NXTD - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Nxt-ID Q1 Investors Update Conference Call. At this time, all participants are in a listen only mode. Later, we’ll conduct a question-and-answer sessions and instructions will follow at that time [Operator Instructions]. I would now like to introduce your host for today's call, Gino Pereira, you may begin.

Gino Pereira

Thank you very much. everyone. afternoon Good joining for today. Thank our you call the going for the discuss give general progress unaudited XX, Nxt-ID's results operational a of the on and financial update off. three and We're XXXX, to spin months March ended

take on usual update call few payments financial for calls review in results, on begin care and of a Please turn we undue With factors future and Washington, making materially the underlying the President and Financial beliefs, Officer So that Pay an consists that any reliance statements, update our that in projections goals, note including identified to over by confirmed are Please Health will of and Revenue Officer reference undertake Officer; Operating expectations, should of Chief we'll Care our Head statements, call and not cause PartX; I including our such information, the actual be Health spend which from to can forward-looking and and Chief cannot forecasts, law, forward-looking except Division. as and existing the number SEC discussed during other on to our Mike from performance our the that statements no and results differ the that are call, will place me duty we assumptions and today statements, for our call. of required afternoons by Vin morning's call of recognize statements. and forward-looking to be is the Miceli, released so them. you Chief any filings. the statements regarding there and analyst earnings Orlando, Vin respective, slide today will Stan as on Fit factors Mike applicable our

going this prepared that care gives, reflects of our now continuing purely you and So on by discontinued business side off. site as activity spin fintech are financials classified our health we it the as a a to are as are the operations basis as

delay to this previous base strong pretty strong, for the public products the which the into were the quarter shows so revenue analyst year, below revenues same three forecasts, and retail with the slightly the that was month-to-month last to that income new partially year the of slightly first gives be to look The it the about So very performance as have due will in of a results lower our first into first place. were year, we similar And remaining. year clear up. months though introduction to business compared fluctuations that's period XX,XXX the for also continued and early market

they to take So spin all little up. a bit

see quarter for was as have growth second some the much to we a half the in some April stronger strong products expect and innovative and However, to are the marketplace. being the year we that introduced new last us month revenue of

term debt -XX Form items the register a need a a which registration the PartX statement that off. spin company. off. As public completed refinancing, spin-off as prevented is And us number with we've SEC filed far we We forward concerned, covenant to with as from to a removed the a restricted finalize spin moving of the completed the project

PartX. interest need and will to from shares proportion for received for Nxt-ID we've entitled be in would the to which clearance a own date they in for date a when they So shareholders, so on we the be record entitled SEC to be to they by distribution dividend once share registrations entitled know equity able statements,

businesses to combined FinTech I it to Vin both will value the exceed think first over as operate separate of value to we like before, believe businesses As we are the entity, is that, those turn with currently the and suited in And the that Nxt-ID. on we the to healthcare that Miceli you would stated quarter. and of that better both update

Vin Miceli

afternoon Good you, all. Thank Gino.

I the press summary we in going going to discuss quarter some you in of XX-K go I’m have the first so the a quarter. in first I’m release more the be to over think, So the to consider just what format, highlight

for increase a from volume revenues offset in three in the operations primarily So on QX XX, attributable about primarily XXXX margin sales mobile in in by favorable shift versus per have to higher came $X.X cellular a about to profit is sell $X.X product in The margin from company's for to products, strong XXXX sales terms at to part in be of unit of The mix was million, side commercial shift the revenues period. slight the land price came gross XXXX attributable and ended in quite business, the LogicMark's XX% in decreased period, the mix. decrease on based March basis. million comparable continue revenues, the sales the typically continuing in the XXXX which months comparable favorable compared in our the to gross products a XX%

a Our XX, is the operating the ended versus months above operating before three about lower comparable the in loss just loss XX, interest the ended period, for months had the for to at The comparable XXXX the real and compared in months of three just margin current in to the income was gross expense XX, XXX,XXX XXXX $XXX,XXX period. we for attributable totally three for May came continuing higher XXX,XXX to term XXXX XXXX ended so compared And the to Operating under under expenses. the QX operations March XX, from XXXX again, decrease just March at $XXX,XXX in $XXX,XXX under reduction ops expense for rate XXXX just refinancing. in the profit March improvement. the XXXX, three continuing came the expenses under ended that $XXX,XXX attributable compared months the in at Interest in the came net versus increase were just in there XXXX by They XXXX $XXX,XXX. period. facility the were comparable for to borrowing slightly down the from place revolver March and facility down

sheet, on look, to million. we position our our pretty operation asset discontinued the assets, we $X.X were with in balance and excluding over taken quarter at with of change closed in XX/XX/XXXX. a about Moving is where long-term million $X.X much par everything current cash No real assets

primarily the came end in current In a March quarter. of bit higher inventory at and terms liabilities, of little up to some for liabilities the that excluding the of were our at million account, about end $X debt due

of held end terms our $XX.X debt debt constant XX, balances March there. And million In of equity from no $XX.X million, flux year at through about lot end, at XXXX. pretty year so real a in changes not XXXX

cash That really Moving in XX. under encouraged from actually proceeds we're was the the quarter, bolstered first with coupled for received about over at cash we us, cash flow our in operating by and which flow, to sales March the generally position ATM stock for the quarter really the that. $XXX,XXX real positive first

back And Pereira. to over Gino so turn that, with it I'll

Gino Pereira

Thanks, very much, Vin.

and that Mike have Orlando PartX there. would catch Mike. going on and have us Fit we next, I like Thanks So things up Pay on to

Mike Orlando

afternoon Good everyone.

due of for versus revenue So discontinuation XXXX. the sales $XXX,XXX quarter was period fully of decrease for the to XXX,XXX previous the The to payments position, for QX was WorldVentures. product

the versus higher actually that loss our the period build. software period XX% same really year core anticipated, core what product last due now had high of gross margin the activations with is a on really base. than and from delivery for XX%. revenue is and platform XXX,XXX of of customer we mix that based we've And our $Xmillion the applications to net So seeing device saw we're the for We

In four in launched terms business of have now the we Discover networks so we've platform. on milestones, January, Network

in able limited, the shipments inventory contribution arise launching that of beginning the the later of more QX geographies, our we're pretty more as that specifically Switzerland product this and expand Swatch expect towards Pay to are devices of and some we those Due good to revenue of seeing in and flip in see and timing Core they're Garmin in quarter begin to was the up and with month. which activated announced end also Swatch price activity with product business And in to Pay not devices metrics We're there now. we're selling good we the throughout activations year. they're $XXX that We to for of shipments measure selling the to Garmin devices, XX able models of ranging then lastly, from their we markets this $XXXX. but points Europe, March.

is in And and so which really where gives selling customer wide us Garmin to product the Pay base, that available. Garmin a

countries of of We banks have our which to in have footprints and number coverage. we issuing XXX XXX, to the increased

and increase as over platform as issuer in as geographic activation and our period of result Swatch, a devices the So launch XXX% this coverage, year-over-year. for well of supported increased the

So that, you with give seeing we're growth I excited back will about and activations. And what the and Gino. really we're continuing in of -- with the growth that platform it to market

Gino Pereira

for on over and Mike, Thanks, care an to, Stan update Washington, health businesses.

Stan Washington

Thank you, everyone. Hello Gino.

again the we're by $X.X continuing a aggressively. and you've product mix the are gross the driven down increased pretty agencies flat percentage The heard going and product well we year-over-year essentially cellular and in revenue channel expecting gross our And other are This XXXX. pursuing our continues our or very for at slightly LogicMark be is government government driven see to healthcare momentum and for X.X%. slightly margin was million For margins X% perform the for within us which QX, was down through was by QX, devices. based as to VA, business land remained outside and over VA, to year-over-year, of we up penetration deeper growth this

reach state We local government on bring the in federal, bullish to agencies. we are additional increase our contracts, within believe opportunity very will which and

is standpoint, and Operational channel additional our also launched marketing outflows. expand drive continue our increase continuing have partnerships market more and retail level And of to with testing satisfaction. to solutions. exposure segments with innovative currently we're Walmart.com a development and product customer high manage we from continually are sales Walmart strong serve to costs to pipeline continue development efficiency there campaigns and business Our to

we've solution in developing in process of discussed key previously the market. we're opportunities As other

channels we're such So testing new doing estate. in real as now

on our in are and move strategic is Gino, lot drive moving thank we begin process strategy of continue mPERS you. development will particular the in to our going for with to expected areas other This opportunities the platform in continue forward segment a beta to to the strategy are in help this looking us mobile further. segment, opportunity hospitality key year. testing forward. well in this to push The of partners as We drive QX

Gino Pereira

very Thanks much, Stan.

now. questions think we analyst can it I turn over to

Operator

comes question first Our the from Instructions] Kinstlinger. line [Operator of

Brian Kinstlinger

four last of changed? prohibited the been I in quarters, In you've Has the last what and couple this percentage? talking $X chance quarters as big million revenue. as figure in remember around that or five that roughly about growing from XX%. And

Gino Pereira

growth we is a device cellular One single a very that drop- quicker actually of off But -- total. I the we that we think in And and the lot seen well. so expected what than has VA. things we've that’s what come from a seen, to going seen of that's the our sell actually

on going for to So, recent have seniors, land increasing in they're to seen adapt happen that an slower rate are But lines more off we a away. we're aware technology. slowly line. to It lot new quarters, of land seems drop because

not doing products the in pipeline great. products the have the out are to But in address So the XXXX that. are are we well, midyear designed coming are that doing as that products older around

XXX. Wi-Fi home version, had to longer no a give going will and flexibility we have be a is offerings And obviously there will land lot just at the than calling solution cellular that expanded more for are So on lines. which seniors

the very So technology. those address product that close keeping market. the are And produce also very once will are that quickly up they we so think will pace that to we XG, have believe pipeline that in I with we wireless in that devices upgrading our results have are we

correct. we're products holding happening our quicker that off dropping are So we not the newer doing are going we own, have little introduction are the but products and is all well back, what's a

Brian Kinstlinger

it a as return head the half is say to the to landline the year year second next business that offset growth. be plus the So in reductions in we XX% of fair into will

Gino Pereira

be could That could put our new hard expectation. higher percentage it we're is low. little to expecting growth a It's But meaningful it, with be it -- these on a projects.

Operator

to I’m showing would instructions] back further [Operator turn closing to over remarks. call no I the Gino now questions. for like

Gino Pereira

point. Brian's on to Vin So continue

there's future meaningful think as with I it company. the as And towards two strong the spate in well very major bank, exciting card an of credit there companies. front spin-off one to stones in company preparation things; as relationship for continue think operating the fintech has they I it achieve

side, On company for devoted expanding the the the forward using platform healthcare we've that we into the what to the which is and right more these now are new have lot about business, base most solid in of And will developed both on as were healthcare that verticals into. business a VA, into resources verticals. take and A our products be of we entering new the new and products should we're it being scope of out, XXXX. be excited very

year, But revenue for particularly optimistic year, we products much the we're second the We from new introducing. So second think latter expect the the of the company. to stronger effect of half growth. remain increase should we that and half the quarter some show the see very

that, so we think joining call. and can I Thank you much with have. And all end that’s for us we very the

Operator

have Ladies wonderful and you thank day. call for participating disconnect. may Everyone, That a concludes today's and the conference. in you now gentlemen,

LogicMark (LGMK) 16 May 192019 Q1 Earnings call transcript