IRMD - Earnings call transcript Q1 2019

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

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the IRADIMED Corporation First Quarter 2019 Financial Results Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded today, April 30, 2019, and contains time-sensitive information that is accurate only as of today. Earlier, IRADIMED released financial results for the first quarter 2019. press heading the at News the available earnings iradimed.com. of the under on copy release company's announcing is A their website the found at A also on press the sec.gov. X-K Securities to Form be copy Commission and can release and Exchange of furnished was at will next is website be the for broadcast the available days. the being replay a call over the on and This on of XX Internet live company's iradimed.com the call website President Executive call Susi, Chief will comments; and be company's of orders; as of IRADIMED's results Chris customer agenda will Executive Worldwide opening and discuss The today's to IRADIMED, Scott, the Roger Officer financial before Chief for call then up follows: Brent Vice Sales and present questions. Officer, opening Financial summarize finally, the will Johnson, Marketing, IRADIMED's President will

Some will information the of session furnished constitute meaning in Securities forward-looking XXXX. Litigation of today's of to the Act Reform Private within the be statements

results, the differ materially XXXX. Forward-looking IRADIMED factors. number may risk that results statements forward-looking for are future and performance, reminds results on those of you future from the plans expected events focused due company's a to statements include those and

relevant free SEC's company's of uncertainties call sec.gov. Susi? most risk risks of website, Officer may for the Mr. I like affect from filed Chief that be Roger to with the reports recent over For the obtained Susi, description section to CORPORATION. now which turn again President may IRADIMED of a Exchange and Executive business, would Commission, and the the see company's please and factor the the Securities

Roger Susi

$X.XX that reporting year. watermark XX.X% We're five have of net and diluted XXXX GAAP to share, I'd is than or year the quarter I quarter these increase high higher income past $X.X bookings earnings with performance in came last last income good in pleased of than XXX% considering when higher XX% which million approximately and you, note especially the quarter also bookings. very years. our share was was last an net very first morning. diluted like revenue any - higher pleasant net than first non-GAAP the results, new per year. over our today, $X.XX quarter first Thank in IRADIMED's per task

mentioned evidence well, of past, of I I As in all functional our are the results these areas are that. performing believe and

I a a the it to This of forward upon have the from quick and year, the building From maintaining patient monitoring quarter our continuation strength longer of momentum over last and progress system. regarding MRI review with XXXX we will and start Mark operations perspective, we term. was our for look CE made

As us announced monitor. the requiring in our you was place EC may documentation Certificate, we our to body that renewing on our before which additional January allows Mark CE recall, notified

selling into or I due safety on only our shipments fourth As is on concern, or This shipping XXXX call lapse not again, Marking. said no by countries. the to the in the countries and our effect EU there's devices quarter of are CE this to impacted today be held being and other any disposables of clear into

Mark. that Once in waited in resolution have shipments resolve the manner. to the them and resume happy documentation Additionally, EU to the of have to for into monitor this will in tremendous timely resolved, regulatory a working notified already we a customers with monitors and apply patiently immediately effort the this impact forward we After I the the team, the to additional by that renewal does our look submitted not field. patient am our matter report of located ability we are our to CE body, that

engineering efforts. product our to related development and Now

Progress adjustments. pump, and late I XXXX we in At continue and steady, device make this the detection to will year. on magnetic still continue to next-gen to and product calendar U.S. believe to pump is thereafter. expect on next-generation IV in be international without this into progress maintain our customers this ready customers time, soon project our We launch early I that release we the

As not a reminder, to the commercialization. accordingly, product not FDA seek magnetic a medical And clearance device. detection we to is are required prior

the financial to Now I'd outline review of XXXX. second like expectations our and our quarter for guidance full the for year

of $XX.X XXXX, share of maintain with year $X.XX. our GAAP to we million earnings earnings to to $XX.X full per guidance revenue share $X.XX $X.XX the to continue initial and $X.XX non-GAAP of For diluted expect per million and

expect to of per earnings share $X.XX diluted For of we XXXX, the second $X.XX. $X.X million GAAP to of non-GAAP $X.XX $X.XX per to earnings share revenue of quarter $X million, and

year includes Mark impact quarter impact full less year CE the which will and second of revenue Our just I mentioned, we guidance the X%. calendar by issue the negatively full than believe

on sales device. Additionally, magnetic revenue full detection includes our than the $X less year million new in guidance

Brent over the of orders and Now force. expanding I'll to a call for turn our discussion sales customer

Brent Johnson

Thank morning, you, and good Roger, everybody.

year and As our fourth booking first exceeded quarter was even Roger new his the quarter our great quarter which in booking, for year. strongest mentioned typically remarks, the another our the of is in quarter sales team

year focus only in orders. last hospital for the the the QX increased pumps, multi-pump drives our care the for the versus a IV increases bookings on tangible IV also On channels this of dual-pump results both we of are demand QX and areas pump MRI side, increase increases domestic with saw from shows the effort as and in increased These demand but not critical drives the well. orders strong how pumps of

and adopted expect care growth business. the this we fully see continued in team, strategy area of been our has sales to by Our critical

with another from had to quarter continue solid where share we market We MRI patient also our our competitors. monitor, take

sales team is to sales the with team monitor our we provide We core and more the international good have another we education we product, and MRI those opportunities Roger in expansion. issues QX, booking in of monitor, build the fully result that the performance to spoke about. face record expect to for in new the added had on increased sales opportunities up strong Our of for we're regulatory team patient new pipeline continuing to as XXXX. MRI quarter speed saw the even additional the with sales out hires the remainder made in levels of The

continue these Our shipment existing recommence engaged CE the fulfill We're supporting orders to and remain and distributors to EU-based partners. planning our active we product, and the with those renewed. from actively receive are these after orders distributors is certificate to

monitor with making side, in to Pacific a Asia On contributions Singapore-based our Middle world. sides business. We're we're with with IV director sales an East and the will of bundling opportunities, provide and new base strong to our both our and success build have area this the of patient pump our the seeing impact domestic strategy international personnel our and sales continue succeed great and new is continuing international already business to the in

between IV hospitals we world into really only and in make the provide patient to patient As transporting combined discussed, anything that as resonates our for really can product without product and to offering safety mobile offering our else enhanced the with company in a is patients the time-consuming workflow IRADIMED's pump sale, and having and monitor to by allows changeovers. market. customers we've the differentiate previously equipment key concept capability our with IRADIMED care multiple back truly system with a bundling and MRI differentiator is the This a

our added end before quarter, We and we to additional calendar for actively X the the better planned of marketplace. managers our number force the total put XX, first sales searching sales on the more During to expansions our penetrate in with continued domestic to and X the team, additional street there with bringing QX expansion more sales feet hires we're direct year.

actively X team. give for a application to also additional X continuing are support specialist clinical on We of our us total search to clinical

summarize results. Now I'll to the to it turn financial Chris over

Christopher Scott

I'll results morning. our on non-GAAP be Good a on basis well a as GAAP discussing as basis. financial

cash non-GAAP expense and excluded taxes is in are financial tax on considered Our providing for along items ongoing for as stock-based measures, Infrequent indicative property items financial these compensation the a cash nature income effects. provision income results tax the less normal non-GAAP related helpful provision be not Free our flow of used and thorough more performance. can these of from and taxes. of are operating of based their believe GAAP statements, We purchases operations flow for equipment. from our our with presentation the cash analysis exclude

page You measures of can these on GAAP today's the a last of the release. press nearest find non-GAAP measure to reconciliation

last year. the the in $X.X year. and ASP disposables and price compared in the approximately and first quarter when approximately we million And in was first the lastly, XX.X% reported quarter. the XXXX $X.X XX.X% and XXXX sales revenue respectively. was revenue prices million favorable expenses partially XXXX a to the million Geographically, for quarter million compared product was Revenue revenue higher current were year. last $X.X million $XX,XXX XXXX the of the for of commissions last to for monitor sales for On XXXX current XXXX for same revenue $XX,XXX XXXX revenue vital XXXX patient from in our the higher stated, sales to was XXXX by quarter. quarter was compared and was increase favorable average was for $XX,XXX million and to quarter first $X.X nearly for to $X.X higher $X.X I signs when quarter is higher amortization quarter $XX,XXX recognized million corporate from quarter partially selling a selling As decrease The payroll $X.X million The of of margin from devices last MRI-compatible quarters, increase the for to the to or for for due systems sales quarter. $X.X extended is compared unfavorable domestic to the XX.X% the expenses from during same by revenue for increase. higher IV same was our $X.X international of of quarter XX% inventory pumps XXXX the headcount, a $X.X for lower higher XXXX quarter quarter XXXX quarter or in the the to basis, for devices quarter. Gross And to our offset just quarter. The adjustments the year, of quarter. quarter Revenue taxes patient million mix offset sales compared same result operating XXXX to for about. signs the maintenance mix XXXX in vital in for million is from and the to million XXXX. dollar for current the for compared geographic $X first $X the our average product $X.X quarter the million million franchise from services contracts compared the Included spoke for million XX.X% is quarter $X.X $X.X first first expenses. percent revenue the overhead $X million million for margin due Operating ASP first approximately due revenue gross result ASP expenses costing monitoring quarter regulatory the The the increased last first compared approximately year. quarter of compared compared to

per for employee with tax non-GAAP income compared rate a compared first tax associated was quarter. first net negative for due primarily for to diluted period. basis, the net $X.XX rate a the stock share XX.X% is per quarter exercise the quarter $X.XX XX.X% the was year. share last for On $X.XX GAAP the XXXX tax effective The current the diluted effective for quarter income last quarter to quarter lower to On compared of basis, the options was current windfalls year. during $X.XX current the Our current incentive for to

partially months compared cash primarily For lower the provided inflows cash ended was the million period is of XX, of for the shipment the domestic due receivable end inflows three This revenue accounts near to was single XXXX. by to and offset The from result a income same decrease quarter. cash $XXX,XXX $X.X by March XXXX, operations a customer higher in net large items. from to deferred the

March questions. of of XX, million And million, ended our XXXX, call months $XX.X flow, cash had non-GAAP as now $X.X we X and measure, investment. I'll was turn and and the free XXXX for a $XXX,XXX the over March cash respectively. For XXXX, XX, Bridget?

Operator

Instructions]. [Operator

Our Solow first the CJS from line with comes Securities. question of Larry

Stefanos Crist

price. offset year that Do Sorry a you decline about was is stable mix? XX% Crist calling This by similar grew Larry. volume, but that. about to sales domestic Stefanos growth for be in 'XX X% Fiscal XXXX expect a in more X%, pump with in price

Christopher Scott

relates And away we part from XX%. the or mix our somewhere think to of one always in really the increases then pricing changes ASP one how around domestic next. far sell I to product period be from revenue ability - to next for more the we Well, from to part XX%. mean, additional expect that the for quarter the with ASP most that the course I optional move features And we've pumps the of our to seen, each most

Stefanos Crist

it. question. Got from still sales And QX? the be to Can of one suspension expect the in about that of about impact And issue end EU? - then do resolved more talk you temporary the more you by

Roger Susi

Roger. is This Yes.

We yes. we it just it information we As put very recently. to the quickly. - very they've that them committed to answer the to and required acting And together is question I off I on guess got said, was short your

think it's and good." by it weeks weeks month print X take we so the guys then might paper another that it gets for weeks And them that, the Europe. said or very or a distributed takes hear out quickly X all or actually So to - is these "Yes, it's in X before done, we time

Mark the applying as it when Europe, gave that day begin that So stuff a it. on place go. have preparing CE check we they we'll the the the that we soon and - it's the our be acceptable folks But here to based and hits shipments - information ports acceptable them hear to in other is passes as muster, import

we with back the point, we'll anticipate monitors January, QX, this Mark in at what announced back into completely CE So before end the shipping exactly we of restored. that our Europe be

Operator

Instructions]. [Operator

next with of Scott Our comes Roth question from Capital. the Henry line

Scott Henry

my QX, or perhaps is weak - which you seasonably guess, trends do quarter. sales are question some very QX just forward typically a strong in pump guess sales very pulled in think I general? starting looked strong is I into

Brent Johnson

Yes, Johnson. of one this Scott. to is QX still include even you to QX sales our from here remove a customers order, And large The This had to pay really, to salespeople that sales force and back did we order - speed an Brent more think continuing saw increase those we in I off, I is starting I'd our But QX. with large should domestically. their say, when in training. off of critical care new added strategy to coming or the and just and to go education pay evidence the increase really up - expansion

that more a So - opportunistic it and in I of of there's really in part it mean, just well. is typical, again, is believe And believe all is I quarter that, guess and some really seasonally big but as opportunities I a that sometimes - happened. and of area. that's our that's what of together growth are that I those some than to reasons continue that the

Scott Henry

from a appears it about business, that monitor performed the question OUS little issue? some on is The talk that versus U.S.? like U.S. decline about QX mean, a then can it I there - QX. maybe Marking QX? how How is bit And of sequentially you there's Great. some there business And the to Okay. is - declined the seasonality to as QX well. is CE sequentially

Brent Johnson

patient But category. year. it is the Invivo, our now always speaking team we very go typically a to experience little largest by at Again, was quarter for I bookings there. of don't quarter a the which is my quarter monitoring the Philips, QX for MRI seasonality back and running bookings. sales is on far strong generally, Yes. specifics it, per back to - give going there strongest

a So side. or those And international the booking the monitor. deliver our orders side, are I seasonality, catch solid again, on the to distributors performance sides, obviously, alluded the Marking. up still expect revenue it's from were the as that good, as get side and fact and European both CE the but to on that domestic soon we orders MRI somewhat we We international to those orders, continuing book patient hurt for

QX. effect on definitely an the revenue that was So in

Scott Henry

Okay. starting And more and in of to back-end more and when when then, lot guidance the expectation sort the at I QX be the Is selling look look wouldn't QX? loaded. for anything with your QX in it's we've QX there And monitors in of got for product, the I mean year to the that although I a it is significant? FMD books, imagine

Brent Johnson

it business. we is loaded increasing is not in side especially we sales it not we that the really believe increase when that a This is QX, the important, we the had increased see Yes I QX, do translate talked happening the QX somewhat. monitors, very QX domestic and throughout QX of in will just Again, that about the that's quarter, our see obviously up. to fact going see rising opportunities - and but to comes to the questions. going in patient large first to do I that into back-end be year. that MRI and both in in sales

that hopefully, again, answers So question. your

Christopher Scott

those to and just sales mean The of expansion on to we managers, we the We're track year about. growth folks maybe and add, running that last in just hired X XXX% and few I points all they're year, to this continue production new you to think Scott, early And sales today. hired kind up year. a our the from team, in continued expect give

then the mentioned into device. point. Union asked able And CE think you about Mark issue back European detection the I to cleaning up market. Roger magnetic that's - and So being the Two as one three, is ship

in is FMD. related $X there to quarter sales it's comments, the his million less As the fourth Roger - in of mentioned than

to X there points in summary just about maybe think So

Scott Henry

XX the sales? Is for or for the that quarter heard million first Okay. that first incorrectly. $X months Maybe I of

Roger Susi

It's be for to quarter. only last the sale to and going in million in sales expect good it for quarter, in that be $X about we

Scott Henry

Okay.

the since that's year? XX months in first not this So launch, that's

Christopher Scott

than $X in fourth million Less quarter this year. Yes. the of

Operator

showing the closing Susi for I'll over remarks. call I'm Roger further turn now not back questions. to Mr. any

Roger Susi

we Thank the with XXXX. you, operator. pleased about rest to participating in reporting you We excited thank and all to the forward call, and after I'm And quarter. these of results you second for back today's look

Christopher Scott

you. Thank

Operator

program. gentlemen, and the conclude this does Ladies

You may great now disconnect. Everyone, a have day.

IRadimed (IRMD) 1 May 192019 Q1 Earnings call transcript