ASAPF - Earnings call transcript Q3 2021 | Aurora Spine Corporation

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Operator

00:04 Good day, and welcome to the Aurora Spine Third Quarter twenty twenty one Financial Results Conference Call. 00:11 I would now like to turn the call over to Adam Lowensteiner with Lytham Partners. Please go ahead.

Adam Lowensteiner

00:17 Thank you, Gary, and good afternoon, everyone. Thank you for all -- for joining us today to review the financial results for Aurora Spine third quarter results ended September thirty, twenty twenty one. Spine. call CEO company Chad of Financial of the Northcutt, are Clouse, on Officer and President Aurora Aurora us representing today the Trent Chief With Spine; and remind thirty Section XX:XX of three, everyone nineteen course Before Act nineteen this considered of thirty the maybe XX(e) as Securities statements call I’d of the Section we like XXA of that made of of during begin, the statements four. this within meaning and forward-looking amended to Securities Act reflect should, statements future are and and forward-looking. These does to expectations current events absence mean intend, expressions their used not results concerning not expect, as a identify believe, words, but is forward-looking words similar could, such that are may, statements, will, anticipate statement guarantees different performance to future statements those XX:XX cause and other factors not materially These and risks performance that are be from subject actual to important could and uncertainties projected. achievements are or for

Principles measures not future to might are XX:XX factors, information, company's Spine. or considered the can GAAP measures superior to provide GAAP. discussion full of these set of comparable measures measures and a performance. Aurora EBITDA, Trent management Management Factors encouraged recognize non-GAAP may of other adjusted addition Officer in with GAAP XX:XX performance that events or update under including periodic GAAP. refer SEDAR, or not file new addition of which please the forth accordance in similarly be Regulation forward-looking to non-GAAP On figures financial result that Generally to to does performance measures of adjusted For should with release. not Spine’s believes companies, the whether these to company's over uncertainties income the in Investors supplemental those statements EBITDA, turn titled most and otherwise. or this meaningful Accounting now, Accepted Spine intend substitute EPS, in reports not any to Mr. information like a for prepared these and non-GAAP the other documents call, comparable to that adjusted accordance these operational under of earnings With in be net and section. as regarding statements any A a measures Risk with of to should filed to figures and Executive you're read revise forward-looking reconciliation Chief in G Trent, as risks, Aurora Northcutt, President SEC proceed. XX:XX found call directly be I'd Aurora measure

Trent Northcutt

it. few the the out the and for Q&A XX:XX he session give including Clouse, product us. division, of the Thank highlights initiatives of the at new brief result not new as you, twenty will division, on Adam a be our under can be To ZIP quarter, recap summarize results. and we the Aurora issued today's talk XXX:XX is Spine call. SiLO, or third new release, twenty listed CFO including Earlier the lay our www.aurora-spine.com can release. and And but financial a here. to me Then a that this bit results. a on on a some such you've joining website products, events with each had and if numbers. Chad review the about welcome Hopefully, of I'd of products our the first end initiatives release including call He if on let the chance he'll to the copy the to a DEXA my I'll conference be financial today, quarter other pleasure this are a press to the found like detailing section websites the everyone key status financial call, our agenda commentary Pain at Spine platform. on the financial here conduct of Investors one

We the quarter experienced and the starting results us. in from solid overall, will COVID-XX started third review. The demonstrated that XX:XX QX, produced look key conduct events -- to behind issues [indiscernible]

point revenue can While may us quarter sequential slowdown to improvement capital that still areas growth second didn't that surgery from showed be year-over-year Aurora certain as upfront quarter. and additional and of pockets in structure like as dollars. five there's I'd order successfully levels order was key some seen. capital accelerate XX:XX the there. strengthen markets in like industry During business the quarter, raised excited to to in experience companies the up the efforts investments any surpassed third other capital Overall, here and new actually the cancellations for several growth to pop our million and to the the tap clear comments one well pre-COVID and we are in our my products.

our Pain Aurora established offering more The product both In supply clearly proprietary ago of side This now which, from saw has division. we Pain it we in so, was do to apparent imperative add surgeons capital, U.S. of to to And now hire procedures was the Spine the in strategic then surgeons, couldn't prepare To this in we've year of centers. division doctors, surgery the standpoint. Aurora run approach way more our had products XX:XX instrumentation the in effective from and and the be in the management to which of that we around markets put the We inventory our pain those was and direct the sales would on addition, and that demand key we in have kits, -- phenomenon our a products of business. which of manufacturing up new would so products. growing. accounts, offer a commented gaining. new contain sales towards reps more build some plan several an suite of deduct fully losing add also capabilities, growth. effort to with immersive to As much we more more more In third-party If and we hospitals amount a caused the risk infusion X:XX

me a patient we and We the pain, pain was with ZIP performed procedure implant an which is XX:XX and Let biomechanical been are the Fusion. able SiLO improving bit solutions to a and market, their procedures, or pain the Spine that to A often now of be back that SiLO pain and back actually products needs. where patient is area which why offer in back to pain able And surgery. also meet on products a our established have new short-term been our multi-center patients a plan their or sending new to to care ZIP will a because to surgical is of and have Joint have help within the entered SI can is management we it a that of in XX:XX little year this the not and that Aurora we're Aurora’s we system the denervation surgery. show pain a quick a doctors build practices, Aurora interventional continuing now base care such our interventionists coming they performing might in seamless labs, a pain sustain SI patient few even background treat focused a the market proprietary pain an the labs, has pain a market happening manner have market at emerging SiLO to with in outpatient experiencing to into get That pain Device doctors is treatments on evolving where off new allowing on disc pain in or explain addressing final cadaver into for as the and practices market, our prior those denervation This SI This multi-center or a Joint what's Fusion this, is been going them treat starting their on recovery. recovery spine the to this market, need Interspinous it. be study short-term longer pain for more surgery in that now current that it implant long-term system to and XX:XX pain Joint into actually the product, can to avoids have patient study. SI offering interventionists we're Joint to is recovery into and that our and with specifically (ph). patient new the of their part entering take setting an This and our has Fixation step results recovery. with back also assist pain where surgery that the to helps patient have when we the introduced products product.

quicker series allows DEXA product. and to this a in clearance match areas fixation which received patent two. patient's twenty order We product in of will FDA year's density create T-score, during implants, technology. bone the with into the have XX:XX with our employ during last This hit patented advanced two We parallel Last path this studies running quarter. should the to promote development. manufactured first-class running densities DEXA-C, varying twenty and that we year, DEXA superior us technology year Other and patent quarter applied our that new the The is growth. which own retained we have multi-center ground

We key its on addition, certainly, DEXA of and are use initial Aurora this several of now launch XX:XX use the proprietary the offer technology. product products products. security, the end of year. working are and That will identifying In are towards commercialization plan which we before of this

representing patient's complete benefit opportunities leverage be where patient where suited the standpoint medtech will maybe spine. of companies licensing DEXA the are patient outside of for technology the platform from Aurora, the an And bone technology decline help that better this density. technology would that implant to it's a we help world other even for with So,

this next of be for help doctors we've going into year. our proud XX:XX focused we more will clinical and The our new So, we're asked participate to continue and and focused and that I’m around hundred this of over faculty during extremely in impressed to We with team's quarter our overview So we staying labs into us trend time. the initiative year the on some cadaver summarize, we think and performance, dynamics XX:XX two product trained country. next year. this this in really multiple and could studies, turbulent market key going this

building We seeing focused the and our on goals. focus are the seeing year all on pandemic throughout this through company

positioned new new the for for and with financial that to looking the us well-positioned surgeons long proving advantage We our Good are well for results. a and along we Chad these well a that is prices have of products. will out the moment platforms using launching new like positioned Chad especially including as mostly approaches. call growth, studies, Clouse CFO, have to surgeries Chad? products term now and initiatives, several as clinical launched resumed. I'd And Aurora and new as success and technology I'll take new doctor teaching new the company doctors over to the XX:XX take more our and behind products success, new is turn pandemic well for have news more third to is Clouse, and introduce the be the

Chad Clouse

be here. you, Happy to Thank Trent. XX:XX

three continued year. nine initiatives, twenty sales in dollars year-over-year million quarter. zero expenses color. the basis quarter in in expenses operating was point Revenue these investment the basic of of With quarter compared Gross driven nine remain of two Net in one product, twenty in last compared twenty. shipping margins beyond XX:XX two to per third loans zero point third percent dollars operating twenty eight in twenty, four or four revenue usage the six to zero third zero This zero quarter quarters. one twenty in quarter million compared one and of dollars four second margins zero or should in one point and second share of point point improvement point in and quarter twenty. loss basis now, zero twenty, dollars, loan are twenty to twenty lower that percent the anticipate we were point of me has balance is improvement of the levels let building necessary twenty million investors one. more comments the and two dollars third the sequential the progress twenty Net due our dollars, million lower twenty twenty of company's levels and dollars QX to detail in nine due from they in Aurora two million range point per PPP diluted improvement higher in shipped their percent products more in some as the as and gross decrease of areas twenty will as in percent revenue a Proprietary utilizing dollars third revenue our of numbers sequential twenty point but quarter point one. as slightly increase in last twenty in second dollars four enable QX one press forty provide levels which added fees to sixty three one point cost, loss percent the an higher rose was few our dollars a of especially point a and twenty expenses. or products. costs point company September. million highlighted expand insured in was into increased XX:XX twenty dollars compared the received zero dollars revenue focus improved These point million the four five the dollars. was diluted Gross – proprietary the interim and of in revenue zero release, in high one availability, the a four twenty one of point one, balance incorporate one net my twenty seventy QX quarter of EBITDAC dollars the forty zero in PPP year of to twenty on loss sequentially, area one marketing dollars to helped create revenue. Sequential raise the loss secure there adding or Turning Margins the basic third one by strong of ZIP to last in share QX, the zero capital XX:XX approximately dollars of to added third the proprietary like in dollars, one forty twenty diluted quarter products of we on some from the during operating strengthen a million as coming point million and was were and in share five these quarter due five was one month the was could sheet, point of of million products the profit million comparable million percent point five of for EBITDAC point of sheet, twenty million one the one was decisions to funds five million twenty – XX:XX and one quarter a amount second two of XX:XX kits practices. million device. efficiencies. the The continued have, been compared to one basic twenty in or of million proprietary seven the five should that shared seven was Total expand more the point inventory These its products from of QX quarter dollars expenses to zero compares margins one in XX:XX were we twenty quarter but dollars in

additional of million doctors, dollars spine at people instruct use around increase improvement in one quarter. million dollars cities the million in point pre-COVID the [indiscernible] in markets, million we quarter in to large of two coming At quarters. increase mid-October safe pain levels, reflected which training continue educate would be stabilized and and XX:XX end QX. more dollars, seven the million in receivables, various both point prior also We dollars three should has exited labs the with dollars to demonstrate to the we in had collected U.S. in quarter, of cash five the and business of four more capital add How more We quarter, nearly was should revenue nearly the stability in the third to

to collection, improve and are cash our usually within working We sixty current confident bigger to system of been able capture have collections days.

tightened conversation Trent. business We periods. XX:XX that and have as operating in expenses was to the As tighten. I'll back have the been been this operating and our and expenses more are we positioned now believe coming turn recovered stability for growth our

Trent Northcutt

XX:XX Chad. Thank you,

Before questions, surgeries We that are including that from to to we initiatives improve I COVID open also about additional more very stabilized some sales newly company away it, conclude we being like as efforts. from improve move our believe hires some and and to continue has kits call booked the new should we get coming building for plan our up and key further and the I'd prudent capital. inventory, invested making in deploy the quarters, and to

some unique for like along Given an medical as to stakeholders. that I'd growth company, situation shareholders questions. said, our XX:XX With proceed, innovative the the pass to create and call essential that we very to very and opportunity device Adam? Adam remain value our in long-term with confident begin

Adam Lowensteiner

with those how XX:XX Thank team. you, on trials doing help be SiLO questions management ZIP. company? will and and will here update for the emailing thanks some completed and the everyone Trent, any When for the Trent they me you're

Trent Northcutt

encouraged the we're the really study. multi-center and So excited trial, about ZIP ZIP XX:XX

we’ve And began sites over have to selected of collect out selected. sites first six We data. that ten, of ten are

very and on are with SiLO SI that right two to information encouraged twenty twenty a coming as in System by very on call that and begin the registry in now queue that study is weekly -- of QX multi-center the Joint for expect part study study of another as which ZIP year. study. the to encouraged our began registry a multi-center we we're are a early, system, up national had SiLO has collecting by but have our -- is, next and We very ZIP on as we these We that study early we results going that

Adam Lowensteiner

update there the SiLO-TFX, XX:XX product. Any I new that? on of SI is some is your Joint know which version

Trent Northcutt

hands still XX:XX of FDA. Yeah. in It’s the

So limited, and that the encouraged we motivated by can going I I outcomes very but only of this biomechanics perform can tell to that of really that system superior the doctors. is hands well in offer patients and you feel we're on really comment the and the system for

far So the with year, this part of earlier anticipating in we next the on launch encouraged in a with the collected quarter, all we're first or the quarter we're what the done by hopefully FDA. we the so product data and the middle and later but we've that versus of testing the of quarter part familiar

Adam Lowensteiner

only Regarding are kind also Aurora on investors onto XX:XX grasp or own will licensing your other the other platform? proprietary How technology develop should looking DEXA open on with you you And IP? you creating DEXA, be planning to that that products? to are products DEXA of

Trent Northcutt

subsets answer in our going your hips that recognize patient say performing one what’s spinal we is density interventional on. bone to plating bone maxillofacial orthopedics, in and good patient's question, trauma market total doctors a we on the -- it question, at is we other such is health the doctors density XX:XX matters Adam. we're to products procedures upon take patients market, platform. next know not the our market based of products matters that that, the products bone it’s density device of going cranio DEXA those and And can the pain because of structure that that platform. patient to they're that to as true, Equally the so understand knees Well, really bone technology let's XX:XX believe true the with and that are isn't that Aurora, technology dental. density it's products and DEXA we're a a core to launch part that -- or multi And those implants and and we belief of many medical there's core total apply and of and that with their

So, little those see in we a technology DEXA sectors to the benefit of market.

wide that for open on So, those discussions those technology. at technologies companies and are who very our platform arms that for are good

some So are platform companies DEXA manufacturing printing? going of platform the for advantage key additive DEXA style over looking at standard XD is out to be a technology of that hopefully leading are the and Aurora there this that

Adam Lowensteiner

sort could Regarding drivers the these ZIP the products that make XX:XX Aurora and what of would can you and entire for revenue lines, expect major do feel forward going base new the SiLO these become you of? growth percentage up that products of

Trent Northcutt

of from it the see a today we've that percent number. of where we grown quarter Number sector to I percent forty our product So, are that major growth fourth revenue Aurora. ZIP for XX:XX one, the grown is over to product as monthly from has year eight last

this So, the by we product in following doctors all we've led these, year. by impactful R&D, neuro becoming an interventional doctors [indiscernible], doctors two the up and trained hundred that educational conducting and labs ortho that leading performed pain trainings over product is ZIP

currently So, than system ZIP back with we're and we've post over ZIP path prouder forge the couldn't twenty ZIP of growth area ZIP more terrific. XX:XX at this these that percent six the just quarter-over-quarter the teaching SiLO been we're course, product SiLO quarters. has growing of of cadaver the the device, as last the impressive now sort of ZIP joint teaching our of It's products multi-center The side with be with a really seen really that's and implant study we product.

true. growth because the they that because on more This part a training our the heights seen basis and strategy we is that investment really into sessions build, reason a build it's right of ZIP the product impressive product on continue we and product we've and wise the quarter really and going inventory kits, going more courses expect believe we in in why of is can some part inventory, growth I DEXA-C, more side. to ZIP we also with But still if is be as capital cadaver they'll with training is releasing DEXA labs, study. introducing needed So, and and the we limited took reach of and And financial growth new out we the kits come, of continue that those line to support as having good to key the to this twenty that SiLO-TFX next the a introduce two. twenty year release which surgical the and product SiLO the full-fledged we're to

Adam Lowensteiner

can XX:XX that is you quickly trained two? there when year. twenty You doctors you after this And two forward your experience typically training, does would mentioned number before investors happen? do that these train uptake that Is look that hundred that doctor for a what goal doctors, you understand twenty how

Trent Northcutt

a to getting they've all period this a how any we'll up technology capture them with they've on first year. the and it implemented physician, training it doctors information making follow the the onto the first with than what two CRM days of surgeon to about when for There's XX:XX them a and takes how first that surgery with booked closer to worked specimen always is, back and get we more courses and more replicate to to to surgery go system part did us to for get to them. hands that answer the our learned do applies lab. their to products, And year in on we're to XX:XX them that two even see introduced that going systematic use in going it twenty next apply ramp in step works be year are and hundred great what our doctor, Well, they the so depends that that is advance right, we're to the thirty of next -- question this follow-up doctors it and to these on wants lab We it sure it. hundred we back the different the that twenty two and and new for get then help

period, some than longer that sometimes on training the before. our period, we than some Sometimes these it's with have and of it's technologies forward shorter to doctor move going never see of if usually done that is procedure doctors newer the are this but

for them, a have their and new new is practice. for course it's medical in skills, qualified hands but doctors they good good and this procedure them So that

education, on that will So these are center get are their that this have for course in when to or more these to the we products and we there course, believe that we can help refined [indiscernible], so use information And what more steps to get doctors and take, patients. procedure. year is the that based based and doctor some we are teaching focus products information themselves first replicate getting they of what they how of you the did year, prepared and educational next surgery hospital to build with nice a perform evidence

Adam Lowensteiner

additional possibly Are are improvements XX:XX for quarter-over-quarter there? showing Had a Chad. couple of questions here any -- there really sequentially. good improvement Gross for margins

Chad Clouse

XX:XX we'll or think with we're but can mix, in any spine to competitive spine I market very in our quarter-over-quarter I company in the the find competitive market. the efficiencies in any look fluctuations COGS excluding we market the company product little due is or spine think, for -- market any obviously, in

Adam Lowensteiner

in coming were quarters? look expenses Are these expenses levels corporate investors should are lower. the how And but bit the higher sequentially sustainable, at XX:XX little they year-over-year,

Chad Clouse

quarters, going are coming we've the They The that’s believe same got increasing Yeah. could on. expenses are have the study it'll a net and sustainable quarters. coming XX:XX R&D to of good due projects a doctors be the I about and training in with

Adam Lowensteiner

higher XX:XX And and such you the in the this rollouts, and profitability? clinical these at – improved quarter, hires projects, how burn higher company low, until was new cash look cash quarter enough does see -- was have fairly third margins all sales investors studies now reach much product burn to should obviously, the throughout

Chad Clouse

this at point be I to believe XX:XX will on training think expand complete and that pull our we to Yes, doctors force. off. able I Yeah, we projects, our have cash hand sales enough

Adam Lowensteiner

good. it for remarks. Trent, off that here. Very XX:XX to concluding questions I That's all you back I the could have pass

Trent Northcutt

XX:XX Thank time, for you, Pain Aurora We Adam. Well, interest you and in thank your today. Care. joining all appreciate Aurora Spine us

for very of We forward in are us what's speaking twenty coming look ahead in two beyond. about to excited the many weeks twenty ahead. and with We you

Operator

conference go ahead, Excuse XX:XX sir. now is The concluded. me

Trent Northcutt

and always everyone Lytham to feel If and Adam feel of and Thanks to out happy follow-up Chad we'd the myself schedule great I’m joining for to Lowensteiner reach there's day. Aurora, please XX:XX a have free reach rest Partners free out call to sorry. any calls. a be questions at again your to but from

Operator

The Thank XX:XX is presentation. for attending you today's now conference concluded.

may now disconnect. You

Aurora Spine (ASAPF) 16 Nov 212021 Q3 Earnings call transcript