Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, welcome to IRadimed Corporation Fourth Quarter and Full Year 2022 Financial Results Conference Call. Currently, all participants are in a listen-only mode. And at the end of the call, we will conduct a question-and-answer session.

As a reminder, this call is being recorded today, February 2, 2023, and contains time-sensitive information that is accurate only as of today.

Earlier, IRadimed released its financial results for the fourth quarter and full-year 2022. press heading the at "News" this available earnings iradimed.com. of the under on copy release company's announcing is A their website and sec.gov. A to X-K was copy can Exchange Securities and at press Form Commission found also be on release the furnished

being available over the is days. for next on website the the Internet the of live a XX and website iradimed.com replay broadcast call call on company's This at will be the

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

may results, may Forward-looking IRadimed expected the on risk these reminds future statements due results. materially differ focused plans, performance, and future statements results events and several forward-looking include you from future that to company's factors.

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

would Mr. I Chief IRadimed turn of to over ahead. Officer Executive President call Corporation. Roger the Susi, please Mr. and go like Susi, now to

Roger Susi

Thank earnings thank call. on you. us today's you all for And joining

to revenue yet IRadimed once that excellent quarter another of It's again wonderful and truly report growth. earnings had

in As our revenue quarter sixth XXXX morning's ever this we was reported and revenues. consecutive QX release our top quarter record

of special dividend you seen; our have cash that per Board may I'm has very as announce Directors approved to also a today pleased share. of $X.XX

Allow the performance me financial we have to take achieved. short a into dive

diluted quarter morning's of that increase a last this $X.XX. for with quarter million, GAAP fourth XX% per share As was the release, revenue fourth earnings quarter reported fourth $XX.X year, over in

over ended our ended XX% December $XX.X prior XX, in year the the was a revenue XXXX. full-year For XXXX, million, December increase

has at in the diluted in earnings per the XX% a over XXXX. share come $X.XX full-year share, increase full-year XXXX per for GAAP

disruptions delivering dealt challenges only teams purchasing service with regulatory as from finance to of well and the this as but face it regulatory they tension. to engineering did XX% continuing to challenges not in Our and supply sales worldwide growth, the production of

extraordinarily I'm entire of these IRadimed and efforts extraordinary the pleased our team. with results

The such XXXX enter job an than exceptional we year XXXX our volume even sales shipment an this we with bookings that fantastic larger with outstripping team did started. backlog past

Customer demand continuing the into and the directions, the the MR our XXXX. problems space in for very record confident strong is earnings and in and all product revenue growth with lines competitor continuing we reported monitor of business feel

increasing XXXX. pump new of as growth to arise. backlog monitor product Additionally, reallocate in the balanced resources products the though; become an shipping us issues will a expect to for and lines, visibility both leading and as allows strong the driver supply XXXX may the provides and maneuver and us monitor sales excellent was well number well, growth line with FMD we strong

Last withdrew new quarter, we pump. it, as XXXX excuse re-file later the XXX(k) for our will refire reported previously, -- we IV year. me, it this And MR

you of in and see extraordinary. will launch new firmly believe IRadimed's in the this unfortunate this Although as lead has was of I delay pump, it, will and growth been to course, remain

deliver Though, simply again. one is we on business fire temporarily, been MR The XX% another XXXX monitor expect door has apparently may opened. have to and growth closed revenue near

either I Q&A You welcome session. regarding revenue our more FDA would any and later this in questions shall of issues of or hear details

of per XXXX and to we million weeks announced earlier, As GAAP non-GAAP $X.XX. diluted a diluted $X.XX $XX of in earnings report expect share to we million, earnings $X.XX to $XX with $X.XX revenue few to of

$X.XX with million $X.XX GAAP $X.XX $XX.X per and diluted of per to million, revenues report $XX.X $X.XX. to expect first earnings to non-GAAP share share For the quarter earnings XXXX, diluted we of of to

to over relatively call to to our Now the quarter. now results the CFO, new the review of Glenn, Jack I'd financial like turn

Jack Glenn

Roger, good everyone. and you, morning, Thank

basis basis. a As are on reported a and results non-GAAP our in past, the GAAP

You a GAAP can on of of measures of find description measures a and reconciliation earnings our page the measure to non-GAAP the these last morning's non-GAAP today's in operating this release. release

earlier reported XX% sales over International the of XXXX domestic we revenue compared to to increased On basis, XX% grew this revenue in in of for to XXXX. quarter $X.X XX% quarter As fourth in quarter million. the for morning, for an $XX.X million, quarter fourth QX of a increase the sequential to sales the Domestic XXXX. revenue $XX.X XXXX accounted QX XX% million was fourth $X.X XXXX. increased of to of compared million XX% compared total QX revenue XXXX. Overall, X% of of

million. to monitor XX% increased $X.X market revenue XX% team increase was execute This a and the driven to sales revenue gain in continued by as Device our monitoring share business. in

to to services Revenue million XX% $XXX,XXX. for contracts quarter from maintenance our while increased disposables XX% $X.X and of fourth increased XXXX, the

to The XXXX for the compared for the XX.X% gross quarter. XX.X% was quarter margin XXXX

the mix. the gross For margin primarily gross costs The quarter piece margin XX.X%. due XXXX, big input was and in higher to the in variations was for the full-year the product

activities, basis, for $X expenses of due expenses million to higher to and this sales and revenue increase or headcount, were commissions or compared professional additional legal $X.X fourth general for of administrative On revenue XX% XX% higher expenses. and XXXX. Operating a and higher is quarter the sales of million dollar primarily

grew As quarter to XXXX. a $X.X for fourth of result, income from the million XX% operations

benefit with stock-based fourth of due one-time to of tax fourth benefit a a in of recognized a compensation associated $XXX,XXX during expense the approximately to the of benefit of $X,XXX,XXX XXXX the primarily The quarter quarter was tax expense. quarter compared fourth in XXXX approximately We XXXX. tax

of the was XX.X%. year The rate effective XXXX tax for

$X.XX to XXXX. XXXX tax On the adjusted $X.XX a the QX was share per compared quarter income income the diluted fourth benefit $X.XX diluted for the quarter net was basis, compared difference to XXXX. basis, a GAAP the of XXXX for with fourth non-GAAP in share On for due per to $X.XX quarter of

ended for down that $X.X months million in for XXXX, from operations XXXX. the December same three was the million XX, period Cash from $X

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

that, I the Operator? with will over And turn call for questions. now

Operator

Thank you. session. the We'll [Operator Instructions]. question-and-answer begin now

And Capital. question the of from first ROTH coming with our Henry line Scott

open. Your line is

Scott Henry

the morning you. strong I have did congratulations and Good of Thank on results. a couple questions.

did First, during the average perhaps it, and I quarter? missed price you monitors but the give of pumps the

Jack Glenn

we just internally, material calculation on complicated the quite -- No, can not can vary a were the product, we But there's and difference can the And giving change the bit discussed just to There was going past and we're cetera. also Scott. we've no as the in is in but specific different types ASPs, the quarter get solid, any didn't, unless it. with be in quite I have from and monitors also the the standpoint, and the calculation competitive real ASPs from a et quarters. of there previous pumps, --

Scott Henry

was helpful. whether seen Thank guess? trend, give more I you. a Could an that or strong, often in happened? then color should really Okay. before, than a what you or $X a aberration it on you higher and number any disposables services That's was And And is -- we've me wasn't million importantly, continue strong, just could was three tell it.

Roger Susi

a a let were bit, I'll lot But IV then jump sets. shows little Well, in of follow-up. I'll Jack maybe selling it we

sets. also, strong. the from electrodes way seen which electrode, of disposable mainly been leading disposables just the But the items the are say, perspective have pump the we've with running the, the this accessory largest that the go So let's with or sterile is monitor,

the been hook has with monitors past the earlier, we these it hugely said are And I growth. launched along this in As just successful was that, off going since electrodes. year

we -- -- years been of a of and two corrected ago sort The ideology with about a you two will, too. ago. well bit then of in We item. commissioning, sales quite had that So put that the of that maintenance we're a if back. deemphasized years selling change sort they've And maintenance

And and been change so where kicking maintenance of to it the passing years extended prior seeing ago. and had you're to two sale that returning in the

job these those we're and you put items yes, a well. accessory maintenance as great with and all So doing together

So level expect at do this continue? to we

pulling the the growth it, continued the the good that right along had with the of with monitor, along With year. past of just we pump will the this growth with keep is with and electrode growth disposables rate pumps, the --

-- So yes, I would be as sort That's if mean, surprised point. we of it we some hit generally. sustainable see this it at plateau

Scott Henry

the could you Roger. competitive you, a in And since market. Thank mean landscape? I the Great. on color give Okay. more you I line, competitor the little monitor problems on about talked got you maybe

of kind how we XXXX and of any and out you're picture there what idea big into factor that should seeing beyond? least Just at

Roger Susi

chance They to earnings break where rather they they do. in believe to with space in know out don't I of Monday this there the the a tiny on call the portion I you don't recent many call Yes. compete of Well, what monitor had we what them follow is on MR how that they do. had or out Philips' listen

everything read if from see very they on what Monday, describing scalable. going be and high longer, growth, resources to put to any businesses that everyone were made that they their you that can't prune they're I to call items think for they're they are their going to they're various that could large and clear But shoot their it catalog into you going --

that those comments, we to any say with I'd those them MR read monitoring, in, boxes. this I hear So of patient compete think when I that line those being have it checks don't and

sales one-time well they we've it's XX them seen -- So and reduce over XX, they we had that had and radically understand. -- territories now manned under force the

I too So that, read. leaves Philips' hard all everyone I are just And call. have at tea glance of a would suggest to not think that are

Scott Henry

That's to in color. and margins, been Thank XX% you, or range helpful. for XX%. between somewhat a the Roger, close to gross variable they've -- Okay. statement, Shifting between the income XX%

the question and think quarter in were lower. that were guess just average is, about they're a another good I trending third with you throughout? one and should is Second think I those Or as higher, direction? number do the fourth numbers first or variability of direction quarter

Roger Susi

it. I No, think hit you

many back in that significantly that And If tight range range centroid And plus around that break that either. we've look range, fairly fairly I the don't X.X% and been will but fall or sustain high-end X% we that that I of think we grouping. range. tight of a able of of so many, a out be average; that or it, just to is I won't out expect yes, think is you quarters, minus

last that's question, So is -- these yes what of I the yes, answer seeing quarters in many fact. average you're to your believe the

Scott Henry

to just that or higher you. is Okay. Jack. interest it's final Great. else it starting for going on Other anything jump positive there? cash -- out And was XXX, rates a balance for question income, Thank the at

Jack Glenn

with yes, seeing higher -- cash it's Clearly, is. we that and rates quarterly a that what are the interest our a now on That's income right. exactly nice basis. yes, Yes, interest in coming

Scott Henry

Okay. questions. Great. Thank the you, for you both taking

Jack Glenn

you. Thank

Roger Susi

you. Thanks, Scott. Good to to talk

Operator

next moment coming Research. our question. you. question the next line Singular Thank One Sakai And with for of our Christopher from

line is Your open.

Unidentified Analyst

I all of congrats on of Hi, very [ph] was thank Sean wondering on the dividend me I and This color you, for you the trend encouraging. first give was announcement, guys. can the disposables. is wondering gross results margins -- if some Chris. on great

Roger Susi

pretty it's Well, it's steady. I just just mean -- very

turn There we're those increases turn but question and sort sets. by is, yes, them it seeing hasn't -- that in in and of into, parts such. commodities, there's of them we your the polycarbonate been still not PVC the seeing devices cost mold cost we and IV reflected So those in plastic are into if -- of pennies what time we the impacts, have those

structure -- any in haven't see So had the any the we cost impacts negative disposables. we don't to

Unidentified Analyst

your the and increases reasonably issues guys that inputs given Okay. to we been the able on to on And can of those inflation all have assume pass and supply you price customers?

Roger Susi

were We is is products, increase key the least really the these and primarily, able hit. the I that started components us six, We And and seeing the issues, negotiate heartburn. really, getting guess, did early, component ago, We and for Short year-and-a-half to this seven hit; monitor. rather yes. ago. giving prices we whatnot the electronic at started answer pump COVID quarters

become that Some how contracts because of take, -- of have long the and already. those of they effective some

become them, come yet months. of negotiated we over they're these -- a six in some ago, still you'll -- them And though to next be effective year

had we've price yes, So increases.

aren't have actually reflected in some been quarters. for Some yet, over earnings the and negotiated and our are next place accountable and two will be in taken have physically but

Unidentified Analyst

is that rough you give track Great. a us to share the color And That device. how sure you disposable I'm extent an very dynamic can helpful. trending. with can you be of per would

Roger Susi

in jump can you Maybe Jack. one, on that

Jack Glenn

on the trend far as not the visit on as I'm disposables. I sure if

Roger Susi

guess trend. sales of disposable I the

Unidentified Analyst

at devices. Or Like device like color is know, any color guys up which your how to can maybe out one more going look the can a or units, some model you if is, less? you mostly on revenue understanding are way there is essentially, disposable And you divide is trending? Or and it give device? it So us you you something if per per but us give, know track give if it can you on price, revenue don't there maybe disposables a can on -- it, by stream is that. and disposables I

Jack Glenn

Yes.

certainly, growth growth both and touched this the Roger I at on think some correlating I well, the with when earlier monitors. look we the disposables is pumps and there in of the -- the think

As gone range it sales was -- around XX%, percentage I our last think of I XX%, quarter, has sales, total around somewhere this a it's think XX%.

closely has growth. our probably is I correlates going and of think devices. the it sales shown it's pretty on again growth with forward, going some But percentage stay as that range So same a within to

Unidentified Analyst

Perfect.

Roger Susi

not IRadimed will, build offer have we bit they the a margin. I their the and disposable around the lot that's a may companies, though, model disposable, a you revenue thing different, margin, is business of if a a a nice might great uses and of add, the nice little it that disposable razor, at unlike so piece has

at gross device the margins minutes these a that few these or whether we same, margins delve the detail, that are into about our you talked it's If ago, the disposable.

So mean, maybe lot tell not should more model. typical that quite regard. that I a you about our in It's

Unidentified Analyst

providers Wonderful. on changed in six in years. capital have over had color three the And of their or spending in two Things months you further a with recently terms of have last or any the terms last outlook. interactions years lot guys

color you I wondering, So any was can provide?

Roger Susi

I us I to -- to Well, looks like it looks good. it pretty us, mean, mean

revenues fantastic can you our increasing rate. at As see, quite been we've a

of So I are CapEx Maybe that we're seeing us versus in. markets niche don't in, various enjoyable can still be are quite things healthy expenditures think as market, to in I've the where we facilities. expenditures this and more in snug far the other maybe lines we heard play as

pretty you think still we're from what -- our we in good customers. do niche, from look can So but see I our enjoying a

Unidentified Analyst

Absolutely.

think medical So difficult constraints us with provider, pretty different would much agree are you for might maybe way to unaffected, that have, Maybe is whatever guys a or that market, might niche providers things you look device considering one little or bit for right? -- capital might average your that? an not but

Roger Susi

allocation. areas haven't more We're the under Yes. the that Oh, there. universe, in other immune little our little CapEx radar the -- device may a that you we're yes, of by medical say a yes. pocket of -- corner little to we would bit our dampened being impacted I see by been kind

Unidentified Analyst

like or device sort by any that. radar be facing, the not it you guys is finally, Yes, especially that? and comments color of And as also players. some or right, the issues not under unaffected Any right. looks the looks the and also on maybe finally, of been been industry all like generally, have the as has you maybe on place much offshore supply word, right Good that guys other has but chain not that on affected to

Roger Susi

everyday and day. had some near helps, for and could lot them. But fun. really I'd to hands that look been of gotten we've $X been have our $X.XX our I were margin, consideration components Well, we've size, we that that That an we've So point literally them. It get robbed seen But misses. had on with get right? just has $XX paid can to that during you, at think we a we've tell had of components or each full might say way. I had mean, I some a that it that sweat hasn't of We've

moving. substitution And at it. agile So it components. we'll also ourselves very we're keep to We'll do of do

So as alternative tend the slows expertise to here. here. world, as not but them is design around It's not get down. agile very they and grow can They're scattered solutions done All companies the we at it so is the all larger be. seeking

nice a one line. another solve we So yes, you where put thanks in things a up quarter throughout all good to the that having and together as another said to and our as and people can earlier, product thanks materials one to between shift problem -- I people and pops manufacturing we our backlog purchasing extent, different

increasing. So lot chain dodge we of you fade have a I away. issues And to yes, going we've days, on, deliveries starting waiting back get And They're are parts the supply these of read but right probably year. in in can over cases in a seen not for line managed as juggling where papers some it. say, there's we've -- at the to we've been again it price a to will seen ourselves starting

Unidentified Analyst

Great.

Roger Susi

Hope question. that your answers

Unidentified Analyst

yes. Yes,

So looks that your managed upheaval here, deliver to a to the surface, execution you of great, it been and and to customers. under lot calm there surface kudos well, keep management have has like the but considering

color. got. all So great. for the Thanks That's I

Roger Susi

welcome. to You're you. Good talk to

Unidentified Analyst

Thanks.

Operator

any to showing the turn Thank questions I closing call you. at any I'm further Susi for would time. over back now not Mr. this to like remarks.

Roger Susi

accelerating we of XXXX. and opportunity many may strong that our very at with rate, running pleased be to being efficiently its report for couldn't XXXX our share to levels gain an envy. more Thank and peers expectations products this such is had adopted Operator. to IRadimed a of Well, have you, at for margins are

a meet to plant successes you designing all. which look I thank With recently growing, as our we site, year now future company progresses, needs. areas are our to that, are including new purchased All continuing growth at reporting forward physical and the

Operator

the this you gentlemen, Thank concludes and call. Ladies for participating.

may You disconnect. now

IRadimed (IRMD) 2 Feb 232022 Q4 Earnings call transcript