IRMD - Earnings call transcript Q2 2021

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Operator

Welcome to the IRadimed Corporation Second Quarter 2021 Financial Results Conference Call. Currently, all participants are in a listen-only mode. And at the end of the call, we’ll conduct the question-and-answer session.

As a reminder, this call is being reported today, July 30, 2021, and contains time-sensitive information that is accurate only as of today. Earlier, IRadimed released financial results for the second quarter 2021. press heading the at News this 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

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

forward-looking focused the that due and you expected of number those are statements to and the results. plans future performance, future events results Forward-looking a not company’s statements include factors. on these risk future may reminds results, differ IRadimed may from materially

maybe Securities description Roger obtained to over please most a business, company’s Corporation. free call of Susi, see For at uncertainties website and Chief the reports risks the turn now SEC’s to I recent affect filed Mr. the Exchange the of would that Factors President the may the Officer sec.gov. of like the and and section company’s Commission, Risk begin. Executive IRadimed which please again Susi, relevant from for with

Roger Susi

over earnings Thank XXXX. today. was healthy revenue feel a you, you Once COVID-induced thank to QX a and growth very operator, participating reached that and showing over of further low of what we XXXX very growth good all again, significant happy for the morning, and in and also quarter, report I QX am good

customers a less though in moment. optimal continues around specifically show pace purchasing, had full-year appears revenue can to the chain, Despite new some the have be of themselves, previous near-constant Chris around team headwinds revenue sure will by what some record to changes appear supply on for our just pre-COVID hearing environment. issue XXXX, issues It from During be everyone has the half is that of was provide that hospital worked with created diligently level. example, first it which I'm growth in lessening, to again color which lately. COVID presented been of IRadimed seems our high what pandemic, level, than a XXXX the our

We with growing are patient leading way. seeing our demand for products our the monitor

created forward, look of are we FMD of IRadimed accelerated about for our launch next-generation IV recent commercialization we future early our the potential and As next growth year. and of the by optimistic revenue pump and the the earnings expected

second last reported over million, Regarding and financial XXXX of we this the our quarter results, revenues year second than in higher the than quarter first quarter higher $X.X which year. X.X% of XX% comes

QX year. Our share non-GAAP to per $X.XX per share earnings in compared last $X.XX were

to happy very I'm ability our mentioned, just these I growing As results in ever-evolving with continue a seemingly and environment.

Another not give is very quarter exceed also watermark and forecast, remained for confidence impressive for allowed that company. only internal for our high bookings but visibility us to a set This us the pump. customers. positive and the more the new the year trend we continue as into launch remain year the IV the expect the of gain for we to back of going to half anticipated our strong half access and to second next-generation our Further, of bookings

few guidance, we moments. Chris in these which will For reestablished review financial have a reasons, just

we entire Since units. received for sales order interest we reported just the had group. our first to the this detection to team the and product the recently our and when product our leaders of device, last has Regarding then, very three now quarter, released ferromagnetic earlier in we been area sales positive month

opportunities. for our the expect growing with develop additional a and shown number more device team quick of We bookings interest are this time encouraged to by in sales

to like as the has Chief to I'd Operating Officer. recently operational Scott, expanded Chris? over turn duties CFO, our accepted Chris call the who Now,

Chris Scott

and Roger, everyone. you, morning, good Thank

regulatory status application next-generation with XXX(k) start I'll of for First, our the our IV pump.

or have FDA, able and to benefits frequent year. it in phase we believe respond begun a come on of continue in with more to both their FDA. traditional clearance could believe this interactions, frequently phase past. the than we've as we We a review more the as of are the IRadimed this process December of where as the communication to Based recent that We comments completed review early highly process year line next communication review interactive and early opens are our

we of lead-times hinted This shortages. chain, were sourcing of costs, amount our we certain managing in increasing an difficulty seeing Regarding to, in global we Roger trend continue higher energy supply and to through materials remains and noted that quarter last put stretching these as some parks.

challenges, despite impact a materials. to source However, these our we ability yet not experienced have significant on

as quarter, To-date, see significant vendors. our to in size to of continue mitigate increasing XX%, been without greater We and attempt impact as an Also material well from XX% mentioned of are to we risk by extended cost to ranging we cost supply of as our in to and tariffs orders increases as approximately we margin. disruptions chains. as last delays the global inventory digest able building these enforcement high increases typically a have

to experienced of have any not we exerting production to energy increasing this are schedules in our amount area, date. While we changes an

I'll Now, for our review the financials quarter.

past, as basis. As on discussing results basis a I'll well be a GAAP in the non-GAAP as these on

measures find release. a operating of in earnings non-GAAP can this You morning's our description

of year our by the You a in COVID-XX. the today's last of measure QX release. business was of please find to Also that measures can also in last these beginning reconciliation non-GAAP mind nearest keep negatively impacted page GAAP on

downs $X.X and of treated ups experienced -- non-GAAP QX the pandemic. adjusted quarter last revenue second growth strong expenses our related have former year, as recognized have by to and we in to earnings million during sequential last Additionally G&A to Since business we year, global the we CEO. conducting the continuing

$X.X year. million, sequential last revenue a this reported, quarter revenue we compared are to in we time quarter first As At increase XX.X% of in to the of second full-year quarter fourth the rate represents this This the also growth, morning X.X% show an second year. revenue period. row over XXXX was XXXX pre-pandemic quarter growth with increase the of on track this over growth a

our revenue this To for to for increased to was revenue by increase in second average the approximately accounted the the system decrease relates addition second approximately quarter domestic Overall, quarter the sales for current gives favorable quarter, the to to to monitoring primarily due relates inventory was monitor price pump IV $X driven XX% infusion the a quarter more unit approximately signs ASP second $X.X for the higher In $XX,XXX, XX% optional our from and we maintenance of due driven of into primarily is IV approximately while mix, finally contracts higher current offset at quarter, year the to pump driven the cost reiterate million The global on periods. continued the IV of as from during year. second increase The favorable for Revenue which features in price XX.X% a XXXX favorable we unfavorable approximately our international confidence $X.X by quarter XX.X% XX.X% revenue domestic backlog, gross product XX.X% growth, revenue. XX.X% quarter reported consistent to quarter, quarter. to forward the increased margin XXXX, vital compared revenue during to IV XX.X% from MRI-compatible margin was revenue going Revenue and sales of same was during for customers the pump million million $XX,XXX domestic in $XX,XXX $X.X about in year. patient to of half the pressure sales This The to Device XXXX during our comments average revenue for quarter. to pump supply to we was a of This prior sales and year. domestic in result increased system This million increase And already-elevated for Gross last going sequential in added gross decreased was selling sales. domestic revenue the lower sales percent increase compared by sales million. adjustments by end us both overhead geographic for mix of expect monitor XX% disposables a the sales, while XX.X% sets. and the increase international The the our mix increase second reserve $X.X and selling XXXX higher compared purchased at product higher to variances. increases. quarter. for of from in was compared XXXX. unit margin and sales. partially the service revenue $XX,XXX period chain, XXXX

to last higher dollar decrease related expenses gross were $X.X be with second to incurred impact second or cash expenses in continue the offset and quarter. activity This the believe of and or sales partially our the is quarter revenue the due consistent we was margins sales very that a will year However, former XXX% of commissions resulting primarily separation year. compared Operating current stock historical incurred last are compensation decrease basis, by revenue, for ranges. limited the On to this of quarter during to our expenses X.X% XX.X% during million CEO.

for quarter. year. quarter, compared quarter, XX, quarter, a This non-GAAP higher and net year a tax As $X.XX quarter recognized Tax same second $X this current flow income allowed in years $XXX,XXX for million the in adjusted last Cash for $X.XX loss $X.XX for last quarter June for tax a to a compared operations a GAAP was last carry compared the ended back a months basis, We approximately $XXX,XXX quarter expense compared the the to approximately share, current $X.X of share million NOLs result, to prior income to six benefit $X.X XXXX from from million operations current the was of loss the to XXXX. million CARES the the grew due $X.XX in to the $X.X the to for was to XXXX, Cuts per year. of taxable On the benefit to compared diluted Act. XXXX period is per Act income and Jobs that for taken second the income us from increase of basis, quarter. On

was purchases. deferred outflows impacted from operations cash by expenses and provided and positively cash period, by for XXXX revenue by prepaid inflows cash negatively the impacted For inventory

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

Roger orders confidence visibility the in of strength the and mentioned, has us remaining XXXX. given portion of As customer

revenue are QX reason that earnings and guidance. full-year For we and providing

GAAP quarter, to million, to and of third we of $X.XX earnings $X.XX. $XX.X expect earnings $X.XX to the For $XX.X $X.XX revenue million of non-GAAP

million, $XX.X to to For XXXX, the million we earnings non-GAAP revenue Norma? and over call earnings to of full-year with of $X.XX. $X.XX the expect that, $X.XX GAAP And for $XX of $X.XX turn I'll questions.

Operator

question with [Operator Instructions] Henry first comes Capital. ROTH Scott Our from

line open. Your is

Scott Henry

on the you. morning. Chris. results Thank and role Good the Congratulations as expanded well,

Just a questions. couple of

quarter; robust. particularly in Should First, a rest the and year of front looking pump that more next-generation think sales we clearly the in should pump to expect sales little still outperformance at How coming? monitor-driven of that? continue about than were the were although being with trends monitor perhaps weaker, the we strong those pump-driven,

Chris Scott

the our the that monitor-heavy first do at sales second in second in half. normalization We IV and order quarter going of we our normalization see book pump the we'll But think I expectation business. that, some were half. when see of Scott, a and forward, is quarter, we some pump take look plan this the

Scott Henry

that And on thoughts we to going how the what's line, revert And about the or disposables to should Any and trend should there? revenue services back jumped in Okay. significantly QX. pretty expect that? on then, we think up

Chris Scott

the sales, the that, higher more door disposables strong continue seeing monitor more the in related seeing we're that is wrapped as line roll also that grow, for well. be line business up -- to continues service disposables going set remember us. is to now disposables as are but viewpoint Our our to disposables monitor. item, We're and out to and IV And

continued strength expect we line on So, that item.

Scott Henry

think guess, you three the And it how for had mentioned for initial maybe remind you or Great. we will Could adopters, FMD. think lower ordered me, that what I should the unit? the the out I you is price start per price And then, Okay. about units point?

Roger Susi

X%. take that have a I units I’ll Well, be It's of may those discount X% Yes, or small think much. one. not about

up those to were we pretty three, to ways list couple adds the targeting, they are of close you roll But at that about price that which it in So, there's the of configuration can configuration, out. pricing $XX,XXX. particular a

Scott Henry

Okay. Great. Thank And gross you margins. for the then, final question color, Roger.

the little pretty XQ us we did a -- high a I it think, still little Chris, you've years, but relative color, versus downtick to see is in of given lot XQ. a past

saying to way quarters you're want Is little more right but and of of I that? think couple of should historical just what I the to we lower, reflective see think, is still should XQ we within perhaps next interpret that bit what and confirm a maybe is, in range. probably the

Chris Scott

forward, when one-off. I we we think expect go

Going forward and higher gross with expect QX we QX. margins QX, than

I year. we expect So But high past, -- see gross the see mines, to there, you our going we've largely you output XX.X%. margins on this seen in won’t based revenue. think don't something volumes, XX%, that won’t due growth see, in higher you're to like higher as the as

I in to line that's more like those said You'll something see XX% with lines. along somewhere ranges those mid-XX% historical the something in

Scott Henry

it Okay. questions. That you for the Great. helpful. me. That’s should taking for Thank do

Chris Scott

Scott. Thanks,

Roger Susi

Thanks, Scott.

Operator

you. Thank

Our question Singular with Research. Lisa from next Springer comes

Your line is open.

Lisa Springer

on Congratulations strong quarter. you. the Thank

Chris Scott

Thanks, Lisa.

Roger Susi

Thanks.

Lisa Springer

question. a ASP of quarter? seeing have you in in are I the early What terms third

Chris Scott

Lisa, I that know we would on that. any comments make don't

I mix. know, the ASP geographic is largely you think, reflective sales as of

where are we're this the in that quarter know for I on heavy quarter. a position right end see we will up extent the to to higher we we ASPs. So current now ASPs for -- that think domestic, don't comment

Lisa Springer

Okay. Well, Thank that’s you. helpful.

Operator

remarks. for the Thank turn you. back to I'll any call Mr. over Susi closing

Roger Susi

face Thank and everyone grow these of be by shown you. pleased I'm the the the ability I of uncertainty We've IRadimed, team. good proud to which continue produced work in entire of the at results. to

ever. next-gen With the months. the of on you and we sales the again as pump strong three Thank are the first FMD, we forward bookings are horizon optimistic as seeing, we IRadimed's in speaking about and look with our about to you future

Operator

today's conference Thank concludes gentlemen. This you, ladies and call.

may wonderful have day. disconnect. now a Everyone You

IRadimed (IRMD) 1 Aug 212021 Q2 Earnings call transcript