Earnings call transcript Q1 2023

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Operator

Welcome to IRadimed Corporation First Quarter of the 2023 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, May 4, 2023, and contains time-sensitive information that is accurate only as of today.

Earlier, IRadimed released its financial results for the first quarter of 2023. press heading the website News this available earnings at of the under on copy release company’s announcing is iradimed.com. A their company’s to Commission a Securities the can sec.gov. released, press copy at also It release be found and Form on furnished Exchange X-K and was the This also website days. will call be live on the being over the XX internet on the call website replay at of the is for next company’s iradimed.com broadcast the and a available

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

to on Looking may severe forward results IRadimed statements and performance risk focus future you the reminds future differ include materially and factors. company’s results. the expected events due may from future plans those that results, statements forward-looking

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

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

Roger Susi

thank joining today’s Once in quarter revenue us I all morning growth. call. had put you that task have excellent in to IRadimed reporting and exceptional Good again, of has and another for yet and earnings

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

the a first per ‘XX quarter increase $X.XX a earnings last release quarter non-GAAP diluted morning’s quarter $X.XX increase year. of first this in XXXX. XXXX the XX% first quarter at share, share earnings was per with share million reported over quarter of for were per the for diluted XX% As first revenue $XX.X over the first representing GAAP

CEO our for that feel The supply start issues record Still little just obstacles but growth. the a overcome have the a in become revenue from constant. proud raising continues more having in supply validate These team ways efforts to frequent upon the a team our such impacting to guidance those earnings to on comfortable and very at levels. and hard mitigate continue rather We stellar was bit. of finding which for year concerns a have these results make growth year

Looking at to bookings, to bookings perform well, backlog built products. continues QX maneuver total demand our driving issues for provides resources exceptionally sales supply allows continues record customer at team to excellent arise. us as The increasingly and may and Strong visibility be backlog through levels. our reallocate

pump was due large monitor revenue catching to compared as in up intake made to then be relatively QX. the was shortages pump part in rectified but QX, revenue not in example, which that QX a order to shipments For differences of could not rather due

the to like our XXXX team pump. touch would is MR efforts forth. FDA I putting and Now have IV expanded last Since regarding new been IRA our solid upon work quarter, much there we

for two end dates of hand occur three meetings. these written regarding next human FDA by We which intricate rather factors request appointment confirmations be received have weeks of yet so documents the in will Q-sub and We X that the Q-sub this fourth in should the plan far quarter. testing, detailed

content a background regarding to the from meeting a and propose as we supply application. in our a is to speak FDA information coming, for our FDA case FDA Q-sub for and that sort obtain buy clearance As the of to hopefully XXX(k) methods, in clarify to

or supported, requests. consider the given I indicated have additional need emails, as generally which be us to information and discussed that several that in AI previous FDA regarding calls letters and/or follow-up As had issues explained we

ahead okay with as meetings, approach these to exactly issues obtain increased our with their and push FDA pave be we meetings, am will answering the indication approach, will these expecting. our expeditious more clearly and with With that I issue each clearance. from FDA way information confidence our clarity AI is for our Q-sub they affirmatively now present to we and answer Q-sub what with as we AI is hope would subsequently more possible. file

level Now, like plus for will would and this given the to our performance revenue I recap our QX, that upward business trend outlook our performance in and great continue, of confidence increasing of earnings $X.XX revenue diluted per $X.XX million $X.XX. to to and GAAP non-GAAP earnings per of in expect $XX $XX.X We earnings share to now XXXX. of million. diluted $X.XX share

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

our Now, turn for to financial over CFO, the results will Jack? Glenn, the review more call the detail. Jack quarter to in I

Jack Glenn

Roger, and you, everyone. morning Thank good

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

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

of reported to quarter million of XXXX XX% revenue XXXX XX% XXXX. first Domestic As for to increase International sales $X.X and earlier increased in QX million. total XXXX. for accounted to revenue million, compared the the of of revenue we first of morning, an $XX.X for compared Overall, XX% QX Domestic $XX.X quarter XX% this increased to was sales XX%

orders revenue was periods. Device million million from services XXXX, driven XX% last pump increase This and by XX% for QX consistent disposables the of for were our of of while first Revenue a $X.X million. increased bookings the both pump a maintenance contracts in of a quarter to revenue shipped XX% year. we at as received percentage in $XX.X strong to increased large $X.X

XX.X% International quarter margin year. last XXXX lower in in the quarter is geographic larger the The to was of due total XXXX represented mix, XX.X% sales as The quarter. compared for the compared decrease ESPs gross the first for sales gross inherently to their margin to with primarily portion quarter a of the as

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

taxable with largely $XXX,XXX of approximately period As a XX.X% $X the quarter. $XXX,XXX effective is during to tax the an tax result, XXXX We an rate quarter to XXXX. the the for income to effective last of rate XX.X% expense of the quarter compared million from same resulting recognized operations in of in effective This first of of in the a approximately expense year. tax quarter grew rate first first a XXXX XX% tax as tax the increase to compared income due higher in

XXXX same basis per basis first share On share diluted $X.XX adjusted to $X.XX for income $X.XX the $X.XX $X.X XXXX XXXX, to quarter a operations net was compared was the for of million quarter Cash diluted for quarter. March income up for for in the compared ended XXXX. from GAAP $X.X per On was second a that from XXXX. non-GAAP X XX, the the period million months

office $X.X quarter. months XX, measure a flow, future facility purchase free was X a our negative the million land cash March the $X.X our with non-GAAP XXXX, of in for manufacturing For ended the which of and due million, to

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

Operator

Wonderful.

Frank. Street first Capital. ahead, comes Lake of Our question Takkinen the from from Go line Frank

Frank Takkinen

previous obviously quarters, disproportionately thinking kind at more and to supply rates strong Great. XXXX. talk just We was to is walk roughly through items here little different congrats was one or progress and you not the sounds are monitors, in and in start taking been trying to each but it of me I really get like pumps expectations of you questions the below, pumps through bit line the related factors kind Being, related maybe monitors thing. those speaking, and a Thanks on it demand the has line with all what two thinking in maybe it for growth for of in wanted the for, to those And growth of are the items, about a it quarter. to is XXXX? from

Roger Susi

it to is you Frank, have call. Good on Roger. the Sure.

was over hole because the revenue So, QX, I back due large, look will shortages. to in pump a you of in just parts go in QX, pump shipments when at some revenue again,

that doesn’t picking coming are we going But chain us lines that bring question supply quite backlog. – the And let a more equate bookings, getting they was business patient sales how to Philips. mitigate have all, to been by our that that of we be, are this doesn’t from are a directly, choosing have other their to force slashing this group team. of your bit. MRI off now to there. story, lot Monitors Basically, difficulties we product as and it’s for, last sells I attention that their answer rest different And of issues, the and with space expect year. So, over what being call. book they monitor in one at alluded sales competitor in pre-occupied in the year, we do that highly our the going business

put year, competitive to lot as it of to not continues be much last a as And the be fruit call as we that’s hanging started it. low not so as wind through marketplace, they seem obstacle. us of a and our And went in to opportunities sail we lot of a in it here see present giving certainly let’s

team course of sales So, that. the gravitates to

to easy, where going, opportunity the and hunters, is going is we the this continue are it’s, here unfold expect. throughout they As where – year, to that shooting

these that you the that probably the pump some it’s will is we the of up much in as story pick And in still next low-hanging So, see Having really we Hope to be that of but will less with going be business, you monitor quarters a, are course, story. higher being, in drawing the growth said much, this more fruit growth the couple color. attention. there pump the since gives can. are monitors monitors

Frank Takkinen

to good to is related to directly No. Can specific the the context capacity to That monitoring line your talk speak expansion and maybe manufacturing you initiatives? and manufacturing that.

Roger Susi

Yes, Yes. sure.

space, even until looking be manufacturing will at late are get building, But in single just quarter shift. here, or think are we next ready still still running, the a we which tight in here will be we the XXXX. manufacturing I second quarters gives I us getting don’t While the are new the running won’t busy that shift. the to wise, about think two triple where we space but capacity

the go be be we As if surely second hours we shift during maybe to looking near-term. XXXX, monitor but this approach so time, – so the opportunities work at growing forth, if a great very extending our not in into that will business, continue and

Frank Takkinen

and XXXX maybe to related after you submission the updated a the helpful That’s FDA last one IV to response are me, and submission? commentary on talk pump. the thinking you Can timelines Okay. for appreciate that from

Roger Susi

Yes.

hopefully questions, we the a And once we XXXX. so smaller So, on quarters, dealing smoother in would fourth or we have this two getting having filing three are way, there the quarters hopefully We next list subsequent, in the of with part the sub-questions always the latter anticipate and is more ultimately sometime the do file. path four of quarter. clearance spending,

Frank Takkinen

stop I taking will again and on progress. Okay. for there. the Perfect. Thanks questions all the congrats

Roger Susi

Thanks.

Operator

Thank you.

comes Go question ROTH ahead, next Scott. Henry the Capital. from from Our line of Scott

Scott Henry

you. Thank good a to sort have of prior just morning, And couple I the gentlemen, follow-up questions quarter. questions. another of strong

changing and today, that First, of way? I a said seem month favorable, is on as more Am little momentum interpreting that competitor, competitive ago, a favorable signs even you it correct? monitors, no for it’s was that There as landscape in to everything any the the competitive. the just indicate perhaps

Roger Susi

sort momentum, over yes, these see last No, to anything, it’s to increasing so you continued just field let’s decreasing. go yes, if few hunting. it just into for some become talking of opposite, quarters, If – say, about much are open more it’s the have yes, we competitive us

Scott Henry

selling fourth that maybe was that Just can you individual but there make. And make capacity so sound can not so seems fast sounds are appreciate an like are with many how certain much with to it like in everything. bottlenecks And some of, the any anymore? issue. may that bottlenecks much are everything you pretty you pumps, there can parts regards the make? quarter talk maybe issue – you I on is parts or It could then only Fantastic, it about, there…? like the some is doesn’t more you It you update. But

Roger Susi

That’s Good Yes. question. good question. a

a pump said, So, on the some either weekly that’s monitor. have a have And basis just as we I constraints cost. are, part, – a have in a yes, yes, pretty continues, they the, with much heartburn used a real or that

this last be, course ended over ended we far here to margin, targets, as by a planning we so, good year’s a set target we And our a for – are up, are XXXX. revenue With course would right. year, we as as our buy set and we procurement,

could visibility stock, we safety problem more start any anything, get if So, to of to and build course, coming.

So, that’s the plan.

what we quarter is chassis that parts to castings, was the itself are still issue was was, And very so, pump some hard that castings. though get. seeing the metal, believe I Last

So, an around base so but is obsolescence have monitor, material And some we monitor. had in had redesign and electronic, we a to the nonetheless. monitor this part into componentry and quarter, not issue the the hustle part with new the of station for we

that effort, white and a solved it. but big we knuckle flying so was a of And pretty there, lot

and of for, as I just going getting what sort guess your does from, guess And we if so it the alluded started you have way, issues yes, components to question crazy adequate that right. this build. can with not to that I keep Supply you say I when you am giving us caller

have not can are building, we the But all we So, as get that’s of physical really because of throttling said, thing. the the as capacity you material, we build, plant.

Scott Henry

Okay. you Great. for color Roger. Thank that

around a device trying be upward around it well, number that just quarter think get the about trend should Just was we generated there? Is to think going this How bigger an is arms to XXX,XXX. As FMD that the or my that? lumpy? trend, I

Roger Susi

Yes.

quite Now, we an upward going think to that’s trend. be

I believe sale FMD of as this I is different. quite well mentioned So, the the call last have

devices. gets sort They directly to is going monitor, rolling pull interest case and clinician. forget the are a small out and tight orders. are with force a generates of learning out on set it a they their set pump device, what is that’s in it, of So, They – it to our ultimately used and with deal sales an Well, a excite of it or how FMD doesn’t

– And with that’s go are it group they going are things. to are their heads, learning, all is XX while that what of you order, And to they will of we get sorting thing, to the to tool got in-charge one see are. how nods those. And they reps is that, give is have simple demo one the their because there smiles, talk great, right. and a in, around the takes did so it little who And orders we are. start But making to pretty to learning out a same clinical about like hands yes, they of they everybody that little of our deal follow. It’s a And a they through, to thing to people. who those But created issues XX, in seem them ability. hard whole demo of the we

case, curveball. on it’s so be take installed don’t that them You out it a the got gives of a to doorway,

think learning the now it walk they the of like it. comes through vertical comfortable definitely it display they So, sell we find and in box be that trend we And with as think modes and things lumpy, who get And will demo have be makes be guys the will and line, we upward. in do where progress to hat to out of to through the more our their the given how won’t but turn have mean has them something straight the rally they I finally it way year, they it And a that those can system. on a tool pull probably out will are the decision.

Scott Henry

would think how how picture the great. you do a just environment about categorize center, in pricing pricing? And Okay, worsening pricing, big kind you improving, of then stable,

Roger Susi

rate quarters rate been that we That increase, actually. has – of little off pricing last four backing are of improving too. a bit Pricings, these

roll year. – I a the trend. still think of what we is some done you continue in positive in have changes, see see biggest to is rest which pricing of we and to revenue, it’s throughout them put motion the effect yes, you yet the are will But will out,

Scott Henry

a in is about than the in higher how And good quarter. I so little Jack, sales, noise, and for looked that or a than he items? expected great. we maybe a little there think Just on? a those shift the I expected G&A could sales like G&A was Okay, lower should going it line one quarter the and participate, Is

Jack Glenn

Yes, Scott.

primarily on reason the big the So did additional that for headcount. was G&A the we in increase quarter as have first some

the And first that some sort the some But of some would etcetera. also sort has of with focused just, expenses and been audit side. we legal in taxes that on also and the are professional inherent of that be, to higher have QX and regulatory has payroll quarter

So, those so sales I G&A overall, the as, a trend side. a just forth, is of for plan on commissions little the and sales bit the the the in early bit year And just bit the reasons quarters. the side in little upcoming little kind expect but will with were OpEx down are the a probably last, would

Scott Henry

taking the Okay, questions great. gentlemen, Thanks strong for and really again, quarter.

Roger Susi

Thank Scott. you,

Jack Glenn

Thank you.

Operator

I like Thank to closing would now you. Roger remarks. turn Susi it to for over

Roger Susi

that, as And our thanks outlook you, and results the operator. stronger quarter year, a but the It’s great generate this I growth, future for lines. reported revenue with forward to as I the reporting successes we look again, so and continuing thank product to of to everyone guiding Well, later I very much. existing performance year continue the with filed progresses. look great joining earnings call pleasure XXX(k) thank you and pump with to new mentioned, more stronger And year yet strong And forward as expect progresses. to today. that this been having another the

Operator

concludes you. This the Thank call.

You may now disconnect.

IRadimed (IRMD) 4 May 232023 Q1 Earnings call transcript