MYOS - Earnings call transcript Q1 2019

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Operator

Greetings, and welcome to MYOS RENS Technology Inc.’s First Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Matthew Abenante, Senior Vice President, Porter, LeVay & Rose. you. Thank begin. Please

Matthew Abenante

thanks today. and quarter of for you results Thank to to the us Welcome call. first MYOS joining conference you, all RENS XXXX Technology

products; strategic Exchange Executive products; new today Joining the Canine for to to Formula uncertainties, facts results create may and launch call remind the Yolked, including and and any implied statements Controller. partnership opportunities effects; market our results is market; gross the the Actual the sustainable and that cash sales a of from products continued the Officer; on that like revenue of to not events circumstances any rights; factors effective update products, of studies; our including time after flow products; and statements and protect from listeners its into by margin; on to differ for no Joseph and the I date but development; us would and The new our Enteral development; We the ability to the Joseph MYOS in made ability call involve forward-looking statements. clinical clinical the Fortetropin Food from are evaluated those filings been and research the property our with and other the product Mannello, time listing or statements on ability or Securities the our are the the risks made materially our other results success success Financial is required DiPietro, of historical forward-looking revenue to operation and partnerships; the to on generate Chief our initiatives; this forward-looking Nutrition Formula call enter projected to our business; Drug on Qurr, product or continuing acceptance existing the increase to successful to research capital by ability limited to to Such except which ability revise any statements. the profitable products; conditions; risks as to those of including not the from economic achieve not related such in in profit demand; of statement ability of MYOS the law. development, Muscle ability have through statements of raise securities Commission. the competition our and NASDAQ and today’s successful undertake evaluation fund stock Administration. discussed customer intellectual providers’ obligation our

Good prevent Our results. to diagnose, disease. Joe. not financial or cure DiPietro, turn I’d intended over to call Joseph go products like any over to our that, treat, to speaker, first are With the morning,

Joseph DiPietro

us. for thousands. Good All morning, highlights. I to going financial in I’m XXXX first be go will everyone. you the figures referencing Thank will over of be our joining quarter dollar

three quarter $XXX quarter first first months the quarter $X,XXX to of to for for of profit or first XXXX to cost compared primarily quarter the XXXX, months compared of For for the XX, for Gross net the to to increase of of March was XX% $XX and XX% XXXX, gross XXX% to products. increased XXX% for our $X,XXX this the for sales first first of of quarter of ended to cost Operating expenses for quarter profit first XX% for the XXXX. compared the increased $XX compared new decreased sales $XX, the XXXX margin XX, to three for first XXXX. XXXX. to to the of ended first increased $XX, of quarter in revenues due XXXX, $XX XXXX, quarter compared of XX% for Cost $XX March XXXX, an

net to XXXX. compared quarter $X,XXX Our to the of for decreased the XX% first XXXX, for of $XXX quarter first loss

operating in three proceeds during had cash operating months activities three used March XXXX, ended compared increase by XXXX and $XXX ended Cash XX, XX, was of the $X,XXX operating March XX, XX, total assets three months for activities financing activities provided due March increased of primarily of provided to months $XXX, As by of $X,XXX XXXX. and net $X,XXX ended we an XXXX. cash March the $X,XXX. to of activities for provided Net $X,XXX $XXX by the

Our $X,XXX XXXX, March compared to XX, to at of increased working XX, $X,XXX XXXX. capital $X,XXX as December

payable, of $XXX $XXX liabilities accrued Joseph accounts due call food obtained. the promissory I’d by our to turn of interest Mannello. accrued primarily increase to Officer, $XXX other total and in over offset and of now Chief note the Our Executive expenses decreased liabilities to like current conversion a payable

Joseph Mannello

the been growth last after year. the muscle of our launch to the to in Thank a respond a think humans enthusiastically to It you, today. health, products great veterinary first a and nearly continue quarter already call has from Joe. contributed Customers and significantly both our we importance on you eyes being thank off was Muscle gotten start. mission Good firmly to top for MYOS and our has and year about change have people eventful morning, to for Formula, the on MYOS. XXXX everyone, our product, way our of line Canine very dogs. first It’s fixed

Our website. our comments customers owners. veterinary many range We’ve their posted feedback dog of from customers myospet.com and from the and gotten practice on testimonials tremendous to

In on has several a this them. change so a Canine I’ve in to in York stamina." was increase bouncing she to Newfoundland. up received because arthritis. there clients noticeable "Newfoundland in in was who weeks a a veterinarian. XX.X-year their after it’s she had are send reason product. the it her Fortetropin, puppy addition, And We and She we’ve wrote and And Canada, canine that a senior someone this, experience to from now old her noticing to customers try want definitive recommended got notion – and weakness X again. product is is on friends. like the Newfoundland And New is, a a I like it what’s get and the exciting. Amazon She And one share in about that we much the have Canada, have I veterinarian to so rave that has with to not loss, at soon. been rave the in But hope us Canada yet. were muscle begin we impressive. the about it, MYOS working comments I us to vets take to very but you get then really She added look urge

KSU recovery. its since the clinical capabilities. of to weakness, the in to help success is of muscle uses the The study Fortetropin we practice. Canine intolerance. mobility evaluate after which study products particularly CEO, announced weight veterinary objectives and driven will enhances health. our over the animal and introducing we at the at scientific launch customers of loss, announced of results our in submitted a Building key by are of quality MYOS our to surgery Back As impact in in months, full demonstrated the which a will or taking study and results College and when geriatric all coming this will of to key new prevents us, our our determine exercise journal the on listening as slow future be fully Fortetropin loss on vets, dogs; Medicine in activity life for us and Fortetropin, in study altered ability for of I be that ingredient, results dogs study said Veterinary research at the of January, dogs experiencing The growth the that KSU, to leverage publication

Canine, say, believe unlimited I that unlimited – and the While market. market potential early in MYOS the I’m current pleased I of the with the progress vet is progress, should is

period already or have in in the what horse positive evidence and from it owners being Kentucky seen the to great We would that for be working horses market, We at money trainer losing we to equine a a And has similar that to We’ve people in MYOS. dogs. even market. this are believe weekend, and potential money of short explore is in benefit the of for time, amount And won that a the truly of Derby available we’ve market. yet the horse in least that trainers anecdotal received at after product the launch with having cats. the

this want product year base. turn the since December/January I I’m Next, Certified with our this Yolked. Sport went the very with increasing and nutrition brand, to to about for pleased of our launch And the commercially excited out name, brand customer we it. really to really NSF progress I’m

ask the And our endorser fans And why we an Delaware. through of as these cost Yolked, of the I of has short and, the the Aaron partnered and Princeton, and and long-establishing NBA you do the seven to Tech, has company of building expanded season featured is and make their person Yolked very, quickly to When that road powerful good and, being level the incrementally and I I us with Fortetropin have And advertising addition endorsement first through on basketball is spent nightly featuring which we even on-court given at you begun way is guess, come. staple a and partnership, there’s adds better the building great to leader, target the Yolked know, us. a University the serving credibility at February, features NBA a in internal as very in official basketball will today believe to to of XX-year athletic salespeople begin has include: weighted as Endeavor the on is just official the that – brand the building a some cetera. that to star collegiate a brand court. with sponsor with I’m stronger, marketing Learfield/IMG media home congratulate base we switch throughout basketball And they’ve we’re footprint to IMG. endorser sure more go is return NSF footprint could truly marketing collegiate an of are Virginia on We’ve all we program should Gordon, changes. the a money years. a has and IMG without Pittsburgh, the I rolling time first a games so the on superstar, an the defined game. lot a John’s the ambassador rising for collegiate partnering a product He When Aaron of truly a department’s it stayed talking Gordon competitive is to our distributors, Marshall, all nine website return and In the out out with of and more making happy playoffs always for professional for been channels shareholders. I contest, he as is to truly University brand. Aaron Orlando support the team marketing Aaron fact helped people St. invite U.S. media all level, our T-shirt promotions, gives around deal marketing universities, social we us they at visit West and customer industry look at think announced and make time, you Aaron of I’m Yolked but more begin the IMG. I I’ve don’t leads old, versus Aaron our and in period it the athletes me credibility. a toss et in Virginia, for or and of the Rutgers, an world. an Yolked and Magic. yolked.com evaluating fan more as Orlando on could social want such see investment always in just photos basketball spearhead fans. And and – the view and Aaron ads name

will that jump-start So it’s the Yolked of brand. help intangible that an we’ve thought

at we know, and The online quarter. Shoppe the you they product – it’s took partnership now in this As XX and And XXX Vitamin we’re – announced store sales with vitaminshoppe.com. delivery locations

in litigation in are experienced a – a Nevada called building lag with a also agreement XXX specialty national these time specialize product between the distributors over experience April month are with New They in to to Yolked and Yolked also reduce when you’re large their We are I these Combining goal release benefit of from we eight unique Canine, a reps who Foods. RENS space, they’re RENS one selling and perfect I York. mid-April, only litigation associates today highly offices into the as We Whole I’m natural start state seeing night’s out very we regarding MYOS that and – to discussions particularly with And towards shareholder in value. stores And like brand MYOS fit and going last story. this a in of for selling I chains a were Canine. of long MYOS discussed fit growing is just retail large and stores think the their boxes. selling had the both costs Technologies sell the been mentioned getting with the brokers you most currently that or and as who major a we you teach-in MYOS I year. This of begin in efforts network state we last where press – retail which think, Associates, encourage visit is ago, All as NSA spoke fall. some are country’s Sales and last Canine the I their brokerage all consider managed the well-known the to to We’ve specialty settlement nationalsalesllc.com website. already in see XXX organic when proud of that to are product. of and to. announced of dismissed, them, in stores. natural, independent going as the in of, year It’s working I’ve has regional NSA, well which expect sales a National their and of products, chains, lineup

always in We consider business raised I runway our well long-term. without successfully recent and in what also ensure as having options. of capital and because we private offering, what or necessary as invested have private game offerings, skin financial warrants I built to today the management the because placement we’ve I should importantly, opportunities growth a over use for to the believe the more toxic have our personally

for I’m I’ve continue have know and lot shareholder value, execute to but to our in plans to want build turn this over continued you. to the It’s boat for thank a support. better. and an looked continue I’ll things We time of to our covered this morning. growth territory exciting with loyal company, shareholders you. And have Thank never now I call Q&A. their the

Operator

you. Thank session. a you. We’ll now be conducting question-and-answer [Operator Instructions] And thank

first Investment the Marckx Zacks comes line from Our Brian question proceed. Please with Research. of

Brian Marckx

on quite you business, on we a and asking something I that is, significant in was this gross something year. in relevant as from this which is too you the or the the not. guys, morning, I at going Good margin. as to or anything the can quarter and that’s know product be mix congrats all margin about guess, bit else? And early related, the for is is XX% prior if is to every wanted that ask The guys progress. of something don’t mentioned, up terms question Joe, game is forward? or that it look Is basis potentially in going quarter that I it a

Joseph Mannello

it I don’t is, think Brian.

more a I that of we way in too the more game and the probably it’s don’t look – will that. game. get believe brick-and-mortar in I move normal too into early do the to to I think as at And early it’s level.

Brian Marckx

okay. Yes,

Okay.

Joseph Mannello

I’m be we phenomenal, being I’ keep realistic. to it to it’s like could and going there say but

Brian Marckx

opinion if there Canine in The are was Yes, essentially veterinarian of are encouraging. considered feedback so community. the the product? – medical in that’s potentially wondering in if as there extremely that – opinion And if like sounds the there’s key key for terms something references understand. I community human leaders the MYOS yes, totally for addressing you’ve leaders using

Joseph Mannello

with who the answer think The opinion have key We is experience yes. the are veterinarians, people, the best our product. leaders

For three-month who over is us. Medical research dogs Animal neuromuscular she doing Leilanie Center, leader with to example, a She who did is a period. did – basically Ken key it opinion dogs disorders and a at for giving research; Alvarez Harkin, geriatric

are We as get vets their other the that spreading word they have product.

of that vet centers find we – spur word or them. unique We magazines, there have so sales writeups have to the some that is one and interested. leader have do vets could that if are canine key found get we really – some opinion the tremendous. agree helped mouth rehab of yet which I multiple We’ve gotten space in not great

we’re through distributor East way on easy other Let them a a Formula an Muscle tab And We we vets our added to the idea me through an the media of methods, Canine vets you just MYOS vet on and part how and of out Coast. reach give approaching team. to social become give website.

will the business great because often. not have at don’t – We vets time, they’re managing their

response have basically made and send It’s us get and better to business, easier we it, get we they just So get them will a them, for it their has manage marketing for way customers. been we and this. good check, launched their margins, deliver a and really the they and material, we

better their sell vets brick-and-mortar them. paid, The or issues product people other Chewy service. a customers price We’ve margins. and vet set buy where well go Amazon come some it better and up and can ship of could is, or One get they at home direct of the from a get get and as can lot a we a way then it as have to we

a program response We we’re to to out. continue tested. got we that roll it’s and So going a great

mouth Ken vets. of that word opinion goes about and in I example, again, So are – for But to Harkin, left question your speaks key leaders. area,

we’ll use continue vet have at with that conference, to a and the who have product people do spokespeople. one, to going and as our him experience another We’re large

Brian Marckx

Okay.

quality-of-life yes, compelling of their – with could would for they can get old, terms the that that. – lot State be that In dogs like – experience City’s Kansas it a Kansas the have just fact or that study, University dog be they as owners, of sounds the

So status finish? what was the start that of what – might do is know when timeline that or of could one you kind the

Joseph Mannello

reduced coming benefit dogs, markets, scientifically, in at good we But geriatric, There’s soon. we with are see clinical – do sarcopenia in if start the those the have dog, it as we’ll who a know that our I build because optimistic And I’m I study the XX think think And or the looking in that finish about for everything power of – – now the TPLO of scientifically, and evidence. quicker Berkeley these and always soon. quicker and humans? a put dogs think very State look always be Fortetropin or had the sometime because so geriatric atrophy. people expect a pets. they muscle think experience of guesses. case come other see I But out. muscle all make market, anecdotal see have if These than of prove the study We I a are those timing, we of and of – it I shutdown don’t forget anecdotally. to dogs – doing what’s study the on market see study we with atrophy beautiful geriatric results results XXX quarter risk But market. Kansas that it in the results State and Is I less that can the competition, I – expect a to but proved there same could at to a to And XXXX. if it it’s first quarter if when with a out will rapid studies a Just get product sarcopenia just study, through product, products humans with any, fourth for studies. Kansas placebo. pet they at it this. hopefully, expect surgery to from well value in we we have can that If little on don’t

statement proven XX, been big it’s make product, who for atrophy. very someone for is muscle who can we someone reduce is So the has XX Fortetropin, XX, not that XX, and our scientifically to up. That’s big

message a to our madness So excited about. there’s I’m incredibly science that

Brian Marckx

do Are of product? to label you you it on the a for marketing with claim planned relative have or the that,

Joseph Mannello

are We’re – there plans.

clinically and accurate. now are mass scientifically about lean – working marketing, say, and those proven increase I Both We say it scientifically right because can like the on proven of said, muscle we we atrophy. are decrease to size to can muscle

to and for the could than build say to stronger because make we proven – scientifically and lean we atrophy. proven working We mass scientifically proven. say, can So we and proven marketing size can is those clinically But muscle that. plan muscle are scientifically things decrease on

Brian Marckx

if of to went in it may Amazon the potentially when to So look product, that the have saying that a effect. description at future, ballpoint Is you we the future the something in right?

Joseph Mannello

on you with forward-looking et But planning say the that could can’t in the benefits. Yolked – Like what soon the CrossFit, a have cetera. we’re and – we’re name doing we athletes, crowd give Yolked the crowd We is experienced customers addressing cetera, I we I can really et cetera, focused tell I you numerous have who younger in is said, But now. on a IMG the – things. more – great are et XX-and-older it

hope more it. are we XX to We XX, older on energy do putting and and and more focus that

about We but because have huge, They’re thinking more very market looking add people to And differently. hope that, are science longevity it that at already, that. to we science is there.

Brian Marckx

Okay.

retail, the terms your deal going. distribution your distribution, got In specifically U.S. of – NSA in you

You have the Vitamin Shoppe.

a process, this look continuing you are progress retailers potential other to for is – distributors? where or Are things. other continued of couple a have You –

Joseph Mannello

Yes.

at – avenues and are we targeting We like there amazes our said, this they’re whether XX I And here size. many are me we XX, product. – from there how so It other to being the But retail brick-and-mortar. look have the continue for space. many, nutrition chains three salespeople have are business salespeople who stores, we medium area, also not small small out do store X, nutrition in who retail have customers

yes. is answer the So

targeting the forces. armed We’re

targeting and a chiropractors we’re distributor. the We’re testosterone clinics, with targeting relationship through

targeting We’re fitness centers.

So muscle. muscle need is mean I – – you

opportunities it. tremendous there’s around So

trying different we’re plans salespeople. very walk for targeted, So away reach force. using But get all don’t as and wrong, we as to rather areas. are our distributors brokers don’t have want pay get I’d it’s it, sales I can I because for – we me us there, well three but XXX% to if they stink.

Brian Marckx

one Do – on had University of the what Last the or the was Yes. Rutgers there is study. University. that you a Rutgers status know with – you a collaboration

Just that kind stands? of wonder where

Joseph Mannello

I It’s mechanism product, weeks. is every the to action. Again, really potentially different work said, of that of it’s them as our speak ongoing. on two – aspects to longer-term We

So concluded X." where formulated, study ways product, for it’s we really day to "Oh, a one That’s us cetera. not discovery say, we’ll et the use different for

it’s something to you, – I where – I’m date I so at. And I not tell with happy said, it it’s continues mind. in end it’s that can like only And an have

Brian Marckx

Yes, Yes. appreciate understood. I Thanks, I it. Joe.

Joseph Mannello

you, Thank Brian.

Operator

you. Thank Instructions] [Operator you. Thank

the I’d We end over have back of management our question-and-answer session. for to closing to reached the like remarks. hand floor

Joseph Mannello

shareholder such committed MYOS just I know everyone thank and for Hi, is for loyal here creating to shareholders everyone the on at being to want being call, everyone. value. that

thoughts, you any If shareholders. help love from our questions, have we’d any

people tell from just gotten ideas in seat time, the short I’ve you are of great will If know in company. for being ideas, if vets, who have this I you know period if you a trainers, stakeholders you

always make I’ll call available for our So always time me. shareholders.

to again, So and you, of thank we’ll a you in months. speak enjoy, Take couple care.

Operator

conference. concludes This you. Thank today’s

at participation. You and lines this for thank your you your time, may disconnect

MedAvail (MDVLQ) 11 May 192019 Q1 Earnings call transcript