RMED - Earnings call transcript Q2 2020 | Catheter Precision, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Ra Medical Systems Second Quarter 2020 Conference Call.

As a reminder, this call is being recorded today, August 11, 2020. [Operator Instructions]. I'd now like to turn the call over to Jody Cain. ahead. go Please

Jody Cain

Cain today's Jody Thank for you This with in call. participating is LHA.

from Will today, Joining Officer; Medical of financial Ra me are second the Jackson, a release quarter Financial results issued for and McGuire, Chief Officer. Medical Earlier Ra XXXX. news announcing Andrew Executive Chief

York release Carolyn If e-mail contact please distribution news like at and be with or New speak XXX-XXX-XXXX not you've this added to Curran. list, LHA you'd received to company's in the

for up in sign You alerts section and the release also can website news the e-mail the of access Relations Investor at Ra Medical ir.ramed.com.

During by August of a the number the XXXX. management management of historical are call, extent Ra of of meaning Litigation will of as Securities of the the Act not there reflecting Reform descriptions within this statements be regarding are forward-looking Private XXXX. beliefs facts management made forward-looking Medical, expectations statements making and XX, To statements the

of forward-looking unknown You because in should not results. change statements about control that beyond Ra uncertainties the other some is known on for contemplated pandemic. and risks, the and estimate impact results is involve cases, financial best results could are, operations, affect today's COVID-XX based Medical's there uncertainty the significant they information factors place In materially the impact actual undue company's and reliance on could means these particular, of and at duration This and time, on discussion. any the contemplated COVID-XX and outlook

GAAP Medical's quarterly ended March the XXXX, on XX-K to Form on with the supplemental period remarks forward-looking with Reconciliation of be between certain and purposes comparison X, For solely vary SEC. and enable including financial Ra not the XXXX, both the conference ended over will that, by the as that for except the With should the SEC filed to allow accompanies on financial obligation to call update measures. report details by information as performance non-GAAP measures release and statements periods and of GAAP SEC issued XXXX, expressly this financial Form was earnings Ra for greater results. financial believes respect metrics and see informational at Ra Will to year the non-GAAP for business turn disclaims useful company's are the filed December law. investors end about like results the I'd XX-Q independently Medical management GAAP regarded release intent Today's and can non-GAAP provide include presented any items to operating financial with please the used risks, be of the the call measures financial report or filings, for and be results XX, for in may transparency today. with corresponding between comparative business. These found Will? key non-GAAP earlier June the business, financial required Medical XX, a for about performance replacement these annual that McGuire. news call of results

Jonathan McGuire

Thanks, our on Jody. an I'm business. this for thank share everyone, pleased to you us. have provide progress Good opportunity and and update our joining afternoon, to

COVID-XX pandemic. words say the I'll First, general a in about few continued

Our manufacturing facility has located COVID-XX in during pandemic. Carlsbad, been operational California, the

are feasible. home essential personnel are safety to limited when and Employee travel taking mask manufacture working lasers continued precautions. have catheters only, interruption, and and practicing wearing social to other distancing, from without many We and our travel employees is

vascular limited accounts of of experiencing supply number We are not any currently U.S. accounts. to that impact dermatology or products, our would supplies ability manufacture sufficient shortages to the our

of further The full impact are may candidates our be atherectomy during cannot we COVID-XX its will to raised or vascular severity involved third Despite depend public uncertain who predicted. concerning that highly among are emerge developments, clinical in the to As new actions the and to This in primarily our the it impact, capital contain successfully stock includes will supporting be which COVID-XX and the others. second a information business additional through involved grateful on study. and future for timing pandemic, reminder, the which we are and offerings participated. quarters or X treat accounts of extent investors

if purposes. received also a which government used a We forgiven specified program, may loan through be for

business. financings attention the these focus now the can with we operations completed, on vascular XXX% our With of Starting the of business.

the underway engineering to As efforts in recall, catheter better us have penetrate will the design, believe will market. limitations address DABRA help specific we current you multiple atherectomy we which

platform. obtain FDA clinical to shelf an the our to to is catheter's trial team. for also catheter's fluid the Extending atherectomy. The This #X identified to perform update life are contributing project coating DABRA essential has since of life team indication all products aspects is the underway limitations. from these engineering and the future core developed progress is and has Our shelf our made that good last

as additional life our on innovative sufficient to and required mitigations work life. place by extend platform. remain We will shelf both identify differentiated have of catheter other continue obtain pursuing fronts we the to that confident a are in year-end also plan mitigations to comprehensive shelf We we potential

tortuous make our We are resistant robustness also to catheter when navigating it the kink anatomy. more of increasing

for As overjacket this work necessary FDA in expect the discussed and improved past, design. in we currently complete first catheter. addition similar objective expect the We with subsequently or of XXXX half a engineering pursue to braided the clearance a this achieve of the would to

Another our important while with this typically a performing comfortable interventional guidewire. compatible the more DABRA version an of using a product project Physicians is portfolio. is of which guidewire, our procedure that are component makes development of catheter a moving forward an

the guidewire-compatible end the of We We catheter development concept experienced to catheter of early and overall completing in before are outsourcing for by an several the to anticipate guidewire-compatible this for XXXX. the prototypes firm evaluation DABRA expect have engineering development project available vitro XXXX. version

reduced are more or currently operating at also even XXXX. we patients the enroll and in and with Since their XXXX. and engineering in the am team Many prioritizing are the feasibility from in for XX time, are commonly an criteria subject more sites late our updates is XXX we potential project. providing the COVID-XX reduced atherectomy catheters cost this to have study trial development pandemic organization, and approved Though To parts patients Lastly, further a time enrollment added impacted this Many we vessels, FDA have to and we engaging advance subjects. resources that hiring encouraging, feasibility have our as advanced we in atherectomy personnel fit may enrolled are for up that in DABRA initiated disease achieve of closed through substantially of state, trial. of We a sites I indication skilled found This additional diameter clinical forward in exploring larger first from are we and work Early those to the substantial the obtain new capacity, year operations have experienced results knee. which look time. engineering consultants. subjects. larger platform, this place for the the clinical some our sites goals. sites has the I ability to sites not right to February confident activate to above target procedures stage

until to subjects In the postpone three opt team and on our the been to are addition, indication. currently One during line sites subjects study to sites most X atherectomy of potential We study anticipate COVID study, rebuilding have more for clearance the have enrollment the sites enroll. unpredictable stages our additional note FDA have cleared The we to will vascular final not may to for cannot estimate completed. completed COVID-XX current being potential to final in we pandemic. when screen procedures voluntarily the the time under X this moving operating projects significantly their been Currently, engineering now that impact are participants cleared enroll expected of and do definitive vascular forward. the be pandemic a and study in obtaining of are sales relative cleared business. COVID-XX are Due protocols

our update efforts, we we will As you accordingly. progress

has also from of capital delay DABRA, a such Pharos component, disposables acquisition equipment, as laser. we purchase sales not capital rental our service agreements. customers as and many or by Unlike or business our the revenue augment impacted dermatology Our derived equipment COVID-XX have recurring this lease been business does with and/or

than business As such, less be expected. impact of would this an experiencing otherwise we on are

the timing the to an of be business impact our evaluate overall revenues there those believe contribution the influenced changes the to and potential dermatology cash its the is U.S. by opportunity future, to well continue and strategy and strategy as both as in pandemic. our dermatology Changes business COVID-XX increase We grow in will internationally. of for the

continued cooperate in spending navigate Also, has our the government to of performed forward investigations, facing company continuing the are invest to well our believe going at with to initiatives, uncertainty to we I due physician the the strategy COVID-XX. various and issues While us. level we being key initiatives we the adjust appropriate procedures legal as with offices reduced to as the have overall strategic reduction

Now discuss to financial Andrew? I our will Andrew to over turn the call results.

Andrew Jackson

be and the X, XX, May, and completed we $XX.X portion all We through as common the net in and of the Will. lender In or August stock warrants commercial purposes we that believe a note. equivalents for approximately for of public if and XXXX, the million. have approximately forgiven proceeds warrants the Thank $XX.X received XXXX, reported $X.X under the Also Under million net a may received We under proceeds. the public Program. in stock we June loan of we the million used in $X a offering a On proceeds cash another and common completed million forgivable you, of cash Protection secured used offering of of proceeds. are terms loan May, Paycheck terms such program, purposes.

EBITDA $XX.X of and million with XXXX quarter of for XXXX for Turning of quarter XXXX. $X.X for second XXXX million from the other product of XXXX million of for R&D now sales vascular million XXXX of for This for compared prior stock-based of $X.X SG&A with expenses the inconsistencies second million and with consulting and GAAP million a second included in $X.X costs the expenses compares our SG&A $XX.X were $X.XX of $X.X respectively. turn the $X.X sales share. the We respectively. million XXXX XXXX the $XX.X million. for of million to included XXXX, reconciliation compared to million. second compared compares which fund quarter QX with negative for of compensation and $X.X increase Will. to the of of second for profit for revenue increase million the with in quarter $XX.X revenue million other $X.X The second second $X.X of second was million Adjusted to million of million better today's press activities for related $X.X quarter the XXXX Net for for XXXX net or second period. the for year quarter was compared next-generation second and XXXX, compared for of compares of on of the EBITDA expenses and order quarter service catheter financial of XX% with of of the R&D share. $X.X $X.X operating $X.X per was million A negative segment with the Revenue from the $X.X expenses legal litigation XXXX GAAP compensation $X.X prior included of period. of period. XX% R&D DABRA was $XX.X loss of in the government the million investigations. $X.X includes consisted and loss and quarter for half of $X.X the the cash expenses performance was year release. expense second were fund expenses of year net of for accrued the segment quarter used quarter XXXX first and This the of activities. which to million XXXX period. prior loss to of expenses million, $X.X product of operating for and expenses costs of million an Gross second $X.X quarter per and negative the prior revenue the used personnel to for for margin to second and service revenue over estimated million Revenue quarter million investigations. the back understand for in XXXX in government a table quarter of the with efforts an GAAP the million year that, year for dermatology $X.XX the products. million with or stock-based the was like to expense expand quarter period. call our net million year $X.X With net negative second consisted $X.X $X.X and related included prior first million, in is XXXX in XXXX the included This I'd securities quarter second non-GAAP million half the $X.X SG&A quarter the results. XXXX compared prior

Jonathan McGuire

Thank you, Andrew.

I made deliver right in this confident on place and product our products and quality I'm closing, efforts, consistent we've quarter manner. a pleased have we in progress the engineering to improvements in with am the So team

large We committed mission markets, we in to and limbs. of lives operating are our two and growing and saving are

With these Operator? comments, call questions. for like the to open I'd

Operator

Instructions]. [Operator

with Your of Piper Sandler. from Adam first question the comes line Maeder

Andrew Stafford

could Drew on as for the quarter. for more detail the you side appreciate the commentary the progress on share bit is actually in far as the catheters. life shelf I remediation product little of a This the Adam. Maybe

you of it sort down I give idea quarter an kind the isolate issue could feel it have last think gives fix I were diagnostics it. kind here. pinned you like It of you've like in what - side. sounds able that to to remember you in you able Maybe your if then working you it mind you on being found and of an the confidence issue more replicate of - us been of and and confidence correctly,

Jonathan McGuire

to manufacturing said to up. the we've step at is to coating processes. of talking shelf one, on few we you looking for take looking question. looking at the a related fluid we've say catheter. done we've the Will. as be been we're in and to back, catheter's We're prepared and our What relative consistency looking of materials. of remarks, - coating. aspects: the clear, as We're the identified maybe And the thanks related that, ID back to life the Yes, some about the issue is the at Sure. core I'll when This I'll the design. the if at that, we And we're another coating, the

some there's know we these we there aspects So certain that are limitations to of leading have. that

mitigations at the that pursuing job for aspects, shelf X to - thorough we achieving are time, we make and We that hamper understand here and and a could sure do us really same those everything anything want. the but life want we

are of there. our by outlined, contributors limitations. fundamental the And limitations. see are understand our still factors to continuing that shelf the do finished additional not analysis. place address We'll pursue if plan we those have then So think it. work the a we of only life that and all factors very year, we there's our and think will we'll end of to that confident that, mitigations root And have in to contributing that to cause mitigate all contributing those are are to some other we've two our feel we I there shortcoming the do to

it by the three place expect progress. our resolve I'd good was now year. have plan really say have a and to confidence and we a understanding end higher is than ago, to of still full it So months in

Andrew Stafford

in with you the on bit And Maybe the we a could there's derm on you had cash the through that sales components Is higher as the out spending mentioned Okay. think break rest should side primarily there. kind the year? for a the some the bottled, we some your expense of than anticipate side. of chunk of I efforts? well. then litigation on spend helpful. That's SG&A was of little of what burn especially side, And there then

Andrew Jackson

is question, Good This Andrew. Yes. Drew.

$XX.X used So X that if that year. $XX.X the in X the last our you million for of contrasts months year was at look months cash of first million, this first for operations with

cash have our we So burn. decreased

was If year. you of X investigations, months government the for this litigation for remove it's the the $X.X $XX.X million and that million

So million about it's quarter. an $X.X average a of

a our So burn we have brought quite down bit. cash

But increased ahead. Will of have not proceeds, we're discussed, of We've with you in million. to spending $XX add did, challenges - cash million the $XX.X and We of to that in guiding net just us that the we R&D. you $XX.X really resources quality from at the areas both spending June we very the quality - areas hired the gives some some and these the million raise had the and gives that end mitigate

cash that bit ahead of that you of So us. an we have a gives idea runway

Andrew Stafford

That's me And for one helpful. Okay. last here.

of had you at to especially led the sort assuming lately to COVID, institutions? As running, their to that discount COVID executives financial hospital post we - proposition of start kind a regarding has their up any think nice speak priced have product and environment some should manufacturing you a vascular reception executives as at kind type pressure there. a the some to on some Have of to side about competitors to you're of the of able your value chance regarding to get

Jonathan McGuire

the their is forward, vascular or is the these is or Primarily, a be cost basically and partial what that's our can giving we labs, This the either conversations. even outcomes we feedback, regarding OBLs. are past their use make say it with going be especially very as that. be safe will think, we've they X target again, coming they're pre-COVID, to I a because are primary especially they side at office-based to I'd continues and the in on given and right Yes, And few the other they can or probably efficient therapies some the the if are we And - that are they owners Will. profitable and it's a every had them an that deliver in think price come that a I of product in are owners atherectomy help the business. for struggle of predictable out point the they the pocket labs cost-conscious running an complete OBLs, and over can to interested us and it's will was we on think market that devices because, attractive and us has shot if year we business, them reliable, comparable sure in and day business used it's

Operator

question Maxim next Vendetti with Your is Group. from Anthony

Anthony Vendetti

made. Right then And the you wanted that I I to I months that would the to the it's shelf end potentially about the add? catheters. improvements how year, better you think talk just to overjacket what get two it's other Will, add? know will Can by X the know it's and now, any can improving right what you have but any feel improvements - of more other little progress now. mentioned overjacket up guess it expect been bit talk at engineering about has that months, efforts XX-month you you think I of idea a you at a like life? or mitigation

Jonathan McGuire

related if to XX of right confident now of start the our a that the improve are impact to Yes, will, domestically, months that this the our probably will first some core I activities We time can't articulate at would Anthony, question. at that life life, some couple that at over then think goal of but months. ultimate thanks There's fluid at. would life. we things other we're is goal, to you shelf so looking that be have, shelf addressing. us the get X will those would commercialization least host And be allow and things inner - for shelf Yes, point. identified we've are those least Sure. on really a coating the to Will. we

and that anything of seen that we're haven't all hand XX getting We us I from we prevent we would good. now. that feel have track. in to far, far, so so X don't on months. just validate the But testing think right the months would And right

We expect shelf life hit goals. to our

on said in for catheters or to us is overjacket guidewire. the as as other to or catheter good complications. - a and effort the we As to work a we'd and firm a it life, catheter play separate the more piece life has remarks, progress this years catheter catheters, understand are we've of in work or developing a is shelf then physician half play of We from the more we've really allows it let's kind the into far a separate year. that. that that project, overjacket experienced a interventional the And more outsourced Anthony, And The we need tortuous development of kinking desirable we we reduced getting shelf next need, complete robustness element in they to the experience very anatomy there deliver push risk and first engineering the of we may the assume improvements think how catheter, a catheter. to just guidewire-compatible. other that really is really that engineering of with or that prepared that the ability And last again, our into improved concept catheter this torque robust the need what over any of

from to that to engineering the that provide testing expect an a decision of forward by concepts then for year, the design we'd be expect a with the couple XXXX. end of We and would design essentially would go in we to perspective firm available us have complete that and early make

want delivered a be for compatible life moving without end minimum want what to have have towards the catheter we have over we an months, of risk is year. interventional X the shelf can tortuous guidewire. a want to a to be want in kinking, that XXXX, and of to at So we robust more anatomy We catheter

forward parallel. so one why moving these of got we've that's And projects each in

Anthony Vendetti

Okay. Great.

Now I up, then that's having know numerous of with little even sites the Can being patients that in one talk good atherectomy is a are the the various to able to from issues up, during update. get about trial? enough meet of spoken enrolled I've a clinical bit if is the goals. you COVID-XX trials the that companies stages and site

And up some companies have additional you approach a to Can ended little process? sites trial speed with about up the for enrollment atherectomy enrollment. contracting the bit talk your

Jonathan McGuire

it's good Yes. question, comments. Yes. No, a and I agree with your

that are been capacity. so more a at especially PAD patients they have capacity, predict we we've the of cases severe, said, has a that And of can't primarily caused again, we within And of at sites in office-based completion risk labs. be - cases, limb, are a that of As these and fall those ones some or sites cases as as reduced - trial we're unfortunately, of of the really as operating in inclusion our now. are most criteria. it's most many Most prioritizing I on that, this far not right times, advanced reiterate, operating impact reduced the the couple these to cases. or may would of losing And COVID-XX top of said are think timing with important just that your

then And least twice out. lower have a cases. now We've too has before also, starting will - they the risk out got at we've So Many got patients procedure are drop severe of go inclusion/exclusion medical COVID-XX. And facility to more or to thinks criteria. those is an because that elective severe and anyone opting there volume. for a getting a of been they're

that the had. or kind So we've those restraints are constraints of

X now screening have sites the enroll, about to we now adding we that now one other that believe On To earlier to positive cleared actively X can have do in we that in is additional and participants. screening sites, stages the point each your cleared are study - we the in then that have side, sites additional, have process. they we start of are those are getting for And patients. sites final X so addition for

to want feasible I'd So their continue positive our the we do we've side, is sites as on enroll volume that Also, say from to patients. returning. sites heard adding

So reporting back. firms starting ramping - not that where volumes they are they're And back other they're Their seeing rebound. up. out also but pre-COVID-XX, volume they're to is reports from were there, procedural coming heard are who, larger patients getting interventional to I've again, companies,

that, continues. Then what So there who do we handful individuals clinical doing? is out for we're internally, else hopeful vascular that of on trend have side. One are specialists we the a us are

made screening trial clinical support regarding or of #X efforts support the constant study their sites priority to to have We with enrollment now each participants their the sites and communication and one activities. screening in We're potential at site. these

look X patients. I think at the mentioned call we now can last in our that amended we protocol sites and the Rutherford

effectively. we believe safely of patients we classification can one and that do more So severe

been So Affairs, XX our one, now staff out along did new Clinical make include then last of and days. can in visiting sites that we who of potential trial with finally, have came on board I in that screening. And the add Director they're here we some think, as they hired sites. personnel those a senior members our other trial And person significant

So out So do in to that can person hopefully them we're going now?" spending asking question. just your and right you "What answers else time help and question, the with really we

Anthony Vendetti

line be you - tough what give just time based completely tough. think But Just Or any on it's you this to update quick COVID-XX, the it's I Will, could really on at - point? to enroll? know could on point, this at if say

Jonathan McGuire

say complete enrollment time might of a impact impact when that diminishing a by, now. June, or me last call, say were we in first were right bit Yes. line. COVID-XX say, further to give It you to irresponsible be half little really no the in just We from assuming is can't the expecting What we for I'll XXXX.

definitive screening you and what see of the X we confidence see certainly, to So could the support time more XX XX, it's as now. the importance with that right I a much next understand there, their by Hopefully, some to call, think up, we performance We we additional give X but line I can next is, push that I a sites the line of could say out data. it. with get hope any the really are sites days over now. can't it give we you hard that time right from just

Anthony Vendetti

Understood. lot of then on dermatology side. last offices quarter. the the in Obviously, closed just second And question dermatologists' a were

reopen. to Some have begun obviously

the Just start - strategy side a business, interface this? to to can they you as and talk reopen, about of little that the bit

Jonathan McGuire

Yes. few jump Well, in. and a can maybe I'll make Andrew comments

We I our have work elective agree are your to derm and to of to percentage of would at procedures number work. they now, would back procedures been Like with trying were they strategy down see that the on else, business. volumes everyone elective definitely or given you'd there, get and to like get elective the comments the looking - back

we So know are happening their procedures again.

in If by placements we you and - interest are that. other is new our laser like sales, driven business the seeing which new just look at driven laser things business,

rebound. So there hopeful will that we are be a

the to and about have say are as our opportunity contribution we anything We our cash from to the an far we strategy. to want business. suffice through say, grow publicly still we revenue grow don't still that But see to strategy, that. now grow working As the to business,

working through like. so looks still we're that what And

probably COVID-XX investing and would the be start if that when that think we a is as back strategy of about on us. and hopefully, we that that in far of much volumes, return rearview a kind our And behind we're of as have get say the that. restrictions working would of more would lower end in the business, mirror. we've that the to not probably - case a we're strategy, and through got would the COVID-XX but As right It executing we'll given certainly we lot now get we as again,

Operator

further over remarks. the back there McGuire, questions to And you at time. no I'll this are closing call turn for Mr.

Jonathan McGuire

next quarterly questions call. providing for dedication. the thank Great. on Medical update hard for Thanks, everyone look forward and to Ra again, to your our want I an continued also I at work today.

today, your So joining once for very support. thanks again, and we much us appreciate

Operator

participating. today's gentlemen, conference Thank for and this ladies call. concludes And you

now may disconnect. You

Catheter Precision (VTAK) 11 Aug 202020 Q2 Earnings call transcript