TOMZ - Earnings call 3 2023 | TOMI Environmental Solutions, Inc.

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Operator

Greetings. Welcome to the TOMI Environmental Solutions, Inc.

Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to your host, John Nesbett of IMS Investor Relations.

begin. may You

John Nesbett

the performance will thank TOMI recent and today's joining today and Chairman us is Operating Shane Nick growth TOMI's Good company's and E.J. Officer, Solutions you Investor before trends, the Shane; of and and Officer Jennings. Environmental Chief Chief Financial an On questions have. Dr. of update for hld, TOMI's the Chief afternoon, TOMI's Officer, Executive for Dr. Board, conference you call Nick most recent report overview review for the addressing any financial will provide quarter will business the highlights. E.J. may latest call.

November company's replay the Please November presentation Securities are was the to which XX. press XXXX, November today's no of also is replay. be will A of XX, webcast telephone replay only details available in available www.tomimist.com. are XXXX, forward-looking which of be within of website, statements accurate may will at statements TOMI's through contained by TOMI therefore information Act Private time-sensitive as management Certain XX, may this any relevant the made date of release The of the revised be time note and at dated that Litigation call in constitute information that the oral Reform longer it recorded, written XXXX. included defined you

these important after may known call. upon Company risk -- These the based statements this forward-looking to this that and call in of The materially be to no facts date obligation circumstances factors anticipated call conference light should the results. from provided this update undertakes time. information forward-looking statements in evaluated the after differ of results at our is

they by in company's In addition, believes the non-GAAP this conjunction be measures considered GAAP the measures. that is call. certain non-GAAP discuss measures of investors because The financial it useful operating TOMI performance provide information should measures this non-GAAP use -- about during will with

earnings of Chief November call GAAP XXXX. A go will measures the Halden I Executive release dated to and included in TOMI's the Dr. Officer, reconciliation comparable Please XX, Shane. Chairman turn non-GAAP ahead. these over to measures is now

Halden Shane

good States. you Coast the Thank all discuss West for to afternoon Thank third performance. from achievements some of the United and joining of John, you, quarter XXXX our key

the expanding our During quarter channels line and on we the product capabilities along market our development of and collaborative Simultaneously, to SteraMist our customers. focus business leveraging current persisted our needs third strategic the our segments from efforts diversified XXXX, evolving of with key advanced worldwide, new accommodate to sales technology. of

old launch as their Finally, the SteraMist transport decontamination the replace SteraMist to are automation be requests looking the answer industries for known system system, to our integration the and to many seems SIS of that technology. our VHP

SteraMist in will this at sure now some detail place in time, is the right discuss are the right We and E.J. shortly.

in scale we principal high-margin in the business to aggregate the amount up third future Revenue its to an agreed revenue up and optimistic issue timing sell we to sustained profitability $X and the as about private said, X-month of convertible quarter drive business. model quarter close XXXX, of a related the to placement of the closings to the and was period, or million. Subsequent we orders notes more one our and customer our revenue declined during That X% of due recognition. for are ability the

corporate our existing external or or staff no of million sales purposes, most the representatives, for impose whom including X, that As an consultants. the accredited note XXXX, restrictive restrictions are institutional limitations The a working other company's securities. on may investors of of our general investors of sales channel outside and aggregate group capital, issued burdens new expanding use this from to and facility proceeds and our to November of net internal in sales sold distributors contains operations. We we expansion covenants addition $X.X offering and through intend of Frederick the

emphasis distinguishing been presence. Throughout involves with strategic year, to enhance larger of domestic our in expansion encompass and to strategic towards entities significantly This partnerships previous international network geared evolved our from collaboration our sales additional distribution simplify itself not has our also market prominent the but has this groups. approach shift only years, channels, focus with

independent key we in also sales As have consultants added additional our expertise representatives, we market continue of possessing targeted recruitment segments.

X worldwide. Thus on distributors expanding XXXX, far, our brought we presence in have

we XX include to our grown purchasing group health in week. in a and milestone last efforts to strengthen significant Vizient onboarded has by reach our independent representatives, marks recently position This our the manufacturing team were and broaden Our market. care organization a GPO, collaboration

products. the of we SteraMist care as science offer to Inc. of in iHP life Some with Colcom notable QX of and health are additions follows: partnered Colcom's portfolio part

joined combined expertise, Inc. supplier high-quality with us the Inc. XX Bridge and Colcom trusted a [ ]. clinical of equipment. forces laboratory of Collins technical sales a at years Colcom With leadership of as under

company decontamination spaces. and processing established be in consulting advantageous. will food with its business August, and mutually this specializing food base extensive Given In customer agreement we a entered development industry, expertise in safety the DAR Inc., into partnership a

of markets. well and us through in life the as most education knowledgeable all commercial, region We the the safety food on providing into of Western Central Universal channels a sales the platform safety food better the our SteraMist the education Universal September, as Disinfection aviation our states. about entered are Baltic expand facilitate and we markets in agreement our agreement Disinfection customer will position the partners Europe sales to the The the bases of anticipate representative the of In with advantages European X of better and markets. technology in to science in growth products

protecting Preparedness. entered bioterror from Founder a the Office threats. Patty Most Health Frontline to who President recently was with Public Director American Vice Assistant we LLC also past, of Safety the citizens Patty an is in University increased In Council, into and Director of of the in November, of BEAMS, Olinger, and division agreement she Patty Office dedicated Foundation of of recently, and and in assist, SteraMist Health TOMI a of the Advisory Environmental System will Executive ISSA. Emory Research the strengthen Administration development business Biorisk Global the network markets. Executive Hospital and expand Director specializes most commercial

education, institutions XX hospitality care, companies, of over vision brings and and health including She consultancy, pharmaceutical non-for-profit direction strategic sectors. years' establishing multiple and experience, executive spanning higher industries, large

our brand trade quarter different We continue in SteraMist marketing to initiatives products remain shows at attended of X the presented second alone. our active and and during

in has been and optimism of of we infrastructure we conclusion sales our a strong will substantial XXXX. as maintain of XXXX expansion The the sense approach

our to XXXX, sales acceleration ahead in momentum network. the significant a Looking of we anticipate

to September. of continue with team positive our year-over-year XX% We quarter-over-quarter revenue iHP and SteraMist we see service XX% through as growth growth signs saw of

scheduled TOMI having utilization services commenced year engaged their has announced a Rocky Pfizer Mount loyal as iHP conduct decontamination in we necessary a been Pfizer client the years. been in corporate to facilities, then, August, throughout their service on twice during to of As emergency XXXX. and called shutdowns the TOMI, routine has SteraMist decontamination performing facility, Rocky iHP Since substantial their tornado. our within service long-term Mount suffered damage which

strategies new to X expanded MIT both implementation research the Institute system lab now over and who of exciting of During and Massachusetts. quarter, applicator their call company's with CES to Cambridge, CES into product place E.J. located the and in MGH, in will revenue systems like the insights Officer, we comprehensive overview turn drive portfolio with Operating Harvard for forthcoming of in TOMI's development I third our our growth. initiatives and of to to Chief Ragon the a would Shane, provide endeavors a clinical E.J.? the partners' delivery

Elissa Shane

Thank Dr. afternoon, good Shane, and you, everyone.

backlog Our and remains current pipeline healthy.

preparedness. sector We aseptic in worldwide decontamination by encouraged general long-term are trends and disinfection biopharmaceutical manufacturing and the pandemic in

noteworthy the on biopharmaceutical integration The ensuring such undergoing emphasis industry, adherence production critical the guidelines is more to aseptic and Within product a than to is manufacturing interventions. persist, enhance ensure several aseptic There environments of strict Stringent as continuous in sterile process manufacturing ever. standards to demanding is efficacy. maintaining advanced and automation minimizing technologies human regulatory the process, precision developments. safety

global in global for production, manufacturing are shift Companies towards are engaging demand. adoption is notable and of leverage increased runs. flexibility, increasingly continuous changeovers approach, shared and a time for growing and resources efficient strategic systems, processes, a facilities the collaborations partnerships expertise and in and resources production Biopharmaceutical for providing manufacturing There to locations offering between required reducing single-use reduce the quicker establishing cycles. risk meet to to adopting allow companies more contamination streamlined

combined believe the the trends the sector. advancements, TOMI's evolving sector with range SteraMist Overall, of reinforce dynamic, SteraMist global poised recent biopharmaceutical care these markets. advantages health Furthermore, our aligned the this We considerations iHP and aseptic to well biopharmaceutical is manufacturing with regulatory to is landscape of prevailing needs and driven competitive applications, by partnerships alignment. technological the with expanded is technology of within products the

These facilities effectively ensuring evolving caters iHP to industry awareness developments technology aim enhance to among needs.

significantly our system. maintain Our company of market the referenced expanded German call, across of custom recent during universal outlook with for biopharm. Germany, a mainly segments, collaboration their several on the last partnership anticipating partner list or environment this positive in disinfection conversion months in orders a They into has biotechnology of opportunities but variety our the CES

disinfect return purchased the Cross, its a journey humanitarian The and a would I its Universal Disinfection X. in completely infection manager Universal measures could released largest milestone". and ambulance recently SteraMist stating implementation in the the transports X it "SteraMist would ambulances in service Red project organization This the SteraMist hygiene possible disinfection from during real quarter to disinfection German system successful revolutionize On note, for the an of world, make be iHP, transport. with side and quote,

to of Fresenius countries in SteraMist reiterating are extends large enclosures process to the XX actively involves ensures the been completed traction. to introduced qualification worth Argentina. Integration industry product, phase SteraMist with in manufacturers the of has trends and SIS, anticipate Notably, in later Adhering is facilities. It's assessment and in already system for decontamination. making key Kabi the the month. discussed, Brazil, We ideal Africa compliance requiring location globe. previously next X automation necessary technology second these System, introduces X at engaged the be an The This to the guidelines, the and innovative iHP with around Kabi it gaining we our solution South personnel Brazil, in Fresenius this notable or

noteworthy the product enclosure spaces, line utilizing animal a industry. is adaptable assembly life and every the CSIS extends meets establishing referenced standardized offered options, packaging line it and product sciences. earlier. distinct any research This almost in X universities research Moreover, developments for small lab

this product with industry, Our effectively. positions recent strategic iHP collaboration market specializing sell line representatives the in partners and SteraMist to and

been that past have am the The invested an and the even end will efforts this with impact yield years. optimistic I in significant X by months activity, marked anticipated greater the year coming of awareness, by positive

Our gearing to that we the previous stay with to our [ press of ], this highlighted ongoing quarter Phase further to significant anticipate upcoming tuned partnership pleased importance. share X collaboration. in the details, as I'm be continues announcement. to from Solaris so unveiling of I release everyone the advance We for are up encourage

a In the company of promising of cell in of as England. initiated This device of iHP currently the exploring in cell for phases New and based its another another discussions with decontamination we integration. presents current a realm scientists long-term the prospect method. integration This the quarter, design is stem therapy collaboration company engineers in

presented the our monitored shareholders that front, new revenue closely quarter customers, in within we made is While acquiring significant timing food achievements industry the on by challenges X particularly safety.

to the potato-related known into food Simplot SteraPak headquartered food international for currently leading expansion a with to processes Idaho, Simplot incorporating we is Notably, for Boise, our innovations plant [ sold processing nutrition company facilities. in plans in ] and in ], other [ agricultural successfully Idaho. and SteraPak

plantation have on drafting initial their We [ operating standard ] collaborated procedure.

of their Nestle [ manufacturing heavily Additionally, facility. the Coffee, and for SteraPak use pet promote our who SteraPak Karina notable allow food Mayorga including to in clients, with ] found TOMI other significance their

in professional of group In has Michigan, virus our generated deformed a interest wing study keepers.

the our be SteraPak, The soon recent diverse its the Vizient sector. and GPO promise These in for will We with contribution solutions. in the to a innovative bees accomplishments outcomes with the positive effort associated to application meaningful of applications to holds care group collaboration our through environmental traveling underscore assist marking to save the expansion sustainability. health

significant product the of growth, iHP variety especially collaboration of lineup, The combined from groups ranging facilities to SteraMist sciences. for and positions well-established enclosure our life of new with and design partners with the pharmaceutical in decontamination engineering representation, expertise decades the

TSN is Patty TOMI for division. commercial enhance a providers, Service Biorisk and anticipated refresh Our association leader and Olinger, industry Network service with or figure and to renowned commercial the security our members

the for acting the Additionally, for additions in progress base our to safety us. sector, marked recent technology, our food customer first-time as referrals

your appreciate that call growth revenue patience, I I sustained drive continued CFO, our initiatives the Nick for near encouraged now over strategic position our term. to Jennings. and thank you and I'm to all turn in company the your I the support,

Nick Jennings

and E.J., brief a you, financial the the afternoon, of Thank good I'll provide third period. compared same quarter for everyone. our XXXX results prior of overview year to

was was sales. to X and consolidated XXXX compared million, to $X.XX to $X.XX was due XX%. compared compared to decline revenue was The compared profit product XXXX, Consolidated September XX% $XXX,XXX. loss to the ended our $XXX,XXX our XX, months operating mix consolidated profit September our For The gross gross million. in XX, net

or Our compared $XXX,XXX and per basic to was share diluted per or consolidated basic net $XXX,XXX $X.XX $X.XX share. loss

compared was EBITDA table adjusted $XXX,XXX. in of loss today's press EBITDA GAAP appropriate is the a included a reconciling A Adjusted of $XXX,XXX loss measure financial release. to to

Moving on sheet. to balance the

capital cash XXXX, million, our cash were $X.X was equity $X.X million working and of million. shareholders' equivalents $X.X and was September As XX, approximately

back Now the like over Dr. I'd call to Shane. Halden turn to

Halden Shane

Thank you, Nick.

larger establish hope I a vertical, great establishment scale a this be our year from in network sales of product remarks, up few A Presidents efficiently just amazing we and that us valuable cost time. learned was to to distribution have That this I and to and can being job key tried more expose TOMI E.J. us and shift customers. head you much from each to years ago, our mistake the strategic Sales Vice business has our team the of and and said, help done a right a partner network been to robust the it, building a reseller As an company. garnered have

decontamination to are we move through that profitability investors we and today to able we belief my sustained as going the support if in profitability of you drive quarter. for us our and execute, is It fourth the poised for Thank all be company. to unwavering followers And right competition, the our forward. joining should peroxide to XX to A for laid It space. the team the is in world is to the old. place XX foundation big who thank technology you around years world's least become company our the has to the whose time leader hydrogen in unseat at disinfection vaporized

let's We now open the the Q&A part please. of the questions, call call. open Operator, to

Operator

will is we Capital. [Operator ] with time, Street Adam this At our questioner a conducting question-and-answer first Instructions] And Lewis Frank session. be [

Unknown Analyst

this last seen How end few particular think we And about years? should we mix the a year have by market? shift over revenue

Nick Jennings

Sure.

developing most life terms to of is quickly. vertical In of breakdown safety continue really, a in that we growth it's see science as the that, And in food mature.

generate and revenue service. terms how we further really, it into in equipment, were So through break markets, of to if and down you solution

systems falling the we been certain because getting have of the lot companies projects can see engineered things us provide into. collaboration great are we're you've along, optimism custom or you for a these with If

Halden Shane

Yes.

CES I be think also company in specific and the vertical. drives systems forward what SIS the the that going will

Operator

[Operator Nelson, We hear . private Instructions] now John investor. from

John Nelson

And Dr. have I several Shane. questions.

Is must fourth of expect quarter. significant were you you revenue or mean the that The from quarter. -- case, expecting to be in last correct? end profitable the the should increase is, first mentioned one your that that if in you're statements this that at it And a it

Halden Shane

hoping are that. That correct. We is

John Nelson

be what areas increased would would that driving you -- revenue? might Okay. And think

Halden Shane

who new addition the and in we have it's and of in end verticals. life our of the the pipelines SIS new from think we've sales CES the onboarding, with that mostly system, that the the systems along on partners sciences significant interest of there out the transportation I Well, these the all education have taken

John Nelson

anything you Is did. Good. is stock? related from deal your in that question that The shortening documents the convertible prevents the the there debt next participants to

Halden Shane

also is. a that documents of of stock. restrict there There are sales restrict Yes, the couple shorting and

from So covered standpoint. we are that

John Nelson

you any there update is can question, next -- us And give ethylene replacement on any the Great. market? oxide Excellent.

Halden Shane

or ethylene of foundation it's some able it to regulatory It's restricting regular that facilities moment, Not still and condensing regulatory agencies a all a large At seems it. be OSHA who's uses and oxide of agencies oxide really. ethylene the these to because employees it's go once going that hitting standards. be for use specifically who and think creating just they're I But this still isn't. and going of will while, to John, to start users out

replacement -- ripening we it's and won't is it until and in industry we safety it's long and and We know used the fruits too that foodborne vegetables. the for product of for prevention the food think diseases be our think the

John Nelson

a ] neutralization in on there of has number Is Okay. concerning of Fenne the the [ a lot been news SteraMist? regarding people. anything use new

Halden Shane

-- I'm toxoid. relationship ] on we're they read do So hoping And Amy did sure [ that will hoping the other you've similar we're the press to in release Sentinel. that, study that a

As which organic use it's effecting of problem all and that we because a significant it's we'll systems, the is should United in concern police. I or know, compound, it's the be of the believe know, we compound affecting educational alter SteraMist structure personally to for able most all And an throughout areas, people. closed States

with it. right pursuing collect pursuing some to individuals also know data. that and the do studies We're the studies how we're And right

have within in XXXX. sure hopefully track I'm XXXX. not but -- So it by we're of something on to what part

John Nelson

any see, developments Okay. on the far as And with also food on FDA let's SteraMist -- new any -- treatment? as

Halden Shane

in in are companies process. label little a But more areas decontaminate X.XX%. this with and just pathogen want that our towards we're still many food regular kill, X%. to using nonfood We it that our get and We're equipment. in X.X% involved space We're to treat still to working able

John Nelson

Okay. report And Anything always ask I there? study? the UCLA this, but to

Halden Shane

I We as know published data and Nothing know. you the yet, good. is

John Nelson

is Yes. any cost-effective been the [ cleaning SteraMist require on The next you to able my you far related generally of Have can give comparison to ] after -- us between the versus that use question from tool ambulances metrics system. installs -- as comparison the transport usage? -- with the -- as manual

Halden Shane

I'm answer involved question, that system. the E.J. primarily going transport to let with

Elissa Shane

Of course.

transport. promotion So at currently, a are the still we on soft

in Red to are hoping have We partner there a them the to with with communication We with of ours next few Cross there. the development, we're hospital customer before on and install transports do the is the end transport our a stages sold who the working who well Germany, with as in is year. still that meet of the whole started the

in with with Canadian [ earlier they're we Tecnimont of with the transport released ambulances work also region. specialty. we're establish that metric. completed, the lot in them once the to and crash devices gaining have going that's testing But we'll designers be their We the able a on to of is We're certain working because a required traction some that which distributor ] that's on to of mounting in more year, still group, endure

John Nelson

preliminary a significant as far But system? indications using transport benefit the Okay. new as any cost

Elissa Shane

lack ] in use technology goes of line competitor on -- the Of iHP of course, grosveness with the of of with it in industry. course comparison our of [ the main

with the was in Red in that turn ambulance. and [indiscernible]. Cross we've study So over can the in interest case And which generated German released on speed we there's certainly a

John Nelson

the All back right. last to offering. debt And related is to, my question again, convertible

amount the you in a XX I and You so number of Can a investors of why think, large deal? size. had that's was explain for a rather deal investors, many

Halden Shane

felt lot this to have And more fits long-term company and a started more capital, forward. I and like have think investors. eyeballs we way will a now felt understand have could raised raised technology currently but the criteria amount back that we of Certainly, group always the when we and with our being I I be. what think Well, our that company XX are investors, we in off that the better group investors, have what small with I've going that we a the of

it. bring of difficult new did But job we that a education from ones X we standpoint, it. and of they with successful these why going that's And Capital, making many the ahead are all So did more [ lot help X terrific It's paper. sure did Agos obviously investors, to in in ] forward. and a years including or to just

John Nelson

a profitable Okay. Makes That questions you. I have. fourth the is I quarter. Thank sense. to all look forward

Halden Shane

Thank all. you. Thank you

Operator

reached closing the of question-and-answer We turn for over management call session, remarks. I the to have and the will any end now

Halden Shane

I hope to I everybody joining, thank want everybody has healthy just happy and and for a Christmas.

Operator

at participation. you conference, may lines for you your concludes and This this time. disconnect today's Thank your

TOMI Environmental Solutions (TOMZ) 14 Nov 232023 Q3 Earnings call transcript