- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the Q3, 2022 ReWalk Robotics Limited Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mike Lawless, CFO of the company. Please go ahead.

Michael Lawless

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

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

on You'll section. Investor company's the find archived website Relations release. The webcast will the information the be available press dial-in in today's in

most made related topics on Jasinski. to press with X, the ReWalk's releases turn archived SEC may And that, ReWalk listening be held XXXX. company's Larry I'll For or Since and discussed, call recent reference webcast, replay and who then, the CEO, the was benefit may those please the the over announcements the of this filings. to so November call recorded to have

Larry Jasinski

to joining for more submissions individuals submissions of have to through importance to our ReWalk Medicare The morning. update system. and a soon with has features have of functional clearance, that Thank completed the exoskeleton we strategic de with administrative Mike. an more the you, as ambulation. stair, first The us the the starting for submitting descend you and on providing benefits private start exoskeleton beneficiaries now occurring MACs in and recently pending novo to case want FDA process. breakthrough the CMS. our our Medicare pioneered experience always of support today Thank submitted the and ReWalk U.S., coverage with seeking Good allow for are have first claims exoskeleton establishment I industry means the ascend contractors, or the that known may public designation In exoskeletons activities the paralyzed

While CMS, unfinished in of process code and exoskeletal part of ongoing under designation of a coverage is complete exoskeletal the systems. is to place the MAC supply submission the the the we now of established category with pricing benefit

unique, the are are Now exoskeletons timelines process CMS specifically new a using not is and defined.

approximately coverage a guidance several in way into public contracts code expect and we led entering has XX or with to private receive ReWalk the the response and some Germany, In establishing after insurers. However, then submissions. days large

application question inclusion since for the later individual of consider for quality forward. decision Court. with the is options the to This been the injury or exclusion innovation better of just the injured community. the with XX, clinical to matters, cord to process will the court meet essential a cord is session from the Predictable indirect While advise larger coverage, also requirements parallel is has in pending help Court spinal permit exoskeleton week possible This their highest able company received of communities are personal provision direct of the system with with compensation our exoskeleton life. benefits properly request navigating interacting and coverage this the active advanced additional on been to several walk In disability the an with a is after This have industry environments it be improvements ambulation. and expected case locations and through and May is has this curves ongoing hearing. their to Supreme moving more ReWalk The of in XXXX. functional of the This and Federal and provides significantly exoskeleton. is process. the improve again a information XXX(k) regulatory to users' ReWalk whether These insurance and opportunities these the November the the FDA to Social review access seeking entities, capabilities and scheduled increase Germany for will current stairs and for has for individuals achieve German spinal additional who to

continuing advancing home our For the home post-stroke, for design both and and Soft community This Exosuit plantar for efforts, program the innovation are ReBoot allows dorsiflexion of users community. technology use. clinic, we and the

back have has designation with pathways. In the are coverage identified we stakeholders, review feedback multiple working to independent on the call concepts seek our the firm a product breakthrough who FDA, details. like existing the now will the and and design turn an all from initial we that help support codes finishers users, presently including may reviewing to I'd the parallel, potential Mike requirements financial payment to market define are While also with and payers. coverage

Michael Lawless

quarter, third reported the as $X quarter in revenues ReWalk compared Thanks, $XXX,XXX Larry. of third the to million XXXX. XXXX of for

ended year. we $X.X million revenues $X.X million of XX, compared months the XXXX, the revenues the as of have to of period September nine recorded For same in previous

to our the institution a adversely training The the to XXXX of of affected due was is of ReWalk number units in some same For the multiple the as the sales important XXXX. timing that note ReWalk the from and in order of the benefit large were timetable quarter candidates. QX, the decisions reoccur sales period of last the exoskeleton a by period for physical results, delays compared to prior rehabilitation QX, decrease lower of year unit that did units. not of Also reflects by insurers coverage in

XXXX, product side, which we revenue positive sale highest in $XXX,XXX the quarterly MyoCycles, On about our of QX, marks this MYOLYN generated from performance the for of line.

rental. commercial Personal decisions new to eight ReWalk we or As our insurance of device QX, our place X.X progress total a look for rental a ReWalk we a at had within to VA and during decisions place new three for ReWalk purchase direct pipeline, device

consists our XX currently our and of number the with on eventual and of the opportunities of cases at some Not XX XX the an Our translate working. on are Germany which cases process overall scale in we will in into perspective every current rentals XX pipeline these in provide - pipeline sale, of but figures case U.S. sits active do in

Turning Personal rising to fixed by was the XXXX, This X.X of covered to margin XX% well devices year's decrease in compared in sales production margins, gross the from prior the is third the quarter. our costs mainly as ReWalk quarter as XX% impact of of the fewer costs. production being margin as by gross driven

by process Authority. General a increase attributable sales about $X.X million for costs. higher had partially activities an due typical related grew took, not the also also prior marketing, on and proxy show which since expenditures QX, Our some proxy offset primarily carry with administrative in from the the process progress, XXXX development during sales-related to primarily COVID Israel restrictions process. extended In consulting of expenses, are incremental $XXX,XXX personnel-related Innovation spending to in proxy levels third consultants year, the higher million were services of and the the to QX compared projects, of Within on The professional being quarter. $X.X and the from higher grant to totaled lifted expanded associated $X contributed will operating the excess we above million. spend as assistance impact - spending into expenses increase expenses year's R&D, quarter trade XXXX CMS activity is this an for

Our $X.XX of share the $X.X share third the or per to XXXX. loss of a quarter third million net XXXX quarter per net as compared in of or million loss for was $X.XX $X.X

loss of cash XXXX. quarter compared $X.X million million quarter or third as the $X.X for the the ended was equivalents in $X.XX to per net with share, debt. third of cash share We no non-GAAP $XX and XXXX or in Our quarter $X.XX per million with

growth business organic a fund We - with which attractive development our can selective resources continue supplement and our to balance pursue have strong growth. sheet to opportunities,

about of call active of With of total have to have in an buyback during that, inception stock, back bought of share initiated XXXX. over the for turn a We we QX the place, $XXX,XXX which shares our of comments. program further a Larry I'll the representing program, repurchase we Since back outstanding. also X.X%

Larry Jasinski

like for I'd last the provide quarter Mike. you, to now detail Thank QX more XXXX. in

are Here key environmental considerations. two

First, is markets which systems. the fully and U.S. allowing both open, and were home now German almost the placement for training

due in sales one the that the to early time cycle QX was starts the of our now is units months, nine final in delayed for surge about As are past we closing year. moving limited element COVID that

budgets systems, and seeing Our are pipeline pipeline some planned clinic-based delay budgets current constrained global systems. for XX home in that XX our capital are The is system we capital products, is purchases.

globally the leads year-to-date, factor, world, our allowed develop environmental in show active many held with a company remained the in the shows and had The years. second meaningful two largest particular, we're Conference major the assessments not been at for restart and to contracts. trade of prior are several [RioCare] The in September, able has which

of to further cases timing follow-up longer let delayed is conclude control Objective that original these, slower each pending ability one, our clarity are beyond we and in quarter. from our do offering. due anticipate objectives of QX. of review year-to-date. expect decisions many will the number Here of the reimbursement revenue, We and year-over-year the provide we of in number to this deferred defined Objective annual a our the revenue movements that for cases projections, limits due XXXX to time. many timing product no of growth at five two, The me QX on

continue allow help our organizational to We structure, of additional can further we pursue profitability. line, to one growth commercial leveraging least pathway believe which product achieve the provide at and

discretion we'll stated future. near the accretive in Objective be our with all the We and others may number technologies build infrastructure that the that are provide category ReWalk that some have meaningful to and reimburse some exoskeleton the opportunities designation three, ReWalk deliberate have on German growth, for us court, each MACs could adjacent affirmed to CMS plans on strategic indicated exoskeleton. each in that further information the CMS and September, offer help also and a CMS focusing synergy. more cover benefit

With as that are eliminated a or If to the An compensation process from to technical in is the the expect will indirect the medical is these and growth. of effective. days. The later approximately A determination session. as stakeholders week, direct basic this deficit a within need. feedback of be to the for according consequences several mitigated underway, determination daily is we court MACs to basic anticipate current XX of life held submissions German and restoration so-called is that and function now court far compensated need state of possible means disability and the functional the case some attendance be compensation we the

Germany. the court's the exoskeletons for the will of supply cover in legal basis to So decision beneficiaries provide

FDA technology device ReWalk XXXX. objective, two for development, is to fourth designs XXXX our Our and applications in goal launch improved

these five, product timing dependent made usability of controlled The addition reimbursement, is some year-over-year was to access, additional XXXX, supply now in XXXX FDA processes for and second the the and to development development, is and million submission number investment on objective due And submissions June the first of $X development. to then and million market submission. chain increased requirements Investor QX, but Relations CE and The marking in $X considerations. an operational launch the of business new expected in

COVID, and development followed able support in have and reimbursement business programs been post precise We and for pursuing have process to identifying restart have on a resourced the access development. market through new manner,

are select We with IR considering mix support still of our for internal a expansion contracted support expansion functions. of and

remains Thanks updates decisions, of this you. and will value. press instructions. to and this shareholders' our each for quarterly enhance with Thank to turn like and patients of call remain the time We benefit for the Because interest highly industry. this company earnings year We to I'd you'd on your execution stage. pivotal other to focused communications. and if please the releases, over questions for via provide coverage this appropriate Operator, the calls ahead go today. at for

Larry Jasinski

at much thank like time. And today. I we that would questions you encourage Relations to of questions, Investor if working you your providing the to if today. time have these this this We our on. company. I'd through for part everybody forward do listened to that to operator, Okay, to no us we've Thanks very reach initiatives look to updates have been very much

Operator

presentation. attending Thank you. The concluded. now Thank conference today's you has for

You all may now disconnect.

ReWalk Robotics (LFWD) 7 Nov 222022 Q3 Earnings call transcript