ASRT - Earnings call transcript Q2 2021

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Operator

Hello and welcome to the Assertio Holdings Second Quarter 2021 Financial Results Conference Call. My name is Sinara and I will be your operator for today's call. At this time, all participants are in a listen-only mode. [Operator Instructions]. I will now turn the call over to Max Nemmers. begin. may you Max,

Max Nemmers

Senior available overview Officer, thank to Vice today me second for Dan The President and are quarter earnings financial Officer. accompanying Paul will that, I important Executive will Paul, is covering and and our Schwichtenberg, business, results. and it's today's page the to discussion. at With questions. as the website we news us release our by open discuss our Dan investor.assertiotx.com. President now period and this Assertio's Peisert, XXXX will Financial encourage for the of Chief remarks Chief you call review the afternoon followed Investor joining of your After who you all would today open release on review provide Good to the financial an the results. for and

projections report other filings future of future statements forward-looking management in as press the call, other Assertio's the statements and this this involve and performance and SEC. not Factors other afternoon's our regarding on including are Form and in risks will as risks are those section During described well uncertainties, and noted forward-looking Such guarantees make performance. These annual more release our XX-K. fully Risk with sections of

forward-looking Dan? And Our over I actual these call results as law. specifically except disclaims Assertio in statements. now intent may these any obligation to will forward-looking from the With differ update statements materially required the turn or to Dan. projected that, by

Dan Peisert

forward welcome substantial in To working out in Jeff with promotional who to afternoon. build a the us President joined and look non-personal time to made us Jeff to business. contributions welcome Christensen, like has short of platform. Max. to Vice And the I Thanks, joining I'd Commercial, this further to everyone our May, already Senior begin,

who better line, of Vice inclusion team Operations met business had the priorities. than the To and our have towards welcome Bill addition, teamwork, corporate pleasure not our Bill punch In progress this rejoined with Senior and better is the of I'd Iskos. expected We've get substantial back as performing past demonstrates we're Bill working President Assertio like of our to the culture week. making results. someone and to in

the will Paul net The minute, INDOCIN, details confidence revenue million. sales quarter the did sales is resilience distribution $XX.X is made to bolstered reflected into and effort for our conscious As in of extremely had model in portfolio our go generate our which in our promotional to our model full a impact were shift encouraging result, quarter, product increased we year. the has this for guidance this this

to on we've and solid Our of able accelerate our thinking, team some combination is to delivering fully creative savings. promised a execution of through cost our savings. And committed restructuring been

All has this legal the focus for operating quarter key has this to legacy of this led of business result uncertainties. management quarter. to efforts our strong our been team's mitigate a A

quarter at not reflects second filings say release position $X.X the to at liked legal our our this estimate details about nature but resolve come separate You'll reflects to We this the in that have estimate see charge. there's the two charge and have would to best been these a charge we've today, point, Unfortunately, a to have time. a matters here million This current of much results. provide close more our complete of and taken in can we not charge more in an matters.

nationwide business commercial quarter and to EBITDA execution, had However, charge opioid management announced majority this strong of is hold potential matters combination taking believe to million not the our for of a despite strength range to testament some we're adjusted in $XX.X on the expense do these of to still that any press our the able I projections. a unrelated the the recently to been the the of avoid news litigation. guidance firm prudent in confusion, it prior any the recently, of anticipated in settlements that are through

our So our our accelerated targets. platform. and the in aggressive in development. we been synergies, focus model. includes few in the operating now business the the generating our constraints only not flow, past begun uncertainties, pace towards M&A are the at that the substantial of We've we directing far generating business It built legal business more have progress defining from cash on the least That's reduced also building months debt team, placed made

Paul, likely in than the actions seen we've quarterly through who I'm We results. look believer say of so words, peers there big to recently, much you've from available. speak delivering sooner later. our more. a just some walk over what won't transactions hopefully call to said As than turn forward will now, I the on I'll and louder are And

Paul Schwichtenberg

Dan. the you, Thank financial XXXX. from our quarter I second afternoon, review highlights This will

results been net forma pro impacted case as volume X, to as the on was represent $XX.X pro the from sales compared references completed a brands, quarter million continues decline sales quarters, few last As SPRIX. if in volume last non-promoted be $XX.X to January in change. June ended driven XX, discontinued is prior-year the of XXXX XXXX. commercial product the Net prior-year the months well million on versus sales forma and as the were quarter. by SPRIX and product prior-year Zyla million forma basis by any pro on coverage $XX.X quarter three The sales product the to for merger has lower

Overall, future. were quarter. this sales portfolio net strategy prior patient adjustment ZIPSOR reflect down of sales the increase primarily drive net X% lower on is would the flat first million. reflected the quarter will Please net quarter. change net versus prior the have distribution channel INDOCIN quarter, However, been systems driving the portfolio first of flat that versus the INDOCIN. change $X.X change, net the due model to million quarter to CAMBIA impact refer and the related for change Combined profitability the to increased sales $X.X the cost, impact sales sales $XX.X Absent compared results. to second a current quarter in a this in of for in to first were was which second of quarter. distribution in product inventory quarter The the and to XX-Q was income the specific information. $XXX,XXX million level EBITDA Adjusted loss net sales our

quarter of first impact EBITDA adjusted $XX.X million the was the million matters, XXXX quarter the the Excluding in legal XXXX. second versus in one-time $XX.X of

and which were quarter expenses, versus $XX.X first includes in the in general quarter. million. the reserve administrative amount $X.X expenses, legal Our of adjusted operating second $XX.X a million reflect million selling, This

calls, earnings for proactively to focus is As mitigate a was priority. primary work the legal uncertainties, and mentioned that to with prior company aligns this on adjustment

the XXXX matters, of were quarter million, reserve the quarter the $XX.X was for $XX expenses of $XXX,XXX Through income first are one-time half XXXX. $XX.X to operating And to to ahead expected legal million has our $XX.X XXXX, ultimately, first compared despite which low Net down in we million. legal us and cost operating the this Excluding million. or million loss of the beginning in the adjusted annual in XXXX, X% recorded savings million second versus EBITDA In expenses achieve first guidance, adjusted savings. the the are quarter $XX we quarter of end $X.X expected maintain the cost second net quarter. our of of allowed for savings,

scheduled XX, by On charge by X, On cash and impacted on $XX.X interest contingent our reserve XX, Ending paid As is and million. cash primarily from The balance a attributable XXXX company $X.X business. positive consideration. million the million the $XX is XXXX. the stated and generated $X.X balance $XX of principal $XX.X May million in in offset $XX.X secured change million, of of partially the XXXX legal QX cash which of $XX will previously, the June not to until March interest XXXX, the of payment fair XX, March the by current flow million was senior principal for mature of debt million of million, change million. quarter $X.X of was value

the to XXXX. looking quarter, As cash we on we stated sheet, last with potential in are investments balance accelerate additional the

updated the Overall, and actual and we're with follows. $XX XXXX. sales a net revenue once Adjusted EBITDA Product reserve quarter. pleased $XX reflecting of in the reflecting million for previous $XX million commercial of legal for refined to guidance annual cost taken million, savings to half again as $XX platform our results. our and results second the the XXXX of is quarter favorable the expectations million, higher Lastly, first response to versus

on expenses to portfolio continue cash revenue flow. see product the We impact of lower positive EBITDA and our and

call I'll priorities that organizational growth. focus ahead, Assertio back we Max. will long-term now, help continue Looking the for over And sustainable on our to to will position turn

Max Nemmers

questions lines Paul. Thank Operator, you, for please? the can open we up

Operator

Q - A -

Dan Peisert

last As again, have quarter, and afternoon team. thank of a results our I great Difficulty] Once not work I said us Thank this possible evening. [Technical been for without you. have could the joining you good the

Operator

gentlemen. ladies Thank for you. Thank and This concludes And thank conference. you participating. you, today's

You may now disconnect.

Assertio (ASRT) 6 Aug 212021 Q2 Earnings call transcript