees because if they're successful, we're successful.

Turning to our office portfolio segment as of the first quarter, same property occupancy and DHCS office portfolio was 93.6%. a 10 basis point decrease from both the sequential and year over year quarters. On a consolidated basis, though occupancy increased 90 basis points sequentially. During the first quarter, we executed 26 new and renewal leases totaling approximately 213,000 square feet at a weighted average lease term of 10.6 years, roll up in rents of 18.7% and with leasing costs of approximately $14.50 57 cents per square foot per year. This quarters leasing were heavily influenced by two leases signed for a total of approximately 122,000 square feet. At the recently -- we recently redeveloped Torrey Pines Life Sciences asset. Subsequent to quarter end, we signed another lease for close to 10,000 square feet at Torrey Pines, bringing the project to approximately 85% leased. The asset managers and real estate services professionals that are responsible for leasing our portfolio have seen a notable increase in leasing activity this year, both in increased renewal discussions with our existing tenants and new prospect to our activity.

Our leasing pipeline across our portfolio was healthy at 1.6 million 10 square feet, which is slightly higher than our pipeline in the fourth quarter of 2020 and above the 2019 average of 1.2 million square feet. Approximately 60% of this 1.6 million square foot pipeline is for lease renewals and 40% is for leasing vacant space. Additionally, more than 40% of this pipeline is at the signed LSI stage, with lease documents being negotiated. Rent deferrals remain largely unchanged since our last call and represent just four tenths of a percent of DHCS total annualized rental income. Rent collections continue to be strong in our office portfolio, as approximately 99% of our contractual rents due were collected during the first quarter and in April.

Our triple net Senior Living communities and wellness centers represent 8% and 4% first quarter NOI respectively. All of our triple net senior living and wellness tense tenants are current in the portfolio of triple net Senior Living properties had rent coverage of 1.48 tons for the trailing 12 months ended December 31 2020. Before I turn the call over to Rick, I wanted to highlight the RMR group's recently published sustainability report. This report provides insights, accomplishments and data regarding our managers commitment to long term environmental goals, investment in the platform's workforce, and social and governance performance over the last year. You can find links to the report on our [email protected].

I'll now turn the call over to Rick to provide details on our financial results.

Richard W. Siedel -- Chief Financial Officer and Treasurer

Thanks, Jennifer. Good morning, everyone. As Jennifer said, we believe the country is now beginning to recover from the COVID-19 pandemic. But our first quarter results are reflective of what has been an unprecedented 12 months in the senior living business. This extraordinary time of declining occupancies and expense pressure in our shop segments along with steps we took to shore up our balance sheet and think longer term about our liquidity needs have resulted in normalized FFR attributable to common shareholders of two cents per share and adjusted EBIT $73.2 million for the first quarter of 2021. As the shop segment has now experienced several quarters of pandemic impacted results. Much of my commentary will compare the first quarters results with the fourth quarter of 2020 or sequential quarters to provide more meaningful comparison than year over year changes sequentially same property cash basis and a y in our shop segment was down $8.3 million from the fourth quarter.

Same property revenues in our shop segments were down four and a half percent from the fourth quarter driven by lower occupancy. Same property average monthly fees however, were up approximately 2.3% compared to the fourth quarter were up 1.3% compared to the prior year. Same property expenses in the shop segment decreased one and a half percent from the fourth quarter or approximately $3.9 million primarily as a result of lower wages and benefits partially offset by approximately $2 million in costs related to the severe weather experienced in Texas, and several other states in February.

Looking at sequential office portfolio results, same property cash basis NOI was up 90 basis points largely driven by lower repairs and maintenance expense in the first quarter. Interest in other income was $2.8 million for the first quarter of 2021, a decrease of $7.4 million compared to the fourth quarter due to lower cares act income recognized interest expense was $60.1 million for the first quarter of 2021, an increase of $2.3 million compared to the fourth quarter, primarily due to the $500 million of 4.375%. Senior notes issued in February, partially offset by lower interest on the $200 million term loan we prepaid in February. In the first quarter, we spent $51.9 million on capital improvements, a decrease of $12.8 million dollars compared to the fourth quarter of 20 proximately $33.1 million of our first quarter spend was considered a recurring while the remaining portion of our capital expenditures are $18.8 million was spent on redevelopment capital projects.

We remain committed to investing capital into our portfolio to improve future results. with senior living operator transitions plans, we currently expect 2021 capital expenditures to be between 250 and $290 million, of which approximately 90 to $120 million relates to redevelopment capital projects, and includes the $19.6 million acquisition of a property physically connected to one of our existing medical office properties in Silver Spring, Maryland that we believe will provide flexibility as we evaluate several cars Central redevelopment opportunities for the combined site. I'd also like to provide a brief update on our liquidity position. At the end of the first quarter, we had approximately $310 million of cash set aside to redeem our 6.75% senior notes in June, when they can be redeemed without a prepayment penalty. We also had an additional $843 million of cash on hand. While we're cautiously optimistic about the recovery of our shop segment, out of an abundance of caution, we drew the $800 million that was available on our revolving credit facility as a precautionary measure to preserve our liquidity.

As previously disclosed, we expect to be out of compliance with one of the incurrence covenants contained in our debt agreements that will prohibit us from incurring additional debt until we are back in compliance that had been anticipated when we amended our credit facility in January. And we are confident that we will be able to utilize cash on hand for all of our liquidity needs, until we can reduce our debt service costs by refinancing a portion of the 9.75% senior notes that become callable in June of 2022. The credit facility amendment also provides for waivers for most of our financial covenants through June of 2022, and added an additional option to extend the maturity of the revolving credit facility into January of 2024. Other than the previously mentioned early redemption of the $300 million of senior notes in June, our next senior notes maturity is not until May of 2024.

That concludes our prepared remarks. Operator, please open up the lines for questions.

Questions and Answers:

Operator

Thank you. [Operator Instructions] First question today comes from Bryan Maher with B. Riley FBR. Please go ahead.

Bryan Maher -- B. Riley FBR -- Analyst

Good morning, Jennifer and Rick. Couple of questions for me. When we think about the transitioning of the 108, senior living facilities, have you identified any in there that you are just planning on selling and not transitioning? Or is the goal to transition all one away? See how they go and then make a sell decision? And if so how long are you going to give those properties to you know -- show some improvement.

Jennifer F. Francis -- President and Chief Operating Officer

So we have not identified any predisposition at this point, Bryan, we feel very positive about the operators that we've met with. You know, we're in varying stages of of transition, we we've talked to dozens of of operators, and then issued RFPs, to probably you know, more than 20 operators, we've interviewed 10 but are expecting to interview another 10. And we've even started touring some of those operators and doing some diligence. So we're pretty far along in the process. And at this point, we're in discussions on all of the communities that were transitioning and the operators that we've been speaking to are pretty excited about the prospect of managing these communities.

Bryan Maher -- B. Riley FBR -- Analyst

Great. And how should we think about the new contracts on those properties? Will they be similar to the Five Star contracts? Or will they vary and some degree that we should be thinking about?

Jennifer F. Francis -- President and Chief Operating Officer

It's early to tell, I think they'll be pretty similar to Five Star's. You know, at this point where we're just starting to, you know, as I said, we've issued RFPs, we've we've received proposals. So we're starting the stage of negotiation of those, but they will all be management contracts, and then fivestars contract is at market. So I think there'll be pretty similar.

Bryan Maher -- B. Riley FBR -- Analyst

Okay, and then on the property that you bought next to the MLB. In Maryland, you've been a little vague on what you might do with that property. Can you give us a little color as to, you know, maybe two or three options that that you might convert that to?

Jennifer F. Francis -- President and Chief Operating Officer

Sure. So I think it's important to note that the property that's under agreement, and we're currently in diligence, is one unit of a two unit condo building. The second unit is the 92,000 square foot, m ob that we currently own. And this is a situation where the whole is greater than the sum of the parts so well the MLB that we own is a good building. It will be better when it's combined and put back together with this hotel. You know, there, this is a market silver spring is spring is a great market, it's, you know, this building is close to the metro. It has many nearby retail amenities, it's about a 20 minute Metro ride to Union Station in DC.

So, this is a market where there, there are a few Life Sciences tenants in the market. And then the existing building is a hotel. So on its own, it's a strong investment, but together, you know, we, our redevelopment group is looking at it during this diligence period, and they're looking at it as should it should the whole thing be converted to a hotel, should the whole thing be converted to life sciences. And so we have a couple of good strong options that will get further along and our diligence and you know, determine what the best step the path forward is.

Bryan Maher -- B. Riley FBR -- Analyst

Great, that's some good color. First of all, thank you for the shop occupancy per month in your release that goes through March where we see the uptick sequentially. And I think you made some comments in your prepared remarks regarding April. But I didn't catch that. What would that number for occupancy be in April?

Jennifer F. Francis -- President and Chief Operating Officer

Let's say for April, our spot occupancy at the end of April, or I'm sorry, the occupancy was 71.8.

Bryan Maher -- B. Riley FBR -- Analyst

Does that 71.8 compared to the 69, five in March, so 130 increase month to month?

Richard W. Siedel -- Chief Financial Officer and Treasurer

No, Bryan, we have to on a go forward basis, we made the announcement of their restructuring with Five Star on April 9. And as you can imagine, once we announced that they were exiting the skilled nursing space and that we were shutting those units down. We haven't had a lot of sniff move ins in those units. And we have been placing residents elsewhere. So on a kind of April forward, and we did look at what March would look like in February on a comparative basis. But we're generally starting to strip out that 1500 sniff units out of the Five Star retained portfolio just to make it more meaningful comparisons. So if we, if we look at the entire portfolio, so this is the the Five Star retain excluding the sniff. And the transition communities, we did see occupancy increase from February to March 10 basis points on average, and from March to April, another 30 basis points.

And then I don't know if Jennifer said it, but we ended April with spa occupancy at 71.8 in that portfolio. And then just to provide a little bit more color, there is a difference between the properties Five Star is looking to retain or is retaining and the transition properties. So the ones they're retaining are generally the properties they're there, they believe they're better at operating and have more confidence in those properties ended with spot occupancy of 73.8% while the transition properties ended at 67.1% at the end of April. So there's there's still some work to do. But as Jennifer said, the operators we've been talking to are really excited. And and frankly, our team's been touring all of these assets. And we're excited about the possibilities as well.

Bryan Maher -- B. Riley FBR -- Analyst

Right. So there's a lot to unpack in what you just said. But to kind of dumb it down a little bit. Would you say that kind of no matter how you slice it, March to April was positive?

Jennifer F. Francis -- President and Chief Operating Officer

Without a doubt, Bryan, in addition to that, just activity leads activity tour activity has been very strong. We had 400 move ins in our shop portfolio in the week beginning April 25. And that's the most moving that we've had in the portfolio in 14 months. So occupancy is growing, you know, move ins are growing, you know, the increase in leads has been substantial. As I said, we had close to a 30% increase in leads in the first quarter over the fourth quarter of 20 40% more than 40% increase in web leads. So we're really starting to feel a change in our increase in tours has been substantial and then close to an 80% increase in repeat tours in the shop portfolio and those are people who are coming back for a second tour. So we're really feeling like things are turning.

Bryan Maher -- B. Riley FBR -- Analyst

Right. Thank you so much. That's all for me.

Jennifer F. Francis -- President and Chief Operating Officer

Thank you.

Operator

Thank you. Next question comes from Jason Idoine with RBC. Please go ahead.

Jason Idoine -- RBC -- Analyst

Hey, good morning, guys. I just wanted to ask about how you went about selecting the 108 properties that you're going to be transitioning. So based on your comments to Bryan's question sounds like those might have been some of the weaker operating properties. So I guess what gives you confidence that a new operator will be able to come in and improve results, and that those transitions won't ultimately be overly disruptive?

Jennifer F. Francis -- President and Chief Operating Officer

Yeah. Thanks for your question, Jason. You know, they're, I would say that they are. They're not weak communities, we've spent a good deal of time with Five Star talking about their strengths, they've obviously spent a long time or a lot of time thinking about where they can excel. And what the determination was, is they're better at managing larger communities that have residents who have a lower level of care. And I think that those, that determination plays out, when you look at the at the units that were true, the buildings that were transitioning there, they tend to be smaller, they tend to and I'm talking generalizations, but they tend to have residents who have require a higher level of care. And so it's, it became pretty obvious when we and Five Star and senior living Asset Management went through each asset by asset to determine which which Five Star would continue to manage and which we would transition over. Just based on on kind of that, that criteria, larger, independent, assisted living, independent and assisted living buildings are just Five Star's better at managing those.

Jason Idoine -- RBC -- Analyst

Yeah, OK. And then what would slow down those transitions? I mean, it seems like, I think previously, when you guys were transitioning to mouse ups, there were some delays with licensing switches. So just what are your thoughts on any potential like administrative to the lawyers that could be caused by COVID, or anything along those lines, like maybe slow down those those transitions?

Jennifer F. Francis -- President and Chief Operating Officer

Yeah, we've got a team of folks that have been working on that for some time. And, you know, these are managed communities, when we transitioned from a lease to manage relationship with Five Star when Five Star lease communities from us, they held the license. And when we transitioned, it took that year to transition over really because of the change, and who held the license. And now THC is licensed in all of these communities, because Five Star is our is our manager. So transitioning managing managers is much easier than transitioning from lease to managed, because we do not have to transition them the licenses.

So that should not hold us up at all. Because it's it's just not a requirement. I don't know that there's I mean, it's a lot of communities to transition. But we have a team both at Five Star and, and it's Senior Living asset management that are going to be focused on that transition. And as part of our interview process with operators, we spend a good deal of time talking about their transition expertise, and how they're going to do it. And it's part of what we're looking for in new operators is operators who have done this and are expert at it.

Jason Idoine -- RBC -- Analyst

Got it. Okay. And then my last question is, how did you guys think about the new management agreements, obviously weighing taking the incentive fee cap off and out of kind of a point where we're at a trough in the business, and then also not having to pay the termination fee and having a stake in, in fivestars business. So I guess, you know, what those puts and takes, how did you guys weigh those?

Jennifer F. Francis -- President and Chief Operating Officer

You know, there were a lot, a lot of puts in takes and so this was we spent a good deal of time coming up with the changes to the management agreement, you know, with, you know, the negotiation of, of any agreement there are gives and takes and, and we just you know, this is this is where we settled, and we think that both parties gained and both parties, you know, settled at some point but we're pretty happy. We do strongly believe that an incentive fee is important for we want our manager to be motivated to continue to to grow. NOI to grow EBITDA. And so that's, that's where the incentive fee comes into play. And so we think it's pretty important.

Jason Idoine -- RBC -- Analyst

Okay. Sorry. And then I do have one other one. So did you mention what the 2020 or the targeted EBITDA level was going to be? I think you did in your prepared remarks. But I would just be curious, I guess, how did you guys come to that number?

Jennifer F. Francis -- President and Chief Operating Officer

Yeah, it was it was based on budget. And the budget is, you know, the way the budget process works is the Senior Living asset management and fivestar work closely together on establishing a budget for the coming year. So in the late spring, early summer of last year, they met and talked about every community and so the target for the 2021 budget or the target EBITDA is about 100 million in the retained communities. Again, we don't think that that Five Star Well, what EBIT, I will come close to that number. And, you know, so I think we will not pay an incentive fee this year.

Jason Idoine -- RBC -- Analyst

Okay, thanks.

Jennifer F. Francis -- President and Chief Operating Officer

Thank you.

Operator

Next question comes from Jonathan Hughes with Raymond James. Please go ahead.

Jonathan Hughes -- Raymond James -- Analyst

Hi, there.

Jennifer F. Francis -- President and Chief Operating Officer

Hi.

Jonathan Hughes -- Raymond James -- Analyst

We seen some recent public the public m&a activity across the read space. And a few of those were scenarios where the target is a company that just hasn't worked or had structural headwinds, and the merger was a win win for both shareholder bases. So they look at DHC where the 10 year total return cager has been negative 10% versus to healthcare read average of positive seven. It seems like things just aren't working here and have been for a while. So Jennifer, you mentioned a focus on maximizing value in your your first prepared remarks. And I know the last year has been very difficult, but has the board or RMR explored all ways to maximize value at the DHC including a sale of the company, or at least announcement of a review of strategic alternatives and not just transitions and more capex investment.

Jennifer F. Francis -- President and Chief Operating Officer

I think the board weighs, has conversations and weighs all options on a regular basis, our focus is to stabilize our portfolio. And we feel, you know, obviously, our MLB Life Sciences portfolio is, is pretty strong. And in some instances, we put capital into those buildings to reposition them, we're really focused on stabilizing our senior living portfolio as a way to, to increase shareholder to maximize shareholder value. So that's, that's, that's our strategy.

Jonathan Hughes -- Raymond James -- Analyst

I mean, I, I hear the comment, but I mean, the same story and a why and life sides and mlbs has been negative for a couple times now. And we haven't seen that at any of the peers. So, you know, maybe, maybe this is a question for the board, you know, where's the accountability for the performance, and frankly underperformance of DHT over the past decade, I mean, every board member, with the exception of one has served for an average of 11 years, and is on another RMR managed report mean to shareholder to shareholders voice, this accountability concern to you and the board? And if so, what do you tell them?

Richard W. Siedel -- Chief Financial Officer and Treasurer

Jonathan, I, I just I want to I'm struggling a little bit with the 10 year period. I mean, if you look back, there have been a number of actions taken to try to be more shareholder friendly, and to enhance returns for our shareholders. The 10 year number is, you know, if you look back with a very different business 10 years ago, starting with, you know, in 2015, there was a significant restructuring in order to make RMR, the manager that was previously private, public and be more transparent, and we actually distributed those shares out to shareholders. And then, you know, obviously, the senior living business has changed since 10 years ago. So there was a significant restructuring, from leases to management contracts. And essentially, the entire industry did that.

Maybe we were a little late because again, there is a certain amount of related party transaction that we don't want to do something like that unless we absolutely have to because it could be disrupted shareholders COVID was not expected. And you know, we have repositioned the portfolio more toward medical office and life science. If you look at our more recent redevelopment activity, I mean, the team is hitting homeruns on that stuff. And again, if we've got Some long term leased assets that are finally rolling after you know a 15 year term, you're going to have some vacancy and we're going to reposition those portfolios. So if other peers have been out buying brand new buildings with 2% rent steps, it's different than what was in our portfolio but we are doing everything we can to maximize value in our portfolio.

Jonathan Hughes -- Raymond James -- Analyst

What is the breakup fee payable to RMR if they were to be terminated as manager of DHCP and a change control transaction?

Richard W. Siedel -- Chief Financial Officer and Treasurer

Again, we are focused on the business and moving forward, that stuff is disclosed in the SEC filings if you want to dig through it, but that is that is not what we're what we're focused on.

Jonathan Hughes -- Raymond James -- Analyst

I'll do some more digging. Thanks for the time.

Jennifer F. Francis -- President and Chief Operating Officer

Thank you.

Operator

Thank you. There are no further questions at this time. I would like to show the conference back over to Miss Francis for any closing remarks.

Jennifer F. Francis -- President and Chief Operating Officer

Thank you, and thank you for joining our call today. We look forward to seeing many of you at the upcoming week Navy 2021 investor conference. Operator, that concludes our call.

Operator

[Operator Closing Remarks]

Duration: 36 minutes

Call participants:

Michael Kodesch -- Director of Investor Relations

Jennifer F. Francis -- President and Chief Operating Officer

Richard W. Siedel -- Chief Financial Officer and Treasurer

Bryan Maher -- B. Riley FBR -- Analyst

Jason Idoine -- RBC -- Analyst

Jonathan Hughes -- Raymond James -- Analyst

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