MYOS - Earnings call transcript Q2 2019

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Operator

Greetings, and welcome to the MYOS RENS Technology Second Quarter 2019 Financial Results Conference Call and Webcast. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Matthew Abenante, Senior Vice President of Porter, LeVay & Rose. Thank you.

begin. may You

Matthew Abenante

and us Diego, Technology all you of Quarter Thank and thanks welcome joining Call. today, Results RENS to for XXXX you, Conference to the Second MYOS

Joseph us Mannello, DiPietro, Joining Controller. call the today Financial Chief Officer; and on Executive Joseph is

our would Qurr, to acceptance other products; ability increase the results listeners the operations; raise discussed revenue any ability risks may implied and and our of from Exchange projected this and Formula; Muscle success enter providers to the ability to with remind product differ ability listing development; to clinical other statements profitable demand; and products; the flow ability initiatives; conditions; fund profit our sustainable, in the revenue MYOS rights; business; facts are products; stock new of our from in our and the time partnership time the to effect to not continuing to but not and of of results relating the the and including development; to market protect those capital economic and success and NASDAQ or partnerships; Fortetropin statements. securities risks in development uncertainties involve of generate the from that materially of factors and effects; market; its our successful are studies, historical create evaluation filings to Such cash including of sales clinical intellectual margins; competition property the from Securities any strategic Commission. the our forward-looking the of opportunities continued of like ability of on and on I new our to our that existing including ability into gross and call Yolked research statements. the the achieve a statements the results product launch forward-looking the the Actual those Canine products limited through to successful research to products, our customer

no as obligation or for made today's undertake law. evaluated except date circumstances statement made required revise been forward-looking call statement We have any statements Administration. on by Drug the update which after is on by The Food not events to such the or and

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

Joseph DiPietro

you financial to joining Thanks, second in go the quarter will going be I dollar our will morning, for Matt. us. Thank reference I'm thousands. everyone. over XXXX Good highlights. All figures

The compared quarter XXXX. XXXX, or lines. $XXX ended for X Yolked XXXX, increased decrease XXX% MYOS X the June $XX X for June June to the $XX XXXX, XX, $XX new a $XX for XX, $XX the and net products profit XX, X from of primarily revenues in Canine compared by to for revenues due for ended to $XX Formula, product months XX% was to in our old months offset XXXX. $XX increased For an increase net or months second revenues our the $XXX net of increase launched of $XX to ended for Gross of

expenses XXXX, the ended began in-house three for $XXX months three ended XX% compared a XXXX, months $X,XXX the loss XXXX. months $X,XXX the team XX, the in Our and to for XX, that increased XXXX. compared ended for for XX, the company's or was compared X sales Operating the June of primarily June hiring due June to increased Net XX, increase $X,XXX or July the XXXX, XX% margin XX, months June X XX, to XXXX. ended our months This to gross profit June XX% an to for to ago for marketing was XX% ended products $XXX X $X,XXX year XXXX. months three June new ended of the

had assets XXXX, million $X.XXX XX, and of June cash total a we million. $X.XXX of As

Our to activities. the increased our compared $X.XXX June net on due to financing increased primarily proceeds cash by XXXX. XX, million December at $XXX capital provided XXXX, $X,XXX to $X,XXX Working XX,

over years, turn that, With like have to our last Joseph three with Chief now had a I would Executive I the call the to working pleasure Officer, someone Mannello.

Joseph Mannello

being script. morning, a doesn't like call the Good I for I Joe. Thank am difficult Thank I'm because today. sound hope you, which a is on this everyone. reading reading you script,

Our of the encouraging. first made highly achievements second we've results in half the quarter and XXXX are

of of XXXX. accomplishments fueled This XXXX, which made in have of acceptance achievements business, our clinical is through success progress of trials. half -- first case important conjunction demonstrating with the while market raising awareness significant XXX% for growth progress drivers in our and Fortetropin made the we our the future increase scientific in on We for brands the and core revenues fueled for

dogs in in placebo. relative the dogs maintained that group in received exert have impact Last surgery, At XX% The Canine veterinarians. a Veterinary of the growth could received TPLO Formula, University that initiated atrophy study year, a dogs of that College reduced quarter that Medicine atrophy Fortetropin Fortetropin XXXX. operated every plus had after in muscle examine following to limbs in MYOS myostatin received levels levels to more stable clinical and we an the with canine on product, time, the second in have from from ACL was of that We the force muscle we dogs our with MYOS same study launched growth their quarter, received surgery. results That reducing the including Muscle encouragement double-digit similar Fortetropin surgery we showed then, revenue Since of is on Canine macronutrient-matched Fortetropin-based humans. XX% a increase of State to the placebo. based noted myostatin dogs from while Kansas

the the for MYOS the fueled potential surface receive received only Formula amazing performance, has Canine dog that While we've by continue with I for revenues I'm that the testimonials growth owners. Muscle far, reasons. this Thus from thrilled to largely of several believe we've scratched and been in

We testimonials have veterinarians. great also received from

said strength not vet's follow We our channels, pet always consistently social website Canine We and myospet.com MYOS come every orders, instructions have we've on being media Amazon, momentum. established would month. do and while their traffic caught presence truly a that our to doctors' then humans by measure the veterinarians grown the owners follow But lasting because their of accepted from always they sales letter. the which fast-tracked from

began to veterinarians with reaching State our of team. sending After out we our in earnest announced the data, product successful with and Kansas we them results of scientific our our study, samples engaging

translated which education, that We are to see now of increase benefits to of amount sizable receive a the starting weekly from we this has veterinarians.

study study the Muscle the mainstay Depending a there MYOS become towards scientific build of the impact potential XX that Kansas have XX To across study portfolio activity we we Fortetropin, geriatric that building evaluating of Formula the life the University. commitment outcome, in of the veterinary and State in Canine the at end the dogs quality far, Fortetropin of dogs. been on my supports for announced This this with further in is the recruited on and line strategy, believe on practices second one quarter. country. another of to as is study day Thus for

people NSF-certified we pleased Yolked, our far we product continue competitive is in nutrition In enthusiastically to that I'm the competitive Customers marketplace. mission launched April and about on think of Yolked, our on marketed thus of sport fixed -- pleased Fortetropin to the XXXX, all-natural, with importance to a way muscle for specifically based athletes. have change respond the to eyes firmly highly our health. to progress

IMG, with at athletic enabled X Division relationships establish us Our to departments over has marketing XX universities. partner,

are and of schools. education for at their trainers in part fall, key consistent We product be ongoing the programs Yolked to athletes. strategizing way partner help best Marshall University. an athletic and Yolked providing Brown training and at College, on the University will schools, with the Boston X product student This a the contact these nutritionists

in staff, hope not of helps school's to cooperation that the helps show training athletes make each also recovery. With only stronger but we Yolked

regarding with universities we to in In addition programs. other these deep discussions are X universities, training similar several

basketball Yolked visible was via courtside featured signage, prominently fans on spring millions school's TV each reaching season, XXXX of basketball the national Throughout TV coverage.

Yolked website fan addition, very official active was on department's featured sports introduce and and media In brand promotions. segment. were of social college and to among drive affluent, channels and a efforts awareness loyal marketing contests as each audience on-court and was official toss nightly These athletic Yolked featured fans, sponsor designed of millions T-shirt a

the to Yolked script with a the the excited Day promoted a tickets golden this will announce to Throughout who chosen in well. Rose demographic will be for These didn't consumer-facing paid be VIP Bowl throughout Four sweepstakes season-long finds a be country. behavioral expenses trip. geographic, the and Obviously, season, trip being of ticket that the campaign New I'm national will fit. hidden digital Bowl receive on prize customers work all by Pasadena. grand sweepstakes strategically Each Year's sponsoring Yolked Rose football in the targeting boxes customer will

national agreement Along national to with associates, agreement the national XXX its will Yolked U.S. offices sales sales Yolked of with enacted at regional which online distribution enable at Vitamin locations for our sold our selling network XXX We store their with throughout vitaminshoppe.com. with Yolked expansion associates. and Shoppe, across be a with is X over NSA

than her endorsement professionalism marketing workouts, meeting in now commitment Aaron Women's recent perspective, to don't medalist, World the our Aaron to daily Year, a attributes our ads about represented create gold perseverance, a product. persistence, throughout out with Women's fourth represent I Carli Olympian is Orlando stories Yolked Olympic the We team. forming partners NBA can partner, X-time connection X-time joins will we Magic campaign. Cup of to X-time Carli of X-time an Lloyd hard with in soon Team our Lloyd. We've more to those social her Carli FIFA a work, footage Gordon, emotional the as and of games want superstar, most than prepare much by Yolked. humility better additional with in be our Carli and Player finally as be rolled want and Champion and media From a member the endorsement target some lives. think featuring telling FIFA appearance in of consumers nutritional a standard our

research the randomized, of protein by our results As positive leverage our as from to its since We delighted Fortetropin, of our ability driven fully capabilities. products our were I've line over is said top double-blind, success to taking the ingredient, clinical uses at CEO, where to of announce key and synthesis in Arkansas for the of completed University and recently was Sciences, XX Fortetropin University that of muscle study impact rate the on and Medical the years XX the evaluated California, men age. Berkeley between older placebo-controlled of women of we

to of showed Fortetropin This of fractional for relative our synthetic this increased study studies, significantly muscle rate placebo. number one excites positive all me Of the that a the reasons. most proteins

a First, truly University field in the principal of California, and at key Evans, muscle is William opinion Berkeley, health sarcopenia. leader Dr. the investigator, of the

Evans of commented, the muscle Dr. is nutrition in protein robust synthesis show clearly to rare rate on Fortetropin Second, has a positive It effect. product a consistent effect and for adults. such a older

the much muscle As to a the is maintaining range, me. for age value on place lifestyle someone sits importance lower end, at active end lower that who an paramount of I the

create footprint enable us truly successful to and claims, Our our commercial our with value. that, studies product expand shareholder support

We humans. to also All shareholder working pets potential building value. surface of in these expansion today while has enhance of with both believe to our are I'm and data, clinical brands and have of I've benefits and towards goal discussed pleased of the efforts for study our and MYOS. building our growing scratched that the health we Fortetropin the opportunities the overall And only patents progress beyond-the-label

where our reflect doesn't today sits stock potential. fact, In this nearly

fall. in closing, tuned So to would today listening I everyone stay advise this

and I this I go to both growing portfolio later and into year. our While look human additions several distribution on specifics can't our -- for brand discussing to pet that partners, have forward I potential potential the opportunities quite we segments yet,

our thank to want for And support. their questions. I'm happy to We take with loyal shareholders continued any that,

Operator

[Operator instructions].

Research. Our first question Investment comes with from Brian Zacks Marckx

Brian Marckx

have the start on on note, low looks sequentially. just Not to congrats the slipped, Yolked a but get of two to like sales out consecutive quarters Joe, it way, quarter.

related you to if And there's relevant if Just wondered about to anything anything, I just guess address talk can that. that.

Joseph Mannello

Yes.

First last they're quarter the that The of though order. you of large Shoppe over was -- even see fourth the Vitamin the reason that year, order wheeling it was all, in is slip the it -- year,

honest, it's be -- ups I'll building sports nutrition, to but a everywhere. have -- And in and and our downs. a there brand, is quarter. Yolked going that -- skewed that is So And its takes building and brand we're competition time, are

growth start it be of Shoppe last it double, and But So that gradual back, catch thought I And I we would going think order quarter. we're Vitamin home your night. very skewed uptick when hitting as improvement -- triples kind feel more the And an like you'll occasional forward, comfortable Yolked. going Yolked in would it Yankees the that to I the I to start seeing, runs, in sales. think, on look again, see now you're believed singles I but and bigger last

Brian Marckx

Great. right. All Okay.

So relative to...

Joseph Mannello

And please, those while I want we started, low questions. notes,

Brian Marckx

Okay.

that than on so -- scale. one higher are the positivity rest The Okay.

reinforce revalidate was talk another the another, what just the can are help and study? to phase or study, what Berkeley prior there So human replacement that relative you calls. that I had recently, to referenced found then a in guess, And the U knee you if readout or of piece the had in your is sort study for or seek you follow plans studies, about Berkeley clinical you study

Joseph Mannello

tough, answer The you or biotech beget who anyone know, Sure. it's as follows but studies studies, pharma. is

market, State are first let's If it it talk the who And study. somewhere The a for million-plus we actively at believe preclinical So this and million year. can. that fraction I TPLO we was or -- recovery perform in are between the huge rehab or replacement small a of X Kansas the and pursuing surgeries is about get there can study we these. not, believe which, X.X dogs company, knee in surgeons

us we study. And rehab But to recovery a that, lead as clinical to a I've soon study. announce recovery stated, hope to is and going --

felt study replacement having an show they a good One or Fortetropin replacement do. earlier, finding we could effect. results. that endpoints have surgery can started It But would was wanted not we what a find at lot effect that surgery or is knee to would couldn't make doesn't of we having regard an Fortetropin knee total or improve with really issues sure surgery endpoints to later, lives. People points the knee different the of the or because times with to hip is that difficult or of hip show in variability their have surgery

X and study have we So That's the next a announce on we that think we now to that hope study. that over makes or month sense, area.

looking building to there's little regard more is something of Berkeley age, the a where that With involved. on study, what the older in are at we doing potential activity

doing get of So study. we're exploring the adding Bill we we which in to are if we huge -- get speaking then I that at think will to That us. we look that. And there it, Evans. waiting -- for like to is abstract study positive the are said, a first, activity results And we demographic,

Brian Marckx

to dog what you And prepared in your Okay. study. you State about Kansas activity expect talk And -- can be you life remarks quality the the if didn't that. of you and mentioned on maybe if time line

Joseph Mannello

XX. -- The first goal quarter dogs 'XX, -- And quarter how the of the dogs we quarter, they believe fourth get is a at summer depends slower. of Fourth first it quarter end in to can XX usually The XXXX, had of quarter I get second little study. is the enrolled quickly enrolled. of

the say out. with part to then for later when study institutions no always whatever dog who people but reason realistic difficult make it's drop their think and I So will and quarter, you're first large than it's dealing of

Brian Marckx

Yes.

Okay. On my...

Joseph DiPietro

when We have publication me the study. Kansas going surgery the how the next TPLO to hope couple veterinarians Brian, many point big, let it State to months sorry. some how at of That say published. be want or And to of you over some, and is say just many know is people

study looking lends As is your it. not now because else that publishing investigators at it's you know, huge that someone credibility but just and

seal their of days. hope get we in that to XX, putting XX it, on they're and So XX, approval

which that. So press study and see the in to will can the Berkeley study because start And time give like the should the abstract, but people we can get we be give release Berkeley published, fall, we to Kansas have for publication. the again the the we State then powerful

Brian Marckx

to Yes, particularly, hear. next great my which Yes. into the to think a has that do that me been that's leads really catalyst? the question of to to in you Can That's specific And dogs And great. be MYOS really attribute Canine, -- positive growing seems kind clinical data growth relative you nicely. catalysts? is

Joseph DiPietro

Yes.

when keep I with clinical didn't what's were of got dogs rehab. keep know we're because positive try lot with data horses. they and I vets, is doing they it centers. before purchasing the business A big of think rehab think seeing our We people doing they and on business gets And is rehab try What are to for they we're this results. incredible it. into it, it. stay business I business I there a part do there even that cats and business centers

big our you here look and website, think that the they're growing. customer is testimonials up on is I our our repeat if expand. business the on at Amazon pretty to part continues just testimonials So And and powerful,

to trials us for in So the get vets focus. the clinical

to buy, I is think and results keep testimonial coming gets the direct to consumer then one them them back. the

you the surgery of or all I to need But clinical market. the market into get vet it's the think trial above. So the

million No well that year. million. exactly. I be $X.X $X there's makes TPLO up, roughly. one Again, that knows But dog over could of a anywhere surgeries, about think, XX%

And free give help. only any the a shout. and Brian, now feel we are me will questions, So to targeting surgeons those having publication other

Operator

management remarks. additional be Thank no for to [Operator closing Instructions]. you. turn or I'll requests to it questions. back There appears

Joseph Mannello

on the money now. doing way of being quarter. incredibly has the over will labor we've I'm think I brands. again real on the next you XX company and I these Everyone, six, think, been the fruits optimistic, for nine, And I spent thank do call. and three, really these you transformed this months enjoy is every seeing be building its

great So the everyone. again, care. thank you. for I day. Take around Have market turns hope a

Operator

may concludes conference. a All you. day. Thank today's great parties This Have disconnect.

MedAvail (MDVLQ) 10 Aug 192019 Q2 Earnings call transcript