RWLK - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 ReWalk Robotics LTD Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ori Gon. Thank you. ahead. go Please

Ori Gon

of is Good quarter Brandi. ReWalk's welcome ReWalk issued today's to Financial This Executive Thank the morning earnings morning call. third company call on me XXXX a and Investor can press Gon, Jasinski, ReWalk and a release the This Robotics' months press webcast Chief Officer, Officer. you, results Relations be September ended of three detailing the with financial call and accessed and the through XX, Larry is Chief section release this www.rewalk.com. at for nine Ori XXXX. website This

the materially filings those noted intent performance. those ReWalk's be release Actual Before and statement and considered are forward-looking future company's of after These the would made forward-looking I shortly forward-looking completion statements. to forward-looking will express statements management as events and like any conference of replay forward-looking today's everyone telephone Reform the disclaims may call. or by call required that or of by that projection, available we ReWalk not as regarding SEC. morning's Such results statements get Litigation A Securities differ on expectation, the press to performance Including a today future and risks in to available may update started, statements in future belief, this projected Private are remind anticipation Act. uncertainties. based intent information on defined involve with guarantees this from forecast, statements, obligation ReWalk specifically any these law. as call except of be the

The www.rewalk.com. information will in You the available webcast will archived company's be website find today's press on dial-in release. at the

announcements and those discussed. the made on the be ReWalk recorded to call who November held was replay the or For may to XXXX. have XX, archived related then, topics webcast, this Since of listening benefit may

I'll that, And over ReWalk's releases recent turn CEO, and to SEC So Larry with the press most company's reference Jasinski. the please filings. call

Larry Jasinski

you, morning, Thank and good Ori, everyone.

continue moving review In Procedure and Our to to the In Germany we accreditation at a market formally X, additional and took the expected, insurers are are supplier fundamental saw United quarter progress as contracts. in Medicaid full CMS with development KXXXX achieved processes. and XXXX. direct forward was the on level insurers the parallel, Code and increasing positive U.S., very the to trainings third approving Germany, effect CMS be ReWalk issued results an and in through Medicare in States. the In October with be

of with by limited Regarding we or our ahead, QX awaiting and limitations factors outcome of by revenue, completed as payers current well pipeline mostly and look a environment. trainings the in by under delayed When The processing during as we COVID individuals market encouraged to the due limited access was variety growing were clinics, are to QX $XXX,XXX. process supply.

position We proceeds the in our gross strengthened in $X million of July. have also raised addition financial we with

be and year in by paid working one, even remaining original more $X million there are so contracts less would XXXX. than debt be down long-term Our essential $XX were X% QX to over several measures. Operationally, costs and off reduced paid have although of quarter we are continues Number will prior operating now completely monthly we the which our million German like.

awaiting trainings active and have final that completed we XXXX XX, September are decision. five trainings of As

the German our interaction to every local the to contract have move limiting found of have training expanding in week. expanding with and insurer. first large with administrators. Number payers been we two; processing achieved a home address paths and contract using pool as will private getting direct patients also for that are We training. are some training limitations contracts forward in the and is with we clinics There we COVID have

be Medicare This provider The on for code part X. of discussions three, function on issued coverage help public October October agreements. position. several this in detail our on on and Medicare XX. and contracts on we the effective groups. others To the U.S. authorization This Medicaid additional Two the U.S., smaller four July a HCPCS extensive data to very and was our of Public Services issuance, groups our in achieved active from National publications, previously CMS then demonstration code. the for submission are attentive these statutory to XX announced and and build on successful a Number built to join Medicare Center was are Compensation roadmap groups establishing the historical we Workman’s in as are looking code became

expanding we’ve the In of this pandemic access until interaction product team it four, focus and base newly Medicare see month have pipeline from that infrastructure. three we returning as this to We with the of is ReWalk on elected we had to conduct done COVID we month directors that and of lines. the prepare major during October, BME of the demonstrations building MACs for initiated Number customer who and the now customer September. expanded and more March medical in-clinic relaunch our are for result a to able administer and maintain Medicare As begun status, structure than Contractors Administrative have Medicaid lead National commercial the our developments entire the plans. to

access slower almost robotic of believe upon to the we this the of standards rehab reopening While of clinics able that life. clinics is the we a creation established and is these to develop and see that this safely has managed team driver solely by emphasized will everyday insurance we reimbursements. process economic market effectively limitations, It’s expect guidelines centers to be carefully and and our new use dependent Last I technology in technologies that see continuing present data-driven. quarter, multiple

very bullish this now I’d association in turn we like about remain coming occurring We for the expect over the with our to details. review is a expansion This the the the policies of the prospects somewhere demonstrates that to follow from Ori? quarter to quarters. economic perhaps. call German financial Ori U.S. shift and and

Ori Gon

Larry. Thanks,

million was to compared million quarter, year in prior lower to decrease the $X.X quarter. The $XXX,XXX revenue mainly compared quarter. year this a hold QX to Our units number prior due of is the

new converted in have During ten represents Europe, single received rental our quarters. which quarter of prior Europe QX, a approvals in units in we highest approvals and number two rental from

MYOLYN home placed In addition, device. quarter this we first VA our user

was we total end-customer previous personal to U.S. the XX quarter to the Our our Germany the population from in cases XX of is end of in stable XX in demand product. compared the pending and the SCI XX them X.X of at quarter, number insurance have This shows with

margin quarter. remained Our quarterly XXXX in to gross compared prior of year’s was the XX%, flat the third and quarter generally

the in for a $X.X expense with previous where completion the net commercialization decrease million of development higher loss $X.X we and ReStore loss the spending million million quarter we quarterly the quarter and quarter. of On million, to main recap in our side, third portion $X.X the third a the quarter, had total XXXX have The invest efforts. net compared $X.X XXXX. this compared was our results, the the $X.X to our quarter the reduce the of To of million third a spending compared operating year on decided quarter prior to of in to R&D in was

like a net third quarter turn in XXXX XX, Larry? of of in million some as cash to XXXX. XXXX. $XX.X With net of for that, and short-term September $X the was non-GAAP loan I’d was our to million compared back the the for remarks. loss million, balance and long Larry third $X.X loss non-GAAP We million call $X.X quarter quarter Our ended with to the final

Larry Jasinski

Thank now results, you, objectives franchises compared four for to close our like of second discuss of to reviewing and our the Ori. by for the I’d half product XXXX. each activities stated

been actually been The financial positive. these what and like The by the governments from data because allowing actions The For over the and these in home codes have disappointed the market the data, the only both well market few and system, we a and I’d walking and walk those are The policies factors back again could issuing community step has disappointment now to expanded been and limiting reported significantly to primary about coverage more. that six potential contracts. past together of and has path and in experiences subsequent meaningful get to recent the supported systems captivated able penetration. The review market of believe ReWalk benefit promise community achieving paralyzed has contracts markets. very years completion are that the the walk and and insurers. walking by data of and

set insurance are applicable up-to-date coverage patients from as $XX reference forward, and XXXX market For rate. in about with range accomplishments the These in information along revenue with in now of and acceptance been true policy and forward place. tedious reimbursement achieving Germany already has step sizable parallel, goals system building and Medicare in The in in moved are has standards the with of U.S., achieving these the CMS and commercial if are markets has similar potential market a of of U.S. development next a Germany the code the they the penetration annual detail Germany, in the this on coverage VA X% lengthy. fashion most a we implementing. established market. on the has million coverage The in examine

the process the MyoCycle the in systems, two and ReStore exercise all for finally of technologies. the Now active become glove, of for as of portion looking regarding a they’ve with the and relaunch to the we were MediTouch able our community launch engage clinics and leg the arm balance SCI at October

National products bundled some in We U.S. in for the these and the offerings. are each the finding for EU cases interest in from Chains and Account of

of clinical call, these presenting past over forward and provided of and the presented QX half look our second ahead. objectives six able value for previously On restart more weeks. have of measurements these We in to the each the quarters XXXX. to been six We we franchises

Number status. one, is in contracts expansion our Here Germany. of

We to additional and have contracts four expanded two presently negotiated. QX in effective being five contracts have from

or than code was accreditation number have formally QX, Here we achieved as established progressing are well In goals. we per CMS progress better our as planned. the and stated two.

done We local that the pricing will Medicare Contractors materials pricing the we for time informed and also MACs, supporting submitted with are to due be the subsequently for being. Administrative COVID,

for we on we XXXX. to have, these of due for of first a met data have cannot yet goals with initiated have and we expansion and data that that where coverage interactions are ReWalk. As result supporting have contracts we timeline our of or We satisfied level of the meeting half scheduled. three, steps the second the now results forecast any prior Number

of injury data relaunch of and and of have amongst of data evaluations data formal for and ReStore. post the approval users’ ongoing we on before considerations six will for to of review presently the data sorting underway to was are will contracts. are years pre future medical we two U.S. SCI allow build original the of in the result with and in and will regional four, able We future was pre-SCI and economic upon review historical from for experience records will Number examine a analyzing UK and ReStore chains treating the health effective the progress the again. of has in and continue and ongoing – evaluations new experience data. cost and of in of it to the ReStore. These the multi-year Healthcare with This publication. gained provision U.S. hopefully access our user studies period IRB and data five, in Number exoskeleton, the building data, an have of This XX our received study about exoskeleton and users walk sites expansion an after post-injury. national

less potential have the placements The little to appears placements in the growth XXXX in realize for processes of based to XXXX activities ReWalk and is accounts for XXXX on market MediTouch as be the and fully industry. but the telehealth. MediTouch. We through in comp longer of goals progress excellent achieving presented and The XXXX weight, product product growth. The XXXX; rely substantive pipeline; growth an focus we is to careful it line financial take must had we and German pathway the start where of have data have for process. October our three We ReWalk the amount and by through capital product portion a management; reopening present for our outcomes important offerings lines; We light have see exosuit achieve combined are encouraging, on the growing in The and accounts. these in volume, with the XXXX should may of begun end contract We gaining key larger a for particularly in VA breakthrough, of growth U.S. recently to this workman’s potential, with our match will trained clinical anticipate six, current home placements them chains the building in with new the technology. a comp MyoCycle to the expensive the this CMS number will product We be it VA of them technology the compact, achieve get first the allow due of workman’s groups. segments. a company placements both to significant Number recent have again. MyoCycle. that in our now work and placements with has package the telehealth field MyoCycle It’s now still measureable work and excellent new

of other this interest operator over is to as open at please new The I’d managed ahead with the the Operator, the time like stage. clinics COVID turn go today. instructions. growth your as to lines questions to are controlled. and for actively you call technology Thank for and

Operator

from [Operator Instructions] the Kane of question H.C. comes Wainwright. Your first [Ph] with Sean line

Unidentified Analyst

taking you Hello. for Thank my Hi. question.

Larry Jasinski

Hi, Sean.

Unidentified Analyst

Hi. Yes.

has shown been amounts? have was there the us dollar with been code right. standing the – it it’s effective you now is So, it – - If hasn’t

Larry Jasinski

The code as effective Xst. of is October

a amount, that be made dollar complete had looked not is to COVID, in similar submission, a up to set due cycle the it yes have So, they did we pricing. The effective. which

So, be a pricing will with MAC. they have local left us done with

and the So, the individual pricing some on meetings each contractors of Medicare up. are of set work the us will we have those that with now

Unidentified Analyst

see. I

it you we code the anyway? payers, are now investment is helping progressing CMS that are how Is as – talks the private have So, effecting.

Larry Jasinski

not short-term the affected In it greatly, I would us has note.

all support is parallel move has we as Some follow-ups any in to with of months of the to our and we specific But the with accreditation payers as been issuance everything try haven’t for well to up the specifically of with which few aligned, to subsequently. contracts focus least the code, payers we’ll supporting doing towards similar with get past CMS are did private payers done going important working immediate very yet. contract. that these private be the set But CMS. with And materials at private the

Unidentified Analyst

I see.

what – your relaunch So and prompted is respreads. or

entirely event ballpark it’s for So XXXX a a like timeline that? do you have

Larry Jasinski

We’ve actually started October. here in

Unidentified Analyst

Alright.

Okay.

Larry Jasinski

Yes.

are have our fortunate national So, a been more little we’re we the and that – we have product has broadened accounts. initially and accounts focus

a product national have for we the So of brought have in at least that chains evaluation. couple

simply During – any were are taking we the COVID technology. not new they on period,

technologies. physiotherapists new simply they stay a their in active cases, didn’t new many holding furloughed products, are in train want seeing because COVID, those on We physiotherapist a with to they with weren’t were because technology, or either

starting year they significant on obviously our be well that a amount here able three of with being from are in lines we product runs growth But were XXXX. we to into that hold next see COVID. So, launch effectively and since those put October

Unidentified Analyst

One you cash a runway and operating expenses last Could provide on one. going maybe and beyond? forward commentary XQ

Larry Jasinski

take would it? Ori, you

Ori Gon

problem. No Yes.

So, cash. with as in quarter $XX.X the million mentioned, we entered

note of This this be couple the we think flow the are X.X, obviously again with You last find the is quarters other expenses always specific and I the side, currently the structure in monitor is We’ll specific generally pretty can the stable that company. see almost little operating X.X it’s loan. cash much But our depending efficient. see Kreos also, current a on that quarters. – can more about and of important are done And ballpark. to we bit if to on that’s segments currently

– we at So, on the the end be cash of side, reduced will QX. burn it

is this something be will with we over So, soon.

operating about million $X.X On flow side, landing cash at cash the see this burn. in quarter operating you

very So also previous and to year a quarters before a you if positive compare that’s that. improvement

future, with even hope can done it So in we significant would we lower. the very take there a we’ve come that the effort and growth

Unidentified Analyst

Thank you. you Very helpful. all. Thank

Operator

[Operator closing Larry are time. Jasinski questions would call like back further Instructions] turn now for remarks. to There at to this I the no over

Larry Jasinski

Thank our on is forward We continuing information thanks today. see us us. where development all operator, finally joining And which look markets are really we of to to going you, are and of important reopen we the these and for providing everybody markets growth to forward. period a in starting

for a thanks time your today. So, great Have day.

Operator

This concludes conference today's call.

You may now disconnect.

ReWalk Robotics (LFWD) 10 Nov 202020 Q3 Earnings call transcript