SNES - Earnings call transcript Q3 2019

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Operator

Good afternoon, and welcome to the SenesTech, Incorporated.

Third Quarter Fiscal Year 2019 Financial Results Conference Call. All participants will be in 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.

to Partners. conference like Blum to now Lytham with would turn over the Robert I ahead. go Please

Robert Blum

the Thanks so will and period today. quarter much, Gary, financial ended On joining you XXXX With today's us September for the question-and-answer today's are Officer. At Financial XX, Ken today call, us for Chief prepared call we Chief results discuss we'll the company's a Executive conclusion company's of XXXX. call Officer; third the thank SenesTech's Siegel, and the session. all remarks, open on Tom for Chesterman, the of

within with we of of Private Litigation meaning the statements: and as course team XXXX amended to of the provisions XXA as Before Act prepared we XXE of the Safe are the pursuant and SenesTech of record amended, of Exchange for Securities of this following made Securities conference XXXX begin Harbor Securities Reform Section the Act Act the made management the XXXX. by remarks, of statements submit call the such statements the forward-looking may Section during Statements forward-looking contain of

and factors the Exchange identified those as with results in may, Forward-looking that or plan cautioned statements statements expectations, or projected as and results from and Commission. circumstances, or uncertainties of the future may generally those statements materially are risks projected. from in the such forward-looking including describe result that multitude preceded draft, such events materially risks in words the could a other filings planned, a plans, are will or to results eventually that anticipates, of should, by are Securities various differ projected expected, strategies statements, or future future, Listeners our to subject risk cause actual differ and forward-looking

company a during of information, of future they management's does on otherwise. conference The are call estimates of such All assumptions and as the the made any contained forward-looking were publicly forward-looking or obligation the any only result on as to receipt which whether of of date. statements update speak events as not occurrence and undertake this date based statements new

With please for the turn to Executive Ken, me SenesTech. said, call Ken Siegel, proceed. Officer Chief that let over

Ken Siegel

about everyone, I Robert. you, areas for target I described last you three an afternoon, out Good business. verticals: and zoos municipalities and government the focus our focus the agriculture. In and our our agencies sanctuaries, commercialization ContraPest possibility on accelerant food talked joining our thank next Thank to I as and call, ABXXXX us. California and strategy quarters. several and and for of laid also singular critical our of

light We revenues would XXXX, also to be optimistic discussed we a significant expectation that are lift that in through continue cautiously XXXX. our but for

we gaining and Three lead are now, strategy report to to results I'm our a months in we is as than traction, first our of are projects. key launching beginning see pleased number

is gaining experience to sales see organization team is Our contract results. and our beginning

fronts. and multi-pronged agriculture is to along of food the number a Our approach proceeding segment

projects launching for California As we states. but other is in our critical are a target in also mentioned we market in call, locations last us, forward-looking

expect diverse now full with the customize initial few dispensing different enable systems us next EPA major the a support. is months. experiment will to poultry in base, to in project customer more in and us with results This to Our allowing swing. is techniques service effectively industry This project full our we

to Farms. organic project of use part few at begun our ago, Lundberg first as the As organic we Lundberg California major we us ContraPest to farming weeks in a a road penetrate the provided for their has in industry map production. announced organic others with have segment

rice adoption the segment. in see grains, wine to and In grape and starting to addition other we're

California. in team to sales conventional farms have created dedicated We a with and now work organic

major and organization We have sellers. well rodents initial the help are contamination caused We’ve from already in our expanded this launched also loss generate our by program locations. a the and focused for are They an as dedicated initial program contract in more deploying sales retailer. leads to acutely segment on

the but in still preliminary We’re of stages we’re about optimistic program, this results. the

with work to progress. Our continues municipalities

The in significantly, measure Most D.C. high, averaging a XX%. both is now Washington, and in project our is commercial key eight in been residential has very efficacy, testing of live wards and all deployment consumption, over areas. bait

a control ratio indicator showing solution. adult key the of importantly, to of preliminary significant our the decline juvenile birth is another camera our More data rats. is This of in efficacy

techniques other large delivery this location refine data San deployment earlier has in Los targeting their our St. added Louis long-term to assembling We locations after in to aid year. continuing program in are deployment their begun locations. in also Angeles. there and We’ve successful are and various to Francisco to initial sales another

slowly, optimistic ramping positive are projects as that they results we’re these Although will come in. expand initial

government next serious are further and the to and in how on pitching joining see quarters. we agencies been We have team currently I few gaining are trust our calls customers’ our hope penetration business. other demonstrate to municipalities personally about members several these and

XX At sanctuaries. over are we zoos this and point, servicing

mentioned our I last initial in our of call, this As key contract sales a organization. was target

is require indicated and strategy. that results, pricing We’re program. still XX we and shy the One work that them now evolve selling strategies. will thing to delivery our on any most just that PMPs and sanctuaries zoos learned we we both that need serviced deployment with while have of of that The into are days promising, by

use the PMPs X,XXX been while we address added CSO how To price the pull-through we’ve help this, the target So to list. to generating we’ve still demand, product. to need understand PMPs and

expansion and and successful the our will that a combined for strategy pull optimistic model into provide target will cautiously be verticals. other push-through We’re

focusing on our We continue be acutely to on focused managing burn rate. –

quarter, last existing our I sales improvements product. efforts product we focusing energies have As on and to are redirected our towards science mentioned our

the need As core the research Officers. less skills commercialization company aggressively and stage Science for Chief there’s transitions of of to our Chief Research the ContraPest,

and their to Mayer and humane leaving ContraPest animal the their of both Cheryl want for Science success are Loretta and other roles into of Officer. the with research and continue behalf Consequently, Officer their control population for as to Chief Dyer with they passion contributions Loretta species. Cheryl Research hope I Chief On thank company, Doctors

higher next review report, Tom than last and quarter, are are revenues will engaged against over requirements to the our few That As potential we sequentially the said, in-depth cash developing. we’re backlog in beginning an quarters revenues. see of

prepared for will know to early next necessary. capital strategies still additional months, be it’s over few we be exploring can capital-raising sure, so if we the While

on restrictions on anticoagulants. Assemblyman the enforce to new solutions ABXXXX remains California while Bloom the how parked Finally, by for authorities California work

bill Our the the sources us uncertain. spring, reemerge that but tell this is will exact timing

not is stated quarter, expect other states essential will we our As lead. XXXX the states to last potential our indicates in business XXXX future. its like California and which but follow accelerant is direction to are we a heading,

to move from well the of the sole need evident, solution is said, this SenesTech infestation take That trend. is away positioned as advantage very to rat strongly to poisons and already

And turn with take me over you let numbers. that, it through to to the Tom

Tom Chesterman

you, Ken, afternoon and Thank to all. good

revenues. with start Let’s

additional meaningful, quarter. the revenue This $XX,XXX were $XX,XXX, for order or $XX,XXX. and does the as deployed variety customers is Not include order locations. at a the of Our an $XX,XXX shipped from end-user was but in of recognize second the from PMP the quarter intended it a one we our third PMP's revenues stocking included partners the not quite up for for will

from were the which expenses quarter. up quarter, for Operating million $X.X is the second

occur expect fees Within to we and had professional for an $XXX,XXX. quarter, legal the third do that we unusual not in surge

brought We also launched sales California, a to net $X.X $XX,XXX. million cash-focused loss million surge That for EBITDA. and primarily in marketing $X.X the expenses increased a or more operating which

cash. excess excess be How $X ended million grows depend how the per We at little EBITDA will and Ken our the month revenue $XXX,XXX will year that from to that with loss much anticipate in mentioned. for quarter the expenses programs continue that would in during operating a quarter and in the fourth the on $X.X I will million. of $XXX,XXX initiatives much

second total market have we quarter, a starting solution customer SenesTech relationship. pipeline the of shown is Last potential inquiries XXX. are what This a offers. interest number the who called who those a introduced now are individuals XXX. we an qualified with for contacts up sales of leads, the of that ready are point set awareness Year-to-date, in Total the Unique the whom metrics. the At full is a also was end figure effort. this and conversations quarter, of has ramped

once at campaign of reach, is was end later is. is response the we year-to-date more a a yesterday they describes include any quarter year-to-date to number additional measures These what no metric, the call XXX. quarter, course, of – can turn aware a XXX. XX,XXX. thanks. communication, what That number campaign influence second the thanks into yes contacts. can, The sort which At But are number which is this no of ContraPest One of

a full As and quarter the earnings filing press be. our is be website. shortly we to reminder, where picture Furthermore, expect for XX-Q on complete our will our available financial the release

At turn over Operator, this point, we for you up? open call please questions. would to like the could it

Operator

from go We will with now Craig-Hallum. [Operator ahead. Kevin Instructions] question-and-answer first Ellich question The session. Please is begin the

Kevin Ellich

Good hey afternoon, Ken, guys. Tom. Hey, was morning. good going I say, to

Ken Siegel

Hi.

Kevin Ellich

the you camera contract guess of press I terms couple study. to guys in off are per that there start the of see let's year. with the and you. is for the update the up A $XXX,XXX $XXX,XXX Wondering to Good cited going questions we start release, – when D.C. for validation ramp? to In

Ken Siegel

Tom. turn, Your

Tom Chesterman

end given orders deploy As city. of through ContraPest you we they is have that And additional preparing reiterate recall, contract sizable them yet. – have rather coming that, on their year, actually we in order that's spend last under how so really a any had burned may I that yet however, would up not was at which out totally it. the the expect to seen much that do not in that, something – to stocking how That's Kevin, of might they year to deploy be a that's is We exactly they control. dependent –

Kevin Ellich

to stocking just over order a And spread XX, $XX,XXX that to of on order I that Understand. come September will cited, it. be have going since quarters? maybe I X all Or the couple going you Got that the in understand. is then, – QX? Tom, you, through back

Tom Chesterman

for would can't a the that revenue. that the of would. necessary I'm guarantee conditions not fourth of that recognition in the I sure number would them them I clear additional were anticipate most quarter. this all were of at of There time.

Kevin Ellich

the And SG&A higher it. then this Got quarter. was

was picked as that other what And little think – those I legal fees were to up bit an us incremental $XXX,XXX? give two it there this professional items I and quarter. color were? a Can you was thing you one said more

Tom Chesterman

professionals of including have, Yes. The lobbyists $XXX,XXX not include And was we professional and legal might any fees. types those but legal cetera. fees, just et other

We organization. costs had expenses continue say the expect a more and primarily also period, being California, surge marketing I periodic increased some which in that for the And to that would less contract within start-up sales sales also launched than something I we same the of or would rather at all those were $XX,XXX. rate. that

Kevin Ellich

California? is a it said it's it states And about major a program you going some And other comment, well? in who your expanded. in Understood. is remarks, to give a it. back you was then which just I is with little only bit Can made a it – it of color? You more Can then, tell already interesting Got you retailer. as is? thought us us Ken, Or prepared pretty

Ken Siegel

I Kevin, retailer, will is so give NDA a you a not it's tell We're national just I right more that issue. can't you this detail. under California now.

Kevin Ellich

in you good do verticals. with it making And you're understand. interesting the biggest like of then opportunity lastly, think may I the efforts all your next year? be to progress two is the TAM most over the What one Okay. obviously, seems and

Ken Siegel

exploit Though our production the whether way their it's really across But that's poisons, food Mayer, with food field bias works that or I’m forms. the piece way this us. think that its is about most against chain, emerged we're the very particularly organics. in significant right by well as otherwise, and various for at the whole to organics contribution we're we're I there, last it now. grain a excited and quarter, as entire vector, was is seeing since Loretta something strong positioned a again, looking And its wide-open

excited. so that's most where I'm And

Kevin Ellich

That’s guys. Excellent. Thanks I all have.

Operator

The Research. from Zacks Instructions] comes question Ian Gilson with go next ahead. Investment [Operator Please

Ian Gilson

call. the of in part missed I initiative Francisco? afternoon. the Good you discuss Did San

Ken Siegel

it We very at talked Ian. level, high about

early of We quarter stages in couple about at but some are really have next a focusing bait D.C. consumption the in with thing the in just The for We're we starting working We're quarter. returns. point the working showing best for And but know a projects. of the call Francisco in on the we really PMP early big this we'll you there. And where went a buildings, are one San you've to this XX% don't levels. were municipal got if D.C. it's seeing probably with pilot that talk more point. is that, in is we're I

are We deployed at… now

Ian Gilson

get many On bait particular I press from D.C.? how release. that the did there Yes, stations that were area, in

Ken Siegel

I you off that but don't of head, the I top get know data. my can

Ian Gilson

camera side. I'm talking for just the

Ken Siegel

a have would front we you. get for something that in right of not that now, I it's but Again data me it's

Ian Gilson

Okay, Thank great. Thank you. you.

Operator

remarks. to back This concludes turn to session. Siegel closing for Ken I the like conference any over our question-and-answer would

Ken Siegel

It's months joining a very us. – you of time. now six in. I'm all exciting been thank Again, It's for

beginning seeing commercialization you Again, thank we're momentum in quarter. to to and sharing think with process, you. really start more forward next I look

Operator

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

now You may disconnect.

SenesTech (SNES) 12 Nov 192019 Q3 Earnings call transcript