Earnings call transcript Q4 2022

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Operator

Hello, everyone, and thank you for joining the MedAvail's 2022 Fourth Quarter and Full Year Conference Call. My name is Doug. I'll be your operator for today. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions].

conference recorded. this reminder a is being As

I to Director your the pleasure at you over of handing host, Advisors. go now Please have LifeSci ahead. Steve Halper, Managing

Steven Halper

for all Thank call. in you participating today's

Financial Mark are Officer; Seabaugh, Chief Joining Officer. me Doerr, and Executive Ramona Chief

Earlier ended to MedAvail December press A of company, Inc. XX, or fourth quarter release referred for the on website. financial XXXX. results the Holdings, the is and today, the MedAvail as released full company's available year copy

I'd remind addressing statements statements to management that Securities make begin, pursuant are that we XXXX. response in call similar including Before statements. predictions Laws, forward-looking performance Harbor provisions of call, statements statements like made Federal to or your the to will of you within meaning or include during forward-looking your Private of the to this which of the statements or Safe future in this Any responses Securities expectations in or that are Act Litigation relate questions results or events, contained Reform questions

and current opportunity expansion, expectations based upon expense the are growth including and adverse various services statements, performance, the operating estimates those or or All financial our for effecting in on trends including to reimbursement, operating outbreak expenses limitation, inflationary including of impact relating and assumptions. of concerns margins war financial for and as liquidity, effect those future pressure, hiring, any management, market XXXX of organization Ukraine, of without COVID-XX, revenue, events in macroeconomic the of market and the industry, our impact and general such including, in conditions, the constrains our gross and guidance developments based forward-looking

such them by should involve should that on to performance. forward-looking these and actual you statements not future Accordingly, statements decision on these risks or implied with statements making not risks those from could without an considering forward-looking reliance in place investment events cause anticipated do and guarantee rely uncertainties statements. the or material not Any materially differ associated results and undue

description forward-looking as and conference we Risk This associated list section which recent of business, and live any Commission. other and reports Form broadcast on time-sensitive the new uncertainties to or market revise XX-K Exchange to a MedAvail contains the after because the report March information, as law, most in by or or file any and to periodic please with of annual our plan except XX, today, of only including whether and Factors information filings intention risks the or our close our For tomorrow accurate update is statements, with call future disclaims obligation, refer events XXXX. required projections financial the Securities otherwise.

with that, I the call And over Mark. will to turn

Mark Doerr

remains MedAvail, the the us fourth MedCenter for of January MedAvail, the you, joining to And to you quarter our proposition includes Thank and thanks and announced all full the afternoon in Steve. software proprietary Med shift our dispensing Technology year from emerging The associated and our kiosk, update. Pharmacy core which XXXX of for XX, Services technology underlying focus the business SpotRx On our company. Dispense business. Pharmacy of financial value for this operational

or solutions model, Technology to provide lease Through under order of to in the the own license Pharmacy partners inventory. MedAvail business, partners ability and own employ staff their dispensing and In technology offer procure brand. MedAvail their the to software own we purchase MedCenter their our point pharmacy the prescribing

an prescription abandonment the the and care, at therapy, point medications dispense trip to of benefits medication easily the to initiated expected providers enables following additional with the pharmacy. patient, Technology appreciable avoid to Pharmacy MedAvail more reducing

is delayed patient designed current and to technicians, in The MedCenter pharmacy pharmacists worsening which restricted both to a is suffering resulting and are provide of or pharmacies medication. Additionally, shortage access to patients an quality minutes and pharmacist needed. average through offering dispensing five to with access expeditious convenience seven live times while that barcode enhanced and technology, a integrated with safety when

are discontinued incremental of SpotRx need of us will compliance, showed a prescribing revenue. of clinics improved additional now associated our experience Pharmacy this for dispensing, there and and such going ratings recognized benefit type with as from benefits pharmacy What we business medication to offer that is point of corresponding quality reimbursement medication solution. There forward. the Services to convenience be the potential The demand learned material

required was approximately led this our team from and and to to consecutive two years XXX% Pharmacy it the decision And the SpotRx scale beat Services set for management business. market significant however, and revenue grew our low pivot expectations resources margin. SpotRx cash further The business away since joined. value

importantly, we margins, is sustainable, significant better our business business aligned of is the a that targets and potential. More technology with believe growth healthy

technology identified new develop the when But Pharmacy business XXX% Efforts for grow business several success. projected Services. we Revenue indicators to the as leading in proposition over and the to team in ago, XXXX. a compared which the without value year of lower XXXX business is business, MedAvail the believe management is have company Pharmacy began in just Technology to solid technology we this the of over joined technology

remaining for MedAvail tough focused two the acknowledge circumstances. to excited thank to target is them. been There want streamline for path. potentially technology of business I Many publicly the in of very industry important reducing are in it has a experience, also The them under the consumer team challenging while on many their work the process will elaborate the applications for delivery. enhance cost the And about our that through later. that agree hard markets potential and I pharmacy want improvement MedCenter. the And technologies I initial

now reduced reduction million, As XXXX which our the is operations by a process, net projected of burn burn. cash headcount we our XX.X% part discontinued approximately including XX%, the of bringing cost over from cash $XX.X SpotRx,

company. that hardware revenue We our for MedCenter expect will upfront generate sales our

enterprise be can sales an timing exact to level expenditure. are they difficult of predict because the capital Although

profitable that was are a approximately sheet. Overall, technology restructuring generate subscriptions balance gross stream. unit recently as a accompanied the Technology strengthened XXXX for economics Pharmacy blended recurring The to million a financing, has by expected XX% business, planned, was on with margin further standalone which has $XX our basis. our completed a favorable revenue contrast, By software

cash opportunities and the Technology which our to to Together many cash us of certain $XX sale today, pipeline pharmacy sufficient proceeds have million from on SpotRx for are cash is of CVS, the hand equivalents with the business. in allow to assets growth that pursue approximately Pharmacy we we believe and

we net cumulative in MedCenters for without As operations. our currently planned dispensing have breakeven reach additional financing. discontinuation including After currently can continuing XX MedCenters SpotRx, believe need we the the equity of we retail

full shipments the decommissioned us dispensing MedCenter recorded the define such additional after dispensing completion XX year to XX field, of is net MedCenters the units, will the revenue units. For and that bring new XXXX by training, and MedCenters dispensing end in net XXXX. cumulative which generating as to cumulative, dispense ready of Note we but we an project that MedCenter is MedAvail, demo excluding and net cumulative for units

MedCenter were dispensing is that net and sites. ready shipped new is completion currently revenue more such and dispensing have of MedCenters We MedCenters. shipment training define than We in be units that kiosks MedAvail recorded to cumulative to generating not of ready to dispense are an which MedCenter for as the customer XXX after included prebuilt inventory previously net

than machines gross operating in the of in results associated some those in with inventory this term, higher the previous believe mentioned already been as We margins expenses. absorbed previously costs near building have our

around to predict in clarity, be next XX% year full margins we gross For XXXX.

can A key growth is our the industry communicate that management leading element it integrate to software of pharmacy seamlessly so strategy systems. with MedDispense

a have care experience significant use sites are delivery X,XXX Epic, across opportunity. with integrations acute a which very growth potentially us fertile in We provides existing completed There networks approximately customer and the country the Epic including including with number integrated integration base, our recently Willow. that with

ability integrate to significant the with dispensing customers' technology. seamlessly pharmacy is catalyst the adoption our a management future system kiosk of to Having

pharmacy over of system. of visibility guidance to these in MedCenters the on we system growth us facilitating also integrations XX are with and our provides Together, new We that course are McKesson's confidence into very future net that XXXX. XXXX. And sales with integrated EnterpriseRx plan dispensing pipeline working out are a in roll we additional integrations management good

opportunity market are our addressable Looking our MedCenter now substantial. business, the technology market at both market serviceable and for our addressable total

$X.X Just taking and focused care are into clinics urgent additional billion, and maintenance initially, recurring on for approximately clinics, MedCenter primary license care opportunity that channels estimated account software an $X.X in annual with be the to we associated revenue fees. is the billion two

for can the shopping at care drug medication care. to Our the between same patients clinics and than of get U.S. XX,XXX make of proprietary that MedCenter, medications MedCenter a is as creating locations ideal formularies, formula. which Urgent differentiation, the point depending more X,XXX for them XXX site our market comprised diagnosis research potential on sites store of experience the which across addressable a for typically clinics total use the can indicates prescription care the one-stop purpose of and tight their have Urgent

with reimbursement pharmacy, injured prescriptions, stock to positively And of to convenient long which for save times, step meant potentially in the or is first-fill not increase this or access patient particularly being added partners. that dispensing Again, ultimately travel medication closed. is pharmacy ill to our kiosk wait to risk needed an endure the having a additional pharmacy impact patient the the having adherence, can

fees only serviceable and to estimated enacted MedCenter Urgent channels Medicare are more only. Program. software in in be for license than to XX care operators limited XX than includes billion, to $XXX or locations the nearly the clinics and provide annual clinics refers same that states Together Primary for they remote $X.X pharmacy is more market Our comprise This that participate XX,XXX clinic sites. the which maintenance. MIPS estimate potential care have million dispensing. have addressable further more regulations two the recurring with

retail see dollars. Long health expand term as our and billion pharmacies, in several by opportunity could markets channels which system such addressable we other

after technology the point, will characteristics [ph] technology believe a Given as business focus the Services primary superior certain compared to our more inflection of company. Pharmacy we profitable be business, margin the for that a

the now to like turn to call would Ramona? I to Ramona our review over financials.

Ramona Seabaugh

outlook. a summarizing and before Thanks, fourth full will touching the I quarter of results with review the XXXX begin Mark. on our year

million, revenue $XX.X Technology comparable generated the Pharmacy For of from representing $XX.X was million, we in revenue growth the total fourth of periods $XXX,XXX. over XX.X% was Pharmacy of Services XXXX. quarter from Revenue XXXX, and

improvement Services fourth quarter for profit, an quarter the from adjusted Total and Looking XXXX gross as compared from expenses period. fourth operating a fourth EBITDA prior Pharmacy million Pharmacy the for the XXXX at of fourth profit which X.X%, total million divisions million, the million, X.X% $XX was being year was division. XX% division, the Technology $XX.X Adjusted quarter the $XX of gross down the representing an loss between loss for to quarter for negligible XXXX. approximately of the were EBITDA $X.X for for breakdown of

turning for surpassed XXXX, million. $XX Now the to as full of This guidance to the revenue XXXX. year a increase we generated million of least year total for our $XX.X $XX.X full represents substantial prior million, compared at which year, the full

for full by Looking segment segment, we from revenue million the year-over-year XXXX. full In $XX.X full the million increase Services the Pharmacy an at revenue representing total million XXXX. of for we Technology, $X.X for year XXXX, revenue a generated Pharmacy XXX% the generated million decrease over total representing for of of year year $X.X $XX.X

the Technology high previous $X.X Pharmacy at of revenue million. in range our guidance million did However, to end $X.X come of our

Pharmacy profit Pharmacy gross for X.X% of the XXXX $X.X gross Services with segment or segment. we generated full for breakdown Technology the profit and year at X.X%, for XX.X% being Looking million,

XXXX full we year average outstanding. had million shares the For XX.X weighted

full have of kiosks full compared course well year XX our network XXXX. throughout as to revenue we In MedCenters. and we anticipate generating standalone million, for guidance the such which XXXX more terms million anticipate indicated, in over we of as of adding XX We the of that year, of our Mark currently growth $X.X revenue dispensing would will $X that year for revenue the exit XX technology XXXX, field, MedCenter a with XXX% represents be the approximately

which a We year business current full $XX,XXX The with average represents between kiosk. purchase kiosk costed our leases modeling year a per of further MedCenter software assume XX%, the for of margin [ph] further current reflects purposes, of is gross higher, $XX,XXX per at $XX,XXX but we well XX%, and per price machine We XX-XX. license mix actual and assume To to sales of maintenance. a assume margin the assist about in blended selling volumes. fully a approximately price excess of

on to the revenue date a yearend work wanted quarter generate will XXXX quarter the report, but providing revenues of their in given quarter is quarter unique comment not to our full next as that complete late Note of us since auditors growth preliminary we complete. this just fourth Given basis we to With go-forward in fourth the a situation. on the is first our revenue be our on as for work delay XXXX. that unaudited excess our quarter revenue reporting mentioned, and quarter, of XXX% puts approximately year is track $XXX,XXX, over said first on

$XX.X balance Mark a or million, of $XX completed that recently successful fees our as expenses. net raised we and Turning gross indicated, sheet, to approximately financing proceeds million of

plus million of $XX.X of have with cash costs restricted in ended the restructuring, proceeds from less cash, If with of we equivalents from including factor in proceeds recent terms our the XXXX net million approximately we $XX.X $X.X cash of forma in cash cash. $XX.X $XXX,XXX cash and In onetime financing, million. currently we CVS transaction, $X.X associated million of approximately pro million,

recurring the need is we time, which believe to fund we additional therefore diluted anticipate XXXX, eliminating at least cash profitability through achieve for We our and equity at potentially sufficient operations can financing. our

overview financial and concludes Mark. That the the back call to turn will I now over

Mark Doerr

higher Ramona. To the value I'm about new sum for you, MedAvail. Thank excited up, focus

operating XXXX, support of company of which And its our and the difficult business and certain This cash our we pharmacy return our means significant we've redirection end company opportunities. that expenses, that Technology exit This to opportunities channels. SpotRx CVS. and of the made the sell profitability. Going consists customer our forward, allowed us to decision to the significantly on on have through investment business burn a business, assets numerous to across focus higher to secured of funding reduce growth can identified we for subsequent Pharmacy the

in dispensing are we believe shareholders. field patients benefit value the track pharmacy clinics both to right of I the on kiosk a our the and be enduring creating of leader while to for

like we'd point, call this questions. the to At Operator. open for your

Operator

Ladies conducting and be Instructions]. time, this at a session. you. Thank [Operator will gentlemen, question-and-answer we

question with Cowen. your We Rhyee proceed Charles from of the have with Please question. line a

Charles Rhyee

units start to for Hey, might sort selling spend guys. think of put assume market understand expected in little to these Thanks Yes. to Are the as the obviously, trying Anything when understand we Or some for have about here, level accomplished taking the the year? -- question, to the we field just get bit this already? opportunity. missed does you this effort XX a it. year, you contracted in all move I of -- that needs to

Mark Doerr

say them Charles, expect and we to about thanks call. this for that joining deploy currently. on for for question, contracted I of would units half XX the thanks are the year, the

Charles Rhyee

where sort is? The other -- is this half, currently you there's has think there this clients the is with or interest been of estimate existing of where expressed an pipeline some

Mark Doerr

no. Yeah,

more robust than much a pipeline have We that.

current yet. just We to with expect contracted expand are have not that also customers us customers that --

says of have that of highly point, XX confident we are line a to that. more XX and the So sight the than with -- this at on line sight

Charles Rhyee

gross would of to XQ would trying that to margin, that's our helpful. about we're the as the revenues the for year. actually something first be how that, ramp just that we be Okay, to in that here year margins or where to margins quarter expect so $XX,XXX sort gross of the at average going then Is of with something see to for in think the example XX% And is full would $XXX,XXX well? even understand that

Mark Doerr

guide do Ramona, want to that? you

Ramona Seabaugh

And expense purchase we starting even that that's since year, available expect on units based hand. those those have margin, throughout primarily to having the having dollars would to Sure. without already QX. additional on to have in Gross we those

using we're cost. So a lower depreciated

Charles Rhyee

be in are of in or of then contracted bunches, you're we -- terms that -- is kind kind in XX think would Okay. going And in for, of sort of sort kind these big rateably there becoming the you to of that put I are the -- the across should fields of of just year guess? sort like,

Mark Doerr

Yes, we half in than the of for this see deployment to would the year lining deployed year, half them of up be anticipate of the second way that point. the at more first in they're the

Charles Rhyee

of way if Margie, start the that pretty I And as then, you've that much recall, Is you it, before correct? said installed. you as can kind recognize soon revenue done to it's

Mark Doerr

start well installed, it's revenue when how the sale, the start recognize that's dispense, that's monthly to we it the both and revenue -- stream. as Yeah, recurring can the revenue when as onetime can from

Charles Rhyee

cash talked year? the flow any about which this you was, about I you have 'XX. sort the know we quarter don't that comment the know through cash if what course enough in made I of of might for Okay. Ramona, think burn

Ramona Seabaugh

But we We and for yet to we'll that cash we cash have generating provided not by do that flow that revenue believe information. have be enough positive. that enough be XXXX time plus,

providing quarterly, think might burn. maybe more about information in our I our next consider So we cash

Charles Rhyee

out, last me, dynamics those understanding Okay. some the with what Street for question other in for clinics And is facilities Have sitting those? just and happening the happening those had Just place? inventory? in What like, the that's for pulled MedCenters in what's and Oak what's clinics been Florida that have of been. all you

Mark Doerr

into on of think majority up themselves retrieved. retrievals. been work such with Street. close, be have Oak month. have and done the into XX% we're XX% opportunity storage there deal be would those clinics They were resale. a still for could do this And companies, CVS placed in that but pharmacy wrapped will back as the around vast for going removed done clinics about that from the put been The Charles. Yes, Probably We have MedCenters that clinics and an

Charles Rhyee

Okay, yeah.

reason is any Oak back question. guess Street come there that's and a be I technology customer? my So couldn't why Like,

Mark Doerr

our being in running and medication Street saw because And back can. that going pharmacy potential more pharmacy contracts. absolutely that or with that's themselves. from key as the having way partners acquisition proposition a having is They Oak larger well as those positive Really, was, a one we the reimbursement impact that in satisfaction in, for the again, partner and drives sign the adherence of the a on based were value customer a CVS clinics partner could both usually Oak be value a improved Street

Charles Rhyee

Okay. one question. I'm sorry, last

original in and point primary kind the market know about In use this an plan sales that's I What for your care idea there care. addressable your Pharmacy? targeting that maybe MedCenters. of customer out force, guys ago market as sort anyone of the slide, total retail sort urgent years you pharmacy and You of base? potential Retail is a Because was of in

Mark Doerr

Yeah, optimizing large, channel over retail scalable have. good would about The that the on well as sales as you've talked really question. are more easily proven our initiatives partners term, near what and value as we just it's I say that we're given proposition penetrated, the channels with based that stated, I our

primary have near represent clinics more So now. right effective prioritized urgent care term. care opportunity we the in and and We cost believe significant a they're

of we retail. primary It the a opportunities not care, seeking, that It's see right that come where urgent doesn't not care we're matter to with us pursuing mean clinics. from is pipeline prioritization now and just

Charles Rhyee

Right.

a have. I Thanks Okay. all That's lot.

Mark Doerr

for your questions. thanks Charles,

Operator

hand remarks. time. at Mr. questions I'd over like back call this closing the further Doerr for no to showing I'm to

Mark Doerr

you our May. a safe. say forward to We night to joined to in and Have want stay call or the webcast. good quarterly again update thank that's everyone just next I look

Operator

your this gentlemen, and you does today's Thank teleconference. for Ladies conclude participation.

lines day. time your wonderful a this have disconnect may You at and

MedAvail (MDVLQ) 13 Apr 232022 Q4 Earnings call transcript