HROW - Earnings call transcript Q1 2020

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Operator

Good afternoon, and welcome to the Conference Call covering Harrow Health’s Financial Results and Business Update for the First Quarter of 2020.

On the call joining me today I have Harrow Health's Chief Executive Officer, Mark L. Baum and Harrow's Chief Financial Officer, Andrew Boll. My name is Kristie and I will be your operator for today’s call.

Currently, all participants are in a listen-only mode. a conduct will we question-and-answer session. Later, you earnings press now, should have the of copy a release. received By

If you site have the not received a copy, page the Investor please of company’s www.harrowinc.com. Web at Relations go to

include today, begin of you company’s the me Before forward-looking laws. we within let statements security that remind the remarks federal meanings

such to and time-to-time and Health’s timely are uncertainties, FDA manner related or risks including Forward-looking candidates in control, drug company’s make which SEC uncertainties of ability in all. risks technologies of subject approval commercially compounded and statements from as many to the numerous available a certain risks and described uncertainties formulation its filings, Harrow the are to beyond and at its

Harrow see any recent events, section the Reports forward-looking those the For because a may list Report Commission. and Annual on description projections with or new differ of statements, and Risk Exchange obligation results please revise financial Form company’s of otherwise. from the or future subsequent most information, or those update intention Securities Form of materially Health’s any and uncertainties, on XX-K risks disclaims or whether filed Harrow Quarterly XX-Q projected. Factors to and

and information conference contains as of today. accurate This time-sensitive is only

available GAAP non-GAAP is and/or metrics, of comparable company’s EBITDA the included Harrow reconciliation will Additionally, in refer to the earnings. measures release adjusted with press directly financial on site. most A specifically adjusted any measures the Web non-GAAP

over With session. the prepared to call to remarks question-and-answer I over Mark Baum, that, like some to go to would the turn Mark? prior

Mark Baum

on Investor website to read Hopefully, everyone which Relations today. section the had our was of just our today. close after chance stockholders, our joining trading a for call Thanks of letter to the posted has

Before Q&A, minds. be items investors' highlight may I'll that on few a

not results our hit saw quarter United quarter immune shift optometrists in business This in was what were company a a or of was weeks nearly our fourth ophthalmologists non-essential stopped into the the continued reported economy, surgeries like dramatic of the States, quarter. to halted fairly ago, two from, which two causing we strong when months middle we every customers last patients, after Just April. in and seeing the

as begun not in the started pre-COVID-XX to return, However, have reopen, orders to states see we've at May, although, level.

leader a our in of business. Health, of and is think shareholder As about Harrow part future my to the job

However, crisis, focused to employees we harder working has than during extending our entire COVID-XX three, emerge that on Harrow downturn and management once three our sheet the our reinforcing ensure things; ever one, two, this stronger team runway; been balance and keeping key safe; cash abates. the

our first and plot Regarding for to safety protocols to our expected to implemented management. bonuses deployed cash completed work executives, requirements. earned fees and infrastructure from numerous vendors and the allow then scenario We employees, employees employees Directors sheet to balance our collaborated all to stable, analyses the of payments, keep to ensure to them delaying certain with Board We employees some of point, previously our home. we and including

from million extra lender we our As you Holdings. $X know, secured an SWK

received million our has protection the we working Finally, hard that paycheck employed this approximately from program $X crisis. during helped employees keep

be to our for team a ready proud what able keep we've believe we snapback We formulations. intact that opthalmic for are been demand may in strong

Gross sterile the the we disruptions $XX last experienced million March, compared was million XXXX. XXXX $XX believe of quarter revenue were for the to compared $XX the year. during first year. was last the in mind, in upon our Without against at ophthalmology quarter we quarter COVID-XX. of million With portfolio, for revenue XX%, An the injectable to in quarter first close of able we same remaining was positive an compared about Adjusted the $XX.X on battle first the positive EBITDA course million flat, at fourth in long-term unexpected XX% coming $XXX,XXX XXXX. above to for in remain the target end million which and wellness $XX.X improvement was the an quarter. quarter need for to the of Total fulfill for at period was unmet margin our first revenue first in the $XXX,XXX to

expect our pleased were certainly slight wellness pandemic, in While business we quarter. we post during spike second see ophthalmology a to to the improve

to Doxy.me on to value top customers. market. more ever ImprimisRx products, up. been that to We've also and the giving I telemedicine delivers stabilized have time on out This During physicians it they've with with than sheet never it this the rolled and visibility great easier business including in success. was balance working our making focusing days, we've our our our customer signed do over improve experience, to the of new a business wellness team agreement exclusive XXX more ever XXX challenging to an provide ImprimisRx XX first than services getting our commercial physician and our and enthusiastic about And customers been had.

of through other the weeks, near-term the we’re which one Visionology for update expecting development Melt’s INDs and business. three conscious surgical as with ImprimisRx letter non-IV filed, application a our coming covers such has of shareholder pass progress platform temporary opportunities, exciting patented formulations within portfolio. for sedation its status now Our Surface, In the our expected our progress non-opioid, with launch

catalysts, deliver licenses new our hope before these FDA through products on We call. patented also we work activities of to formulations of news to actively and and value next on these sell our events could approved others good or platform. in Any significant other ImprimisRx continue to be

ahead margin there again adjusted somewhat are has hopeful, process, for our that these believe in that of strongly see and begun highs been optimistic the in our XXXX. reopening models. beginning generate better-positioned more record to we I gross revenue, because did and never are to be like to EBITDA we business reasons have are states revenues orders And

So this perhaps coming bodes quarters. well for the

to into questions. pause for I'll jump ado, have Q&A. the poll operator our further Operator? Without let's

Operator

Thank go Instructions]. comes Riley from Andrew you with And FBR. B. first ahead. [Operator our question D'Silva Please

Andrew D'Silva

healthy. everyone hear sounding I'm glad to

prior couple work effectively And In a able ones that first completely you rolled the traction that I if out to at the fourth a quick quarter lingering then curious new me. the quarter. exactly market, were the where you of quarter, able regain to you mishap? as kinks? relates you you for Obviously, all was it out within of removing had were just you just technical the to the issues, to COVID-XX half during back to a anything there's from technological there highlighted implementation. couple were of first if Just or

Mark Baum

And In we quarters systems in better out I of that worked those issues that the IT those say kinks, terms ever. than fourth working we we did. experienced and absolutely are the can whether

customers account surgical visibility are fact, that's as the those density more In that giving to us grow within other business, hitch well better we our greater what an systems the products buying and insights or the last can into access six we as to how portfolio. so over ImprimisRx made weeks from and to get offer a business, without we've improvements into additional

platform, base. we our factors X,XXX that critical who are, add approved into to tremendous customers into we way have have FDA large by are so over customers, seek Those the as we products customer visibility a the really very

I mean is shipping of one that that to the of in the were traction any days. than and highlight I to the fewer despite other the February able regain, terms tried month, spots fact we has that bright In it letter days fewer

during daily hitting February, of revenues we're month basis a record the that on For month.

COVID-XX So, we were say track, month to we're bucks for XX track for I this that the in March. on hit slowdown, But would month. million on of

So, really we month. well into a going great were February doing is March.

were a records. technical And eventually good glide up glitches. where And So, for path think that's more on we're we be. going we made those I to towards

to need reopen. avoided on in strong the offices the so. be back seems and have six procedures to I they these There a we done patients last As weeks interest that letter, these over to or said into country get have our

Andrew D'Silva

to just see our of Yes, your great model. envelope that the back February month in

but earlier to to them reopening we should maybe how to and or Can that in us states spiders, compounded that be of sure was surgery beyond just I'm mentioned was then stronger. And reopen? you when or give I takes as relates patients nature centers you much year, it your the to And Has we been ambulatory was let prepared and on have be a the are on as that about that good orders interesting did reopening of insight in that? of some hear. slow model way to going it any implement trying last that's in you remarks. think been also Our of basis, some what earlier started just into curious in? the started us effectively coming to sort handicap the or restart, get relative bolus a shift points? Has of effectively data either state-by-state because kind think just use CMS a it pretty or give products big to things just would stocking, the there

Mark Baum

key first. Yes, is be work and and clear, them. surgery with we've that country the relationships And and last so centers to to to part made address partnerships across the the with the I'll try physicians these

may working have And them. we're some that inventories so clearly, there's expired, and with

costs connected that. immaterial are there so to And

going to us as immaterial our happen. these to write immaterial they're So certainly I customers. But material and downs are they're very though to inventory said,

to to we're they we're, they need have work with sure reopen. the too make to happy products so that And only them

some that of different. now, say into bit like certainly Texas chunky revenue, consistency continuum from at. of handicap expect a know In and with to to in states of for sort come would as it opening initial little I revenue or I terms elective tried you are I I revenue to I’d think starting that see in weeks. And that they And next that to example reopening. of know, the kind chunky executives And soon, the very accounts ordering some growth. XX, to I've phase be bit consistency, initial XX patterns. consistency back getting to going know more little to the level certainly this have then procedures right states we're handicap for of were there's say at created kind I consistent the percentages couple a some there's so of disruption

But I going vision these a is procedures key they're going away. that to think need the for not These us people going care. to are and the business need is

offices we So to talking as these the won't in also, to letter occur. of be we're certainly, vacations. summer lot that they're there -- And them expect said I

offices a the take to And shifts done. that's double working as about are think care such lot of volume. things, talking I of unprecedented expected

come procedures are to back. these going So,

do to and We in and have reopen so high confidence. country just need the way. a We safe to responsible

Andrew D'Silva

And year would we a of has? Would like what think product question status related of that pass you status last it situation was Medicare is more to for product the for highlighted this the much. fall should compounded of through under be B? Part Or that's Thank has pass you that of that through me. that products. pass-through kind opioid last infamous or perpetual one question the under three status Pacira the And a the very

Mark Baum

expected obviously If know a Xst going say, us, it give is something granted it fairly it's no effective. accurately, we're it's to when become and was the definitely product. guarantee opportunity. for July to mover I would needle about soon. an I if but think is hopefully if exciting But pass-through the answered away would that date There's needless it

patients to result here on we we're working They're should But work confident we CMS, But completing our And they'll application. COVID-XX. telemedicine around to and bigger it, that fairly understand a right fry we'll serve So, able to of work. more to other know fish we're connected that hopeful as initiatives now. be their on soon. get has as

Operator

And question-and-answer. conclude does that our

CEO So L. over I turn the of closing back remarks. Health Mark to like to any Harrow conference would call Baum, for

Mark Baum

call. will Thank our conclude you, that and

to look then, stay We'll to reach phone until will our we'll safe out Jon please investor If to get His free relations next speaking or you associate. And This time. you number questions, conclude is any and Patton through forward this. feel XXX-XXX-XXXX. call. to have

Harrow Health (HROW) 11 May 202020 Q1 Earnings call transcript