MYOS - Earnings call transcript Q1 2020

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Operator

Greetings, and welcome to the MYOS RENS Technology First Quarter 2020 Earnings Call and Webcast. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to our host, Joanne Goodford, Investor Relations contact. Thank you, you may begin.

Joanne Goodford

Thank you, operator, and thanks to all of you for joining us today, and welcome to the MYOS RENS Technology first quarter 2020 results conference call and webcast.

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

or I from would facts facts not like those Any statements results Actual on statements to Actual may are projected remind those our call results forward-looking differ statements. implied release any may are forward-looking listeners or that in implied in statements. not forward-looking materially this any historical historical differ are projected in statements. this forward-looking materially from that statements. any are that

MYOS impact success with Such limited create statements physician Yolked, our time from of other coronavirus on product and demand; to on but discussed research from of in generate our the the to of and to conditions; from ability our product involve Commission. Canine flow the risks Formula; the a to providers continuing achieve formula, parts ability Securities sales our margins; the development; NASDAQ our of products; time health to and of partnerships; the success and our other muscle to pandemic initiatives; cash the the risks acceptance adverse of to our and products new capital listing market; to uncertainties, and and economic Enternal fund results our to: of the factors revenue products; including, not and our and development; products, business to our Exchange market ability protect existing increase property filings the of in economy; opportunities, results and ability the and our ability profit the to including business; and those securities competition into Fortetropin rights, clinical raise ability gross the the sustainable, operations; its success through Nutrition products; of effective the and Muscle continued intellectual relating the stock profitable successful development; the enter of customer the strategic ability Qurr research revenue evaluation partnership MYOS Formula, new effects;

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

diagnose, Our products intended or are not cure any to prevent disease. treat,

Good to would our that, With turn go first the to like DiPietro, to results. I speaker, morning, call over over the Joseph Joe. financial

Joseph DiPietro

and everybody. us. for morning, good Friday. morning, you Thank joining financial RENS Happy Good highlights. Joanne, MYOS

months to by Canine three XX, to XX, $XXX,XXX of $XXX,XXX, increase ended business, an increased March our a This primarily due the from for $XXX,XXX XX% Formula by three for product, the product for older March ended revenues months XXXX, XXXX. our net an or $XX,XXX offset compared Our net our Muscle of is revenues increase $XX,XXX increase white of $XXX,XXX label of decrease lines. to MYOS for

March XX, sales. related to XX, $XXX,XXX ended our increase Our of primarily products $XX,XXX revenues for revenues XXXX. ended months to related by three to The cost or in XXX% of for increase the three due $XX,XXX of XXXX, March manufacturing compared to costs cost increased an product to the months is

and increase year. $XX,XXX, marketing of and members of general teams and research XX% or XX, by in to costs decrease for marketing the for March to XXXX. $X.XX due months XXXX of hiring months due to of XX% the benefits to XX, administrative our personnel last XX% selling, decreased and in $XXX,XXX offset March primarily $XX,XXX expenses operating the and is expenses decrease additional in three This Our compared expenses decrease ended by $XX,XXX $XX,XXX, to operating of three X% ended sales

The the of of other for $XXX,XXX the general company private a proceeds the capital $X corporate use connection capital, purposes. and to aggregate In proceeds million placement from and X, our primarily development, as net note. cash company the closing exchange research as XXXX, issued well resources. placement intends principal initiatives and an shares promissory March with Liquidity strategic of private for of working on

As of March XX, had of XXXX, $XXX,XXX. we cash

the the loan to On loans payroll, the benefits, received for and other provides expenses. rent The loan eligible proceeds proceeds The company establishes purposes, April XX, utilities. XXXX, the part for of Program. for PPP businesses payroll qualifying Paycheck company use to intends in the $XXX,XXX under amount Protection Act, including and qualifying of CARES

Mannello. to Joe With that, our over I’d call the Executive Chief to Officer, like turn

Joseph Mannello

Joe. well have we as you, actually with all home, my doing at I’m office sure everyone and the I you is of safe from each day. I’m that dealing are. many and Thank hope craziness this

by me focused saying, XXXX, management entered Let begin health, our we verticals: just we as three were and on age nutrition. sports animal

for verticals have each linked studies, anti-aging is efficacy these Tampa. is would It statistically positive nutrition longevity positive that know, such are a drug a especially three Kansas Berkeley, product, you from rare sports and results a Pet, As product, and and to for State not for nutrition for our clinical studies.

large These to great next growth have over prospects XX the years. five and verticals are

However, way. we vertical each same in don’t look at the

decision anti-aging That better longevity; get sports believe we Our on resources made used focus money. our nutrition. a where are then your and pet first on of and was on can or return we products, finally,

it playing far, out And according to plan. so is

if However, your feel we there’s better of capital. will adapt and use a we change

able give the first good while fairly quarter. highlights able some We of to results the cutting me expenses. were you of to achieve Let

conference the frailty Our U sarcopenia Berkeley in was study Cal France presented in remotely March. at and

to And a but got that was study. to veterinarians, yet review a year published was a study great especially we realized. with old just who going once with greater I having and study public want XXX-dog it went with was study it. much early were see response just of peer results KSU than we peer-reviewed impactful, impact in the going in April, ONE and public PLOS a These journal the peer-reviewed Our out

States. insurance Canine. supplements top-tier companies. MYOS insurance pet different, cover XX%. in big small boomers Xx up to dogs and company is continue vet to to is Gen many covered as product, We insurance. Xers There’s with Millennials their Europe, And companies in and are than United they also insurance insurance bringing cats covered going pet it vets seven get a but the It’s approximately grow. baby pet is but just announced – Each growing. are pet can If And recommends our veterinarian it’s to the more older that insurance to are. looks like much

about that. we’re excited So very

KVP products supplies, such introduced They just our with. great a approximately braces XX,XXX Andy sell as Ponte. agreement was veterinarians. members, company We with to to one of an surgical also International. KVP announced work me Board They’re to by

partnership. So I’m excited really about this

private closed we placement on March to, alluded X. Joe As a

tremendous March. And going had we incredible We then, all as hit. momentum know, into COVID

to were up First, were work that we there. quickly supply anticipating made remotely Then our make sure normal sure fulfillment they set to made greater issues employees we sure our safe. all of centers had

do discussed The see we for were so aspects not also we payroll, money towards were Program. to Protection we news Joe proceeds able my all our business, company essential to deemed that we an I of rent However, $XXX,XXX supply. positive these use utilities. will this and benefit, – Paycheck of so received better will the salary. make manage go none get the a salary under

a get to when were shut best and create had now clients of centers. and plan many anti-aging revenue are down; to essentially chiropractors, gyms, our So do essentially fitness veterinarians, to our prospects we doctors,

So we’re what let doing. me try to tell you

and e-commerce; customers Padliya much drive MYOS, Center, to medical veterinarians We’ve to aging not as one, our also through with now. – human Fortetropin. pet tell dogs Alvarez to but Animal community. webinars direct-to-consumer we’ve before the amount only the webinars traffic webinars with trying: who pet talked Leilani tremendous done and supplements two, done had us. do in outside from our We it numerous about to from We’ve and Dr. did created Medical did Dr. educational COVID. We’re since, we’ve We human for for one story some

get a to will COVID, even – over our of And continue customers through customers. and so get lot this reach try we continue but to went and And we’ll that once to it do new way we phenomenally.

a product contact we looking its can with times. benefits. as And do constant stayed get whatever offering during the help to we’re of customers, for offering in awareness our Fortetropin and We’ve deals and been marketing these to We’ve opportunities. greater them

customers. of everyone habits XX and that months, going also change our to to on make landscape call open is business during any understand next and over if the XX As know this difficult if they of the you’re to COVID is going to of like times, six, look it. the our that what we want come, sure We

side smaller of a bigger We’re are what to get essentially? we of So have we now bigger the much of on a and a once and this trying a piece bigger now take other to piece – doing pie. then pie

take now questions. will I your

Operator

Thank you. Our comes from first Bradley Jim Woods. state question. [Operator Please your with Instructions] McIlree question

Jim McIlree

good you Thank morning. and

near I initiative? a mostly bit And for if you’re that you’re success mentioned that’s direct-to-consumer. elaborate to little a issue? or was to talk curious could maybe spending of measuring that you’re spend about how Thanks. if the drive and You traffic the your much little trying to end a that like on call you would bit how Facebook-driven

Joseph Mannello

do the opening social shoots, traffic starting we or did was some are veterinarians particulars as other we’re going won’t as expense took performing. many there that? I but people We you and how into down green through Amazon, the look Sure. to normal that our taking media, shut we e-commerce traffic, it’s Facebook, it just we’re – MYOS Google, states see come spending did where spend, mostly go drive see and Muscle some areas what is the or what Formula We back. and we look we is spending own MYOS to see know, what Canine how vet Formula we and But are at sites let We it’s and well to trying specifically, to all our chewy.com – and judge the used are. on focus to or data Amazon our up, strength more Muscle probably at driving things. and vets to Canine

Jim McIlree

on of the, of too instead veterinary-driven permanently towards sale? going efficiency do the have pre-COVID yet the marketing to versus spend Is early it, enough data determine you’re it to of the say let’s Joseph a to that thoughts? there more direct-to-consumer call change you that Or spending

Joseph Mannello

each one figure the the out. your beauty do when that some – the last is your is on the that that’s to it example, put because want release drove them ONE And PLOS aware believe out we’ll we’ll study, And we do that. statement tough continue it. to vets press of for we judge time. But I of we to

If market. market the going So we’ll to are us. continue that vets at what’s market to happening in vet. spend we’re big, look big and of a is to some opening to advertise up, out for use Direct-to-consumer

think would for April fit. a going big amount But still direct-to-consumer. as move tell still spend. I later the marketing May, using that are, we will our But can’t I ad of a now, we’re obviously, of right part and it spend So be good will for results what see our we that you around be will and into date. And a

Jim McIlree

Great. luck and with Okay. a Thanks lot good everything.

Joseph Mannello

you. Thank

Operator

[Operator comes from Key state Maide Thanks. Our with your next question Instructions] Client. Steven question. Please

Steven Maide

call the Thanks with insurance think the the was data really think pivoting and with that’s good the positive. really I reimbursement quarter I good then given Joe, you. circumstances that congratulation, carriers, for it and the really the from taking a Thank questions.

pushing guys best many the having sort their try that the with insurance I pet to as that. – as had something moving what’s on people – you to try there’ll get them elderly of vet mean, to these with getting to to the forward especially KLV on get I retail for But surgeries utilize the KLD that. about and like two product the assume to gain have that lot do dogs a to how to with did to traction sort strategy to patients well. utilize reimbursed and be market, with are positives to start identifying know that I they’re way of I the what’s vets a really to to or vets or those vets. as I the now their So start stuff partnership has of be get going the know conference question that way best traction that

Joseph Mannello

So There’s thank to you a Thank for quite Steven. about few go ways you, the that. question.

target some example, have And with ask we he’ll the you a why dogs do on products for that vet a be aging to As know, topic. Albert consultant, the Ahn, from benefit we Dr. speak him who’s And he your can community relations, for or – we outlets, with things dog. public – veterinarian. Fortetropin we’ll different where

this utilize that we’ve vets. open what to we that we’ve that we that is there good publications, ROI ads new do talked – community. advertise had vets on or a very We information? and so feel in Vet or you products from and very News in is stories for reach – out And in that a new see. Practice said, is If good focus and and public, And if if what digital media, any, put that publications vets to look then any One very, rate. we we very,

rehab trade someone There’s – rehab a just We in And vet We there’s the did they and there’s then their a specific the group Orlando. a surgeons very publications, have trade vet one I mute Could that down a we VMX that’s there’s there’s do shows. – and holistic know webinars, big So conferences. there’s vets job. surgery, of phone? don’t surgeons big have please publications show. vets. there’s –

So really vets. Ahn, Dr. targeting between how are conferences, we webinars and that’s publications,

XXX-dog news bad or if study. traction have put is very study very, that, would the had bigger published later this we we is But lives. out we’re do – large it probably it The good it published. a company. results public is is of later. The There be it can’t a We gotten we study a news

to going through continue So I and social the you media out. other all about tools just those told get to word we’re

Steven Maide

forward. right, Good That I Got thanks moving All appreciate luck question. sense. makes it. the for the it. with quarter

Joseph Mannello

you. Thank

Operator

questions there I’ll Ladies closing further this turn are at remarks. back time. for and you. gentlemen, Thank to it no management

Joseph Mannello

Great.

invested and do we the thank in last all, after still who’s about as I I are very moving optimistic And again, picked I that the end in we great and getting we’re, transformed, March or has really believe, very where where hit sometimes ourselves in First it’s out I life, we’re very, of going. our eyes. quickly. the company I in between direction. that in of year everyone here. whether the look get I was And And direction We were want to results said MYOS. been anecdotal as think you right forward with to up right studies.

were to a free the or Thank on or we’ll you your So well, being me that questions please call and you. I questions up stay feel there you please that all talk had e-mail and call, again give thank stay if tomorrow. me family, safe, come for and soon. want you to

Operator

may Thank you. Have This a day. disconnect. call. today’s parties All concludes great

MedAvail (MDVLQ) 11 May 202020 Q1 Earnings call transcript