IRMD - Earnings call transcript Q2 2019

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to IRadimed Corporation Second Quarter 2019 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded today, July 30, 2019, and contains time-sensitive information that is accurate only as of today.

Earlier, IRadimed released financial results for the second quarter 2019. A copy of this press release announcing the company's earnings is available under the heading News on their website at IRadimed.com. press Commission also can on at the Securities to be of sec.gov. Exchange and Form copy release furnished was the found A X-K and company's over is the of XX be website Internet broadcast days. call the will IRadimed.com, live on the This on a being call the for website available replay at and the next

Johnson, President will The financial the call Chief up Executive and Worldwide Roger Susi, to present comments; Marketing, customer agenda opening President will for Vice the Chief opening today Chris orders; will be Officer, IRadimed's then and Sales and company's questions. Brent of will before summarize of Scott, follows: IRadimed, Executive Financial as discuss results Officer IRadimed's finally,

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

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

and reports uncertainties with website of factor free at of and please recent relevant company's risks see affect SEC's Commission, Exchange section may may again be For a obtained most company's description the the Securities the risk the which from that the business, filed for sec.gov.

and I would begin. now Executive Officer Chief to President IRadimed like call of Sir, Susi, the to may turn Roger Corporation. you over

Roger Susi

second quarter. was start over report or very important non-GAAP per $X.X in exciting will last per will year. morning. am of is morning the was and review, quarterly good to addition and But $X.XX have and quarter operator pleased year, the over higher GAAP revenue the diluted net that performance income net This discuss. million, XX% increase $X.XX in review diluted brief first, income which topic we quarter and quarter our share you, a of share, additional second our to performance I increase last last Thank second XX% a year. second than operations to an I XX% a our was usual

bookings towards further become a Our headcount Overall, entire team volume continues strong larger and our add and proud Monitor solid contributor to sales very continue sales this our MRI we our to sales of on-target implement our remained making to a enhancements was quarter, team. strategy. me to as

serve new Officer, business role announced release, announced executive Before as a Chief at I'd we also [ph], Technology experience. yesterday's a In like few He and Leslie, spend discussing significant we In McDonnell yesterday found discussing operations, to medical that confident I a we moments the am that Executive leadership retaining Medtronic. as afternoon. Healthcare and Chief Chairman XM elected my leadership to taking as Board. Leslie the with the Natis was device have Officer, has held while role positions of highly change

to lead the Board During us with the the is believe and beyond. perfect strong industry. phase IRadimed and of impressed experiences growth deep through all I that her person device medical aspects and and her understanding strategic vision, search The in she process, next Leslie

at announced, Chief roles Officer. Technology with newly As I on taking is essentially will one have this of a created role This I move be played founding. as since the it's IRadimed

to that propelling engaged that Chairman, long-term my company. our product and in of remain role able aimed I new I -- I some with able at dedicate highly solely all as products IRadimed Continuing Leslie achieving quarters now towards nearly intend being to development new my you effort in million growth to $XXX six that with announced be are ago. focus on assure the I will revenue the place, goal including our goals, on will now However, in development

update. business the to on Now

continue XX, U.K. areas XXXX well. body, were like announcement functional by From completed a when their that a acceptable requiring UL resulting XXXX to infusion patient all EC temporary evaluation system July suspended the IV non-conforming. Union our per and notification, patient the of and from recent Upon our system our UL we we of of to certificates January technical notified CE into in system. perspective, signs related notified technical temporary extended be excluded monitoring fiery signs certificate EC of regulatory remind compatible perform immediately very not a the Mark. that that our you included XXXX system aspects markets I'd pump shipments review was of These our guidance as reporting XXXX our vital newly vital All tubing patient vital compatible issued this MRI monitoring clinical the Concurrently, not could XXXX. compatible European receiving MRI MRI through issued sets, signs monitoring

monitoring notified; addressing news X, associated are compatible patient four July notified year the our the XXXX decision MR they process system, of related their to for it's waiting as transfer and on notified during have the transferred system Brexit review and But recently sets with of operations Polish infusion a and tubing transferring and a with us certificate the EC polish our body the non-conforming as technical IV result the customers pump EC an to XXXX, re-issued notified process that would UL and sets signs the polish began all notified term. MRI [ph], compatible process certificates the UL cease a of of UL to for body we firm customers vital the be additional a

we transfers in and the have digesting mitigate EC certificates with Though time EU. within the end associated steps taken to before is all polish risk renewed the supply of busy body of the August UL, this notified the receive we placing time mean of processing expect adequate of inventory to from an administrative extremely to

compatible decision patient notified Italian our a we to MRI notified engaged XXXX vital causes to body body new a monitoring Concurrent device notified announcement to had of monitoring recertify operations cease as certification XXXX for system. signs system. to an UL our us body medical UL seek

monitoring We resume the and shipments quarter the fourth fiscal firm of complete Italian of this markets working beginning in our recertification to XXXX. process the are with to mark our and requiring actively all CE to the expect

but As EU are on shipments call, past into that the already CE resume being monitor to by our only I the is said have ability countries shipments orders. to continued renewal many place cases lapse safety in have concerns that and held does recertified of immediately in this located impact we XXXX not were for marked waited apply the XXXX the is Once to any due in the the to resolution the only customers not of patient EU of will patiently monitors this not in marking, field. and CE

perspective, pump in development planned next IV considering of U.S soon to to as towards pump From customers focus we continue prove to generation customers a ability release making solely maintain international This project and the expect on our development the my still research progress XXXX I NextGen conservative without and new thereafter. adjustment. may and timeline products.

we detection to remain Regarding device, committed the and fourth-quarter plan SMD, launch. magnetic late initial we progress to make steady our continue XXXX for device, call

XXXX. quarter financial our the the Finally full third guidance moving for and year to

For million. of expect to the million and continue year revenue maintain $XX.X original to $XX.X full our XXXX, guidance we

$X.XX GAAP $X.XX share We non-GAAP and $X.XX our earnings of of $X.XX. earnings guidance to diluted per This are per share to $X.XX earnings of diluted year report diluted to full and $X.XX. revising $X.XX per $X.XX GAAP diluted compared expect earnings per previous of guidance share to share our earnings and now to non-GAAP to of

impact As the stated earnings by in associate earnings our with CEO release by year this to full diluted GAAP new our $X.XX share. share $X.XX non-GAAP per expected morning, cost negatively per and who are diluted

our XX GAAP to expect earnings $X.XX earnings $X.XX. quarter per earnings to million negatively impact $X.X to non-GAAP CEO expected third new GAAP $X.XX. are to per Again third of per revenue million. and share $X.XX share For of associated order the costs $X.XX by diluted diluted XXXX, we of with

We to these earnings non-GAAP diluted costs. related impact expect an insignificant and

a the Brett. Brent to orders sales like over in I'd expanding force. Now of to our call customer our turn for discussion

Brent Johnson

everyone. and Roger good morning you, Thank

Our our in an efforts sales and increase execution sales levels of these our quarters. were total orders we This and expansion orders force growth sales strong in in future overall with current to continue second over XX%. expect strategies show for support quarter orders year-over-year worldwide strong

the in both On and we domestic orders multi-pump pumps side, saw in two dual-pump continued IV of bookings and orders. strength

us Our drive increased strategy that for the the the critical the helps how for continue increased pump multiple targeting the show to of medications care hospital demand drives this to areas patients and critical these purchases require. IV handle channels pump MRI of demand effort

of number in patient sales our of critical MRI see IV monitor in need this with we this the great pipeline the business team strong of Along our we strategy managers grow the continues for results as for expertise The the and expansion to number delivery largest with in which of the second organizations deals we've sales compliant this monitor a We've MRI seen increase, most systems contract increase and year. of some of made on integrated patient delivered getting domestic area head-to-head against have the is MRI growth expertise, the the we with Our also the has in nation. monitoring field. gain competition. purchasing delivering the strides product pump opportunities we deployed group half better to health sales in expect care continued

with our the are these on competitor equal of us are give to foot. Many agreements important an but for opportunity dual source they compete the business agreements because

just MRI and will for confident with in to second to nation the in from that that announce beginning We're are of We agreement monitors happy QX. we of increases these expect monitoring source in to developments large one MRI the half sole monitoring positive that XXXX. in a see agreement largest orders the sales translate IDN new we signed have

continuing solid done Roger Our the international MRI active issues of engaged the another to patient that the our with and distributors around monitor quarter spoke product. about. CE a team keeping team's for great with The EU-based made regulatory marks some just contribution even of the job our

regulatory device. and first quarter, our at on of we orders we of making intend receive for immediately with the upon continue progress we're our end partners While from I that reported efforts these monitor as our to receiving EU the recertification shipping

two the with marketplace. direct our expansion calendar the territories more continue plan force end put our added two sales additional domestic our total and the of sales second territories streets to penetrate there better the bringing U.S to number sales We feet hires quarter, sales the with on we XX to before During team, more year.

We focus new with this managers team on of lot of a learning a and our directors facilitate strong to area continue and sales accelerate training help our to efforts providing process.

deliver to additional translating into growth the continue us with Our additional in that the hires quarters. current we sales increased our these sales targeted strategy demonstrated future success need this gives offering sales product in confidence will

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

Christopher Scott

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

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

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

revenue the than isolated all product second to line Roger increase items. year. a increased driven not over increases but This was single greater stated, last XX% across by quarter As XX.X%

compared million XX.X% XXXX a $X.X second XXXX the was and to our for from $X.X in increase. devices million sales disposables million $X.X quarter in increase. increase. was million XX.X% XX.X% from for compared current compared quarter from for XXXX of XXXX Revenue is quarter, Included quarter quarter, for quarter, $X.X $X.X $X.X to monitor for of services the revenue XXXX Revenue the million for devices a a million to the current the the

impacted favorable selling geographic last year. the was is of was average The which the to $X.X same quarter, year. for last revenue quarter pumps quarter. million ASP amortization second $XX,XXX to a XX.X% XXXX prior compared of the the the the price quarter XX.X% the The year quarter, to approximately when the during quarter. were $X.X in second maintenance XXXX from to million and approximately mix for result $X.X our revenue increase over a quarter compared XXXX from current second extended was again That's [ph] quarter. sales, $XX,XXX lastly, international million $X.X recognizing compared IV increase. of compared And product $XXX,XXX for increase for XXXX revenue contracts Mark CE a million Revenue the the by for was approximately Domestic sales

the and monitoring XXXX was is for second geographic year. The due the both and periods. XXXX which quarter system $XX,XXX a same for last million increasing XX.X% of in were sales is of ASP million Operating XXXX ASP the expenses approximately current the quarter, our margin when quarter patient quarter. vital approximately for to decrease and for favorable the mix for overhead $XX,XXX is XX.X% signs and percent revenue variances. the margin compared unfavorable respectively, XX.X% quarters XXXX gross to quarter. Gross an was for for result $X XXXX The $X

professional their expenses and payroll increased to basis, higher commissions, own sales dollar expenses expenses. the On due operating

approximately diluted current increased rate effective current was year. extra a number the On compared XXXX is compared current the tax $X.XX lower income related effective tax diluted quarter, for second GAAP the the quarter a was shares income compared options $X.XX share period. to with to for to GAAP stock that to the dilutive income. for last The XXXX quarter. year quarter, on Our primarily And for the lower for incentive rate employee windfalls quarter quarter intangible XX.X% the net over basis, per offset prior shares deduction for during share the of for basis, by sighs XX.X% XXXX of order per was current foreign-derived $X.XX to partially $X.XX tax the associated due second by quarter. XXX,XXX The non the

operations from higher provided taxes. cash and ended This at income $X.X six to consistent by primarily outflows For receivable result the the net lower months by inflows June higher million. XXXX offset cash income XX, XXXX, and of accounts was related is

and June three And million XX, non-GAAP $XX.X measure the was XX, as had respectively. For million months flow and and investments. a June XXXX, cash our of $X.X we XXXX ended free cash million $X.X of XXXX,

call now I'll turn Operator? over the for questions.

Roger Susi

like today's Thank in IRadimed. of continued you all I'd call. for you, operator. thank your participating support to And for

on assure in third believe on I calls found a IRadimed's not have again I I Until this to a While intend a McDonnell involvement look her would interact basis, participate my to of leader By her. with we believe our We do forward such everyone this with And CEO. like in and Leslie reporting welcome by devices IRadimed me will experienced to highly only can I what increasing for year with her to development to we agree leader as have chance of then, you the family. care. you installing to taking at extend in activities. with once innovative patient you future later regular you the that, quarter back I love results. and had a will highly competent of return continued purposes role, medical This once to be new and facilitated warm

Operator

thank participation and conference. your you for and gentlemen, today's Ladies

now disconnect. wonderful have may Everyone day. You a

IRadimed (IRMD) 30 Jul 192019 Q2 Earnings call transcript