NEPH - Earnings call 4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Nephros Inc. Fourth Quarter 2023 Financial Results Conference Call.

[Operator Instructions]

Please note, this event is being recorded. I would now like to turn the conference over to Kirin Smith. ahead. go Please

Kirin Smith

This you everyone. and Smith PCG with Year Good for is participating Thank all Conference Quarter in Advisory. XXXX afternoon, Call. Kirin Nephros' Fiscal Fourth

its I management will review forward-looking may comments company's begin, ability company's not of cost but are of Before and results cause its and and caution that Exchange health and and results results other economic the its new Nephros' contain impact like the encourage of care effectively limited services success and of conference market business specific by this the existing and of and Commission, regulatory filings Nephros. forms statements providers, and and the of hospitals that include, products competitive XX-K Securities and rate successfully, limitation, I identify in we call pandemic the factors. made to and service would offerings, effect operations sell the during future Nephros' timely the on regarding materially to to with requirements affect factors may Nephros' differ without efforts products that actual other to described adoption commercialization to, from to by XX-Q including, you the COVID-XX those the statements. Factors forward-looking

only the call X, is by or any The date live update contains March as reflect this content date events call of revise today, as of conference undertakes Company XXXX. circumstances of the accurate no conference to information law. that required time-sensitive the call obligation statements or after except this of to

Nephros' ahead. turn Chief the would Banks. Officer, and I President Robert, Executive please like call over Robert to to go now

Robert Banks

amazing the good we you, an Quarter finished to I'm XXXX. CEO the XX% Fourth for Leadership Today, afternoon, year cash and reported we with very we welcomed welcome year-over-year. growth Nephros, and you Thank It results. the are pleased Year a were was the the Full we at all to of year for and the new call. flow Results We proud and very revenue Kirin, positive and CFO impressive very full Executive for levels, XXXX, everyone. of

consistently Nephros improvement be commitment to to serve XX/X of time with the any supply and development to I'd level customers hard quality and products, to emergency with to new worked has partnership but sales our the on and drive week. we delivery expansion series potential, of a Nephros needs now operational transformative chain, the always meet thank day of great our realizing like of these results. work force, and growth hard for their the are team a Through

of some highlights for share the me market Let moments.

to several on XXXX saw capitalized execution in our to new strategically them leading deliver technology strongest develop they as partners. relationships our of distributor more only the levels a with In customer we markets. of turn, variety their of growth record utilize First, agreements infrastructures throughout respective

to conversion penetrate relationships quickly. partners Of who decision makers opportunities of with very us offered The market services are have an key sales. large of the important gateway particular note, strong new provide segments the water-related

which targeted acute product but good, space. This our losses. We footprint. growth, challenge areas on great. storage identified inefficient issues which our resolved then off-site Second, growth made limitations growing is the in of significant such resulted our contributed within profitably looked operations at exceeding One several and area was inventory an improvement more is to was for

this because new simultaneously move, the in operational growth with team I us QX. consolidate response, solid while we the step sites, would much we expanding space This a towards commend like opened warehouse a huge numbers. In while excellence larger image. new achieving our in allowed to facility overall accomplished to

DNA of elite the it easy, demonstrated small wasn't team. Although it our commitment inherent limited in the strength and

guidance physical I XXX microbial ASHRAE last to standard This third from August The new along hazards the Nephros' stringent has point guidelines of of new spurred information is solutions of greater already year. are highlight and is pathogen, technology the demand more not of for available. the the these chemical this as regarding addressed like publication with required release litigation, widely hazards. packages, The that would multiple waterborne,

recommendation for a high FDA filters year medical departments. the considered which clearance the line sales, Class operations infection The quality, growth product guidance. in is the in II our detailed Nephros, of control our of our of to This is a performance be result infection satisfies great the XXX(k) marketing control engineering, opportunity throughout exact devices, in given truly and

We with $X.X finished XX% in impressive reached year year growth sales This fourth prior million up where quarter with over million period revenue. in XX% Nephros the an revenue, the same XXXX the growth revenue. $XX.X throughout total over in the

with section of this accomplished cover Judy ahead. please an impressive which in next financial we call. Judy, As this EBITDA, my will Krandel improvement go in CFO,

Judy Krandel

X,XXX continuing $XX.X December to XXXX, in to as the and very forward have XXXX. from I'm XX, Nephros as increase and as XX% fourth to the pleased revenue Robert. the financial improved a And net quarter customer revenue loss a net look quarter. as will business. help to last to $X.X to closer XXXX. December Nephros' X,XXX sites operations and compared same at in reported over for compared now XX, was We of for performance million, look company of terrific a September corresponding of year. XX, $XXX,XXX period fourth provide Thanks, XX% in the quarter Net XXXX XXXX, build I year joined $XXX,XXX were X,XXX full period million. Active up fast-growing the of

$X.X the to for loss of the a year full continuing a the million of versus continuing $XXX,XXX compared XXXX, operations during in $X.X operations million XXXX. same For of loss $XX,XXX from from quarter improved loss Adjusted a XXXX. EBITDA net was loss period to in

percentage a improvement full margins loss of year of XX% XXXX. compared the points. huge $XX,XXX fourth XXXX, to from X the with XX% in of increased quarter EBITDA $X.X quarter continuing also Gross of with loss a For versus in an the operations XXXX, a million in adjusted improvement marked

increased year significantly For XXXX, expenses $XXX,XXX for to percentage the full point quarter $XXX,XXX quarter margins XX improvement XXXX, versus XX% compared in from development to and a the same the the Research in for were prior year. XX% gross XXXX.

and For XXXX development $XXX,XXX in the in full XXXX, in year a research development SRP our versus expenses prior million expenses wind related SRP to R&D $X.X research the lower and expense. reduction year. were due down the business and consequently, of were

to $X.X Sales, general and were quarter $X.X for period the the expenses compared administrative corresponding million million in in XXXX.

other $X.X expenses $XXX,XXX. This activities. The quarter year. million of due million for respectively. year XXXX sales was of and cash ongoing XXXX, general $XX,XXX compared the versus from of million sales, a were $X.X in prior full was Net the XXXX quarter, the the full for an were operations revenue-generating the and net $X.X in expansion of million administrative operating for used by in XXXX in XXXX, net provided used year of full an full force in year, used the the improvement the $X.X the $XXX,XXX cash activities year is quarter For operating in to fourth $XXX,XXX increase primarily increase cash our activities expenses and fourth of and to

September XX, XX, as and XXXX. of as cash on XX, million $X.X XXXX, balance December compared December was to $X.X Our XXXX, million of $X.X million

We today's of release to the its income about more continue adjusted debt-free. or and refer press GAAP to EBITDA Please for to reconciliation details be net loss. calculation

days. the which information coming Form will be on found our XX-K, results Additional we file about can in in filing our

I turn ahead. remarks. will now the closing go back Robert to for call some Robert, please

Robert Banks

joining everyone, this to partners journey us continued This of our results. have our wonderful and thanks, specifically the and I'd Nephros. Thank remained you, presentation and support and contributed Nephros to on Judy, formal concludes for who your remarks. customers thank employees, with our these like

questions. We the audience. Operator, will from open take for the please now questions call

Operator

[Operator Instructions]

with first today comes Maxim Sherwood The from Group. Nick question

Nicholas Sherwood

is, you question Can an new regulations? seen pipeline increase with have in with you first the changes your ASHRAE ASHRAE? deal any pipeline deal in quantify My

Robert Banks

love a it's and comment, question, great Look, comment on Yes. great that. I'd to

especially opportunities a the the XXX in sheer time number of through we we when the Nephros coming guidance difference, the pipeline frame sales when to talk and a ASHRAE deal around and released. team, was definitely see So about mid-August just

date, the earlier. best themselves this understand lot what what a means, education, mitigating and of of trying of to kind been to how people the to give comply I to chance it microbial discussed there's will that Mainly against it take packaging

how in So up various an regard, their really facilities. protect and stepping can educator that they letting Nephros being and and consultants has know been

uses. And As a of better, that do the that teach to results perspective into result, from can translate we customer I inquiries how see will also expect the often to quotes. in then you

to it the So activity answer I've that. and as the comply to driven continue industry drive that what expect been was the pleased with that's to with Does question? we quite

Nicholas Sherwood

seen Have first in answer. first first was a quarter or that Yes, you the of the or half size any question. the And significant this of one perfect X/X guess year? trends quarter or either the penetration then fourth in customer in order I more

Robert Banks

more -- a what about of you're you deal for the from say size number Can give little or... transactions looking or

Nicholas Sherwood

you order seeing average just Are in your size I would customers? any specific guess, increases from be that?

Robert Banks

far tend too does the order be lumpy. as seen as a size. much business little Haven't differences to This

pattern, right need seen than immediate change there's responses, that, been be lot they when order Other have when a fairly a to significant But larger of in replaced. based and consistent emergency there's size. they long how and be peaks troughs on filters periods in responses, a So tend shipped to things away. last you

the answers that think I yes, So question.

Nicholas Sherwood

provide And how Donastar Awesome. you over on us your that went last question. update quarter? with fourth the just Can any then my agreement and

Robert Banks

wasn't market this expected with take of point customers have at some agreement to penetrate. time. Many multiyear, the in made existing The in inventory. space time changes So -- commercial or no the does was and general, Donastar

go. great of look take some just to up drive did which We does shelf the a The everything on opportunities, time. I to So have needed and changing move, to to number forward we is ramping over facility Nephros has ready now really them change. new a Donastar execute continuing

it big lot I as corporations of swapping they to before take a a company. the does expire impact The to some out wait move things mentioned for before, to

commercial good too market So to would this expect report exciting in Nothing to seeing I the I as the there. along so. that about accelerate time, chugging to just future. forward do momentum that at look

Operator

[Operator Instructions]

no our for Thank further As attending are concludes conference the questions presentation. question-and-answer this today's time, concludes at session there and call. you this

now may You disconnect.

Nephros (NEPH) 7 Mar 242023 Q4 Earnings call transcript