IRMD - Earnings call 4 2023 | IRadimed Corporation

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Operator

Welcome to the IRadimed Corporation Fourth Quarter of 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, February 8, 2024, and contains time-sensitive information that is accurate only day. Earlier, IRadimed released its financial results for the fourth quarter of 2024. A copy of this press release announcing the company's earnings is available under the heading News on their website at iradimed.com. A press release copy was also furnished to the Securities and Exchange Commission on Form 8-K and can be found at sec.gov. This call is being broadcast live over the Internet on the company's website at iradimed.com, and a replay of the call will be available on the website for the next 90 days.

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

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

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

Roger Susi

Thank of product QX and Good call. quarter. very you happy us consecutive execute. joining further report XXXX our morning, demonstrates We I'm for IRadimed's record on our offerings strength tenth and today's to ability to believe you, operator. thank the

the while release morning's were XX% GAAP a representing quarter per came revenue at in the this quarter over share XXXX increase $X.XX, earnings 'XX. share, announced, million, As increase per for earnings QX quarter were of $XX.X over diluted non-GAAP fourth XXXX. diluted XX.X% fourth a fourth $X.XX press

new gain in we winning Our quarter. MRI entire acceptance team's sizable commitment, And patient continues focus orders pulls with together have some achieved. The performances to past signs and provide the once can-do to this attitude vital again, monitor customers.

of again And older orders for are brought to our product forward gain start very year, targeted surprised quarters regarding growth Year, monitor were received plan pleasantly pump having our Thusly, this expanded we keep guidance in of of an by coming pumps learn our of With as for the the comfortable a the performance field pushing bullish shall with continue of a strong. and ahead plan MRI we of business selling plan. providing older in direction in in IV the have we New program We in feel moment. market. Sales after came through to once you new we further replacements XXXX. and to significant share these the QX which business, for

customer had it I the reduce reducing backlog. we in us indicated striving products supply resources lead which deliver provides earlier strong we and bookings allows As in to QX. a backlog thus backlog XXXX, which arise, although what our started means visibility we plan may and and of with as lead issues And excellent times, less reallocate turn maneuver reduce time, the to are to in

long have However, we backlog delivery lead time preferred. and customer we a than bit more still associated

to This shall in are our continues others by testing materials again, in quarters. XX coming FDA IV being but have XX we shave test acceleration the underway, I'd time done XXXX lead the pump. provide another is which massive to continue I are the regarding production new end. spoken through of we reaching and some finished, progress, delivery. Once progress like while MRI an surrounded that's Previously, with So efforts, the been still to days of

FDA and the I forward. move been, in other Our do have impacting help support now materially XXX(k) minimize one we consultants as costs Still, relationship these but the feel help time. we necessary rising technical involved, assistance. to them success are not external for statutory see deeply and review And ensure for fact, outside and earnings

we or We needs will FDA and half cause such of feel submission help carefully. filing XXX(k) are that help external for additional the input external refiling time back May should new such additional would that would the inputs different clearance in the time planning XXXX's clearance. consider in We plan in for to the But XXXX. us produce concise the our revenue XXXX, more XXX(k). device elements show a shorten from Expecting so we QX suggest lead the

our full $X.XX. million report to for we GAAP guidance year XXXX, share -- sorry, of earnings million, to share XX XX $XX to expect of per to for diluted non-GAAP As per diluted $X.XX the $XX and $X.XX with $X.XX revenues to earnings

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

the contribution to XXXX still a deliver pump strategy such XX% XXXX. performance in close in and I'd highlight to The replacement by FMD helped of is in overall rose to earlier. year. from monitor are XXXX, XX% the to All shareholders increased relatively we IV spoke I sales like XXXX very Now all, and increased of product some to during look the sales patient revenue, forward threefold proud XXXX. small XXXX device to a The device sales our MR of details over our

like and the CFO, Jack? to results the over call the quarter year. to for I'd Jack our Now financial review Glenn, turn to

John Glenn

and morning, Roger, good you, everyone. Thank

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

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

absorption from was increased XXXX. compared earlier revenue million. XX% international revenue reported Overall, of sales XX% of quarter in $X.X increased fourth $XXX,XXX. $X.X of domestic XX.X% in increased quarter. Operating this million, of an and XXXX the sales fourth due $XX.X for primarily the or from Domestic to gross XX% XX% additional XXXX accounted to $X the quarter. million, expenses, XX% the increased increase quarter morning, to million to this to primarily to to to of $X.X and quarter higher margin a $XX.X As the of XX% This compared we expenses The for of expenses XXXX. Device in higher revenue overhead revenue and services is of higher due revenue contracts total XX% monitor by general in increase fourth revenue. our as the were fixed is X% while decreased were for compared gross disposables volumes XX% QX for XXXX XX.X% million The was the or maintenance down quarter to the at revenue XXXX a for quarter Revenue for and for compared for increase margin fourth million. the and expenses. increase benefit headcount, XX% was of driven XXXX, administrative XX% dollar to $XX.X legal regulatory expenses QX XXXX. On increased million professional basis, production

was over during approximately income in $X.X million XX% of up ended quarter for with XXXX, And adjusted quarter. We per quarter the tax the flow, an fourth rate an diluted of to XXXX $X.XX million, XXXX. from fourth XX.X% a for and fourth for $X.XX in million same for the relatively $X same income I our for non-GAAP for was of months $X.X call effective basis, the questions. XXXX, XXXX. Cash $X.X free X diluted December measure, December rate $X.XX the that, and grew share XXXX recognized XXXX effective million, tax the as for the XXXX to a $X.XX quarter operations resulting the XXXX. $X.X million the net the -- XXXX for will XXXX. On rate This effective for for tax and As ended quarter. from result, compared was tax a cash share the was XX, turn XX, Operator? On months per quarter operations GAAP from of for in respectively. And expense period XXXX, the non-GAAP XX.X% a fourth million was X $X.X of XX.X% income the compared basis, to

Operator

[Operator Instructions] Lake question Frank our Capital Street from And Takkinen first comes of Markets.

Frank Takkinen

XXXX quarter. to us understand guide the Can you on to $XX growth how we million hoping the monitors us of disposables start was on with to you're thinking I help -- the million guide? $XX one million profile Congrats $XX pumps, could bridge and guidance. the about

Roger Susi

Yes, you latter? want the handle Jack, do to

John Glenn

Well, sure.

that Frank, about think very in I end pump talked orders you that, we've QX life. the seen from that the program saw -- and in we've perspective, had a in we you'll on and coming a bookings strong from of see

say. bit lumpy how don't forward, in that continue before I number going the be that based The have that, would the get than think I of a on quarter-to-quarter But grow shorter, be going times And caveat I overall, total our disposables, to will from the capital, So pumps kind on perspective. maybe growth as the the we number. are disposables as maybe revenues grow growth. little the we that forward XX-ish XX% to consistently, lead monitors optimistic to visibility. somewhere would of kind say around with But of that's can probably type double-digit-type being kind so are say, a our on little we that XX% would to and more line from high in of I

Frank Takkinen

you then helpful. how current or on opportunity Got this at can in previous player yourselves think replacing the update And the opportunity are it. you maybe you landscape. do point? that of competitive to on are other monitors, feel penetrated provide that players how That's into you you market related Anything than those the penetrated an replacement monitor into

Roger Susi

feel quarter. maybe month into, XX,XXX-plus between and that quarter take that day-to-day -- of competitors to the there's this day-to-day field. aspects Well, Frank, many let's of XX% the you. XX% penetration But right? point, bigger the world our I'll in out of that how of have talk There's at say, the happens, sales. And in probably probably we're to address month, Well, installed we the sort one, are the for the that doesn't X around by to market field. that, good the They are business that products by

we the those, these feel and call are under, a you on that this that others we're players currently, of go all units XX% the everywhere to close older said, a it, collectively in long so XX%, just we around And to leaves let's X,XXX planet. have, somewhere as market, XX,XXX way I replace year, shipping still to ones between but that

sales I a the sold that years. the have legacy way kind been say it's why products of versus last that's replacing the look XX twofold in marketplace at So to existing these day-to-day

Frank Takkinen

and RFPs anything could How them, be into that there and some thinking be with replacement converted there help pump us came significant orders as well. can pumps? out Is have that? older you of clearly, the know helpful. this my update recognition that's quantify for around the about little call the warranty it. we'll was the if pump on an cycle there's you X-plus an been the can a more that about now warranty then one. And for coverage That's Got you've of there maybe influx provide last -- I you year talked how just replacement revenue to in, we understand discontinued of, old some that IV the should one, discontinuation

Roger Susi

Well, old our by time down large has I but call, decided as because XXXX, I why to the or it this August because September product, that of growth, earlier got the took device, that bit, that's is the by as do in pump growth of it back it. at been. announcement product at what stimulated a I maybe of That and aware break the I said of sort replacement end device made the we rose in fumbled largely from -- words end results sales XXXX we people we XX% in to by when

we poach a quoted in of yes, in hundred only was would, not getting the So customers around we've in orders, few they I quite business surprise pretty XXXX. RFQs, resulting up good and a got which rapid but than placed were that some those pump thought turned we and customers, you as more -- those resulting nice said, we think

happy that still and is several the old we're And pulp. on yet the breathe pretty quite bit so carry on of that, to months for a going trend next life

Operator

Singular from of comes Research. question next our And Frank DiLorenzo

Frank Charles DiLorenzo

just quarter, bit question the to if largely in increase was could QX, that? administrative about a the for that general the was about talk you The so a consultants fourth because related of that little there bump

Roger Susi

talked we've Yes, was outside Frank, as made. on and to it -- lot attributed as being consulting the we about, progress XXX(k) that a legal,

and expected would I up, QX so be the be to especially. -- this QX that like especially early going part And think, into bumped of the year, in

kind perspective. in spend the line that with probably was in from in So of QX what

Frank Charles DiLorenzo

doable get top XX%, your say, still up the around of Okay. longer And gross you side? is line say sometime new the XXXX? back the an assuming the a margins, of for gross target in your the goal is product realistic term, XXXX XX% that toward on second of and half is launch beyond, once But going

Roger Susi

optimistic. pretty that of we've XX% mean would we've obviously, that's say now, that kind we But -- right than XX% it's said, been range. I would there. of I goal to target certainly in a probably as Well, say range XX%, have I a and get of north

certainly, I but think I volumes, probably to more think get that overhead. future. But the we maybe could always, on as again, cover higher fixed -- some of XX% in continue not we is near possible, the

Frank Charles DiLorenzo

[indiscernible].

Roger Susi

last mix everyone in to able seeing And say that again, that up I certainly were material geographic very varies the by actually, us from stayed but mix and year. ASPs our some also would helped get as costs increases and has we've been overcome product that the price an standpoint, some quarter-to-quarter, just have has that over side, of right, the ASP monitoring on been we -- else strong. And certainly

Frank Charles DiLorenzo

question. other One Okay.

had a better-than-expected you the with strength pump business. You said

you differences, strengthening? XXXX little out it stable? seeing similarities between that? granularity Is the XXXX, budgeting on various a Looking you provide systems regarding Is it into any hospital for there? are maybe landscapes Could

Roger Susi

Yes.

On it'll advised we getting pullback side, August we FMD. fact, the et that's on our But pump in of which boost cetera, customers wouldn't as we is pumps. soon, that the we that for several pretty surprised quick. September We monitors a money aren't to be X-plus extended top sales get -- September, generally or that And you're that said, got from in at, seeing of last pumps -- or from ordering trying I or hospitals, quarter, the a started resulting yet. money back that's in quarters maintenance lot and in did obsolescence any older pleasantly we And we year lose were broken -- quarter, think activity. and selling last X go pretty

So any no, seeing we're not pullback.

Frank Charles DiLorenzo

Okay.

addressable term for the question U.S., long ferromagnetic ex Can other what market, the opportunity talk systems. you is, detection think about one total Just U.S.? you the

Roger Susi

see it's very Well, lot a of Yes. small a We market littered right? with And entry, medical a to players. barrier not low still. a it's It's getting is it device.

lot players the small see of and that these so device we a one type on doing hand. that are And makers devices not

million, right hand, $XX business other $XX million the somewhere and size $XX the between million It's is On this now. million. of sub-$XX

firms, in of learning business So huge a during a that it's sizable firms so of big is These to piece put looking and are done design not rooms we is take we're rooms, the things but market, a -- are market. What piece are time this the through contractors. architectural MR being built.

pipeline we're fill. to So that's trying a

-- the they will, our So obviously, get that other prime this but to those takes resulting out rather falling where the to a things if and are best that's start you is business, to sales feel but before we say. that start long return for in way pump, slow the so get they end efforts,

Operator

IRadimed I back This closing concludes to would for it to the session. question-and-answer turn remarks. like now

Roger Susi

It's performance that year with forward we QX year also our as very new successes progresses, guide expect we our thank results. XXXX strong that Again, you all you. as pleasure much. great And reporting with progresses. the and look can a that thank that, report I we Again great and future to year-end the pride

Operator

you. and you now concludes This Thank call, disconnect. the may

IRadimed (IRMD) 8 Feb 242023 Q4 Earnings call transcript