TLGT - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Teligent, Incorporated Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call maybe recorded.

Except for historical facts, and the statements in this presentation as well as oral statements or other written statements made or to be made by Teligent, Incorporated are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties.

or statements current Company’s for efforts or the of limitation, future growth its and without and U.S. success the offerings to operations, expected current and the example, Company’s about and file anticipated the and products, the ability For research product for development obtain future market size are and Administration Food statements. Drug approvals forward-looking for future products

and materially the The actual will anticipated. merely that are that Company’s the differ statements results approvals or profitable as inherently statements of assurance events. its FDA current make herein. Forward-looking future achieve made filings will and are uncertain, could no obtained levels There and from statements completed predictions be operations that the is sale company the and

uncertainties, its including Annual its on quarterly the reflect to risks description Company’s the additional statements developments. forward-looking and of latest Form new Commission, to The For assumes a to information XX-K Securities latest of Exchange and Form no please refer obligation and company update report its XX-Q. on and Report filings

to your now like Jason Please go introduce and would host ahead. conference, for Grenfell-Gardner, I President today’s CEO.

Jason Grenfell-Gardner

financial on second you more the update a Damian providing for of then our latest plans. be Welcome Chris, Financial Jason and the injectable quarter the the afternoon, good you, and the elements breakout joining our Chief you will Teligent, and I ladies of of covering detailed by CEO Thank for XXXX. us business afternoon. Finio, Teligent Officer. Grenfell-Gardner, this today business update second gentlemen. Damian our XXXX. on an and of President quarter to am core of our the and I’ll joined performance provide I’m Thank

gross base the Today, associated second underscored our million of continued results the we for XX%. strong Revenue with for quarter performance an $XX.X margin of quarter business. was the released that

second in quarter expanded of point since margin of X,XXX XXXX. the points by low We have basis gross now XX.X%

This was earlier execution plan attributable and label and levels to to our portfolio, Canadian margin stock margin chain. failure set of our ensure year. service our reduce product, out revenue focus this inventory the our private and expand of to positions, we offerings, out drive in stronger supply of growth in recovery To continued of that supply invest

Our we us for beyond during inventory inventories a and the the customers of $X.X this work unprofitable products in traditional lines or plan industry. range which that rationalizing period, offered completed the in our discussed our quarter, saw expanding invest we quarters the to three which million large of products customers prior further in

offerings our can In or distribution addition, private we elements tap of channels. label we our we have into continued new where expand to markets efforts believe

sizing. to products. orders levels label enter into relationships anticipated We with expect us this be bad in to come overall due that quarter new These of help the with even two can believe third profitability, longer-term we allow with demand more online can customers for partnerships specific sometimes predictable private continue though and lumpy quarter-to-quarter us to to customers

second we’ve capabilities will speak the quarters. we in will inventories improvement serialization. our an some this safety specific in seen over with turbulence business Canadian coming minimize Canadian continue suppliers the to European to inventory our line numbers behind the of recovery, stocks the to implement Damian some required our the quarter Finally, in but suppliers’ into try to build any upgrades to in our positions completed as

Topical Ointment. received second included the of one Solution Desonide X% ANDA U.S. launched approval During quarter, in and the the Lidocaine launches three Fluocinonide products. Teligent course These Cream, and

revenue some ability our and market our profitability. us broader products portfolio help that us platform in fundamental productivity R&D successfully respond allows drive provide in launch and continued to Our to changes a that

many obvious all so Now from our always online. has as the are sterile that it’s of the been know outside of know, manufacturing here far. been injectable to not magnitude that the that and for work our you site attention work I bring our much on you of focused internal impatient has progress completed

As roles success in we’ve Operations President Nicola, changes team venture. I the recently significant we Bonnell. Mr. of impact are to made and mentioned Ken Antonio two Quality, that our of President new conference a this Di Vice for Vice that on the as These new this, critical of June, brought Mr.

readiness supplement. first launch, identified our remediated they have be they prior prior few to their During to our reviews approval of injectable recommended submitting to a issues that

is We quarter. have the this and our anticipate will triggering file we that that work at now of end it undertaken largely We completed. submission

submission, timing of this FDA’s inspection FDA we timeline the review us have with For this accelerated product the and XXXX launch allow that before of to agreed may still their depending end the on review. and

both a XX manufacture drawing supplements drugs the and this coming over the development own well Following products the ANDAs our team ANDA X to we submissions submission, already already we and that I as months further new prior on developed our to as own have build internal pipeline. for first NDAs programs. five as that both to support continue batches will injectable expect injectable we R&D exhibit approval out up to

drug to FDA are continues people file continue about Finally, about This generic the inquiries the partners under product. the review our be of respond and orphan to to ongoing I process. its development FDA review know and curious that status many by

any provide develop continues course as as to opportunity of it that will is received. We update

of the Let the the turn me quarter. now Damian? Damian review call performance to over to financial

Damian Finio

topics. you, call, like would On and four I afternoon’s afternoon, cover to Thank this Jason, everyone. good

performance current second ability our and company’s line to guidance; covenant full quarter financial financial projected in third, second, year in the deliver previously lastly, market performance; and First, position; communicated cash with confidence our projected compliance. financial our

revenue continue of in earnings EBITDA drive to a and the EBITDA. product margin margins line those that performance. line financial call, we with quarter we generated start we would adjusted million last as expected improvement quarter, guidance, second $X.X In follow. million our line expectations gross with we supply that normalized top which positive the with I’ll XXXX XX% gross adjusted of On in said stated highlights in second posted positive $XX.X in quarter’s revenue,

Revenues second for the $XX.X million. were quarter

labeled increase revenues favorable first quarter by quarter. Topical $X.X the primarily quarter a Now of quarter customer XXXX, increase The quarter or that’s products. to improvement second comparison first XX% our of million topical over and XXXX. of by in million XXXX sales fact, over revenues, the Teligent for was line increased of the within $X.X the mix or XX% first driven the the in XX% top over in

contract Canadian to product the business of serialization over or Canadian $X.X increase the million back rebounded European posting our $X manufacturing partners, the successfully first quarter. represents quarter. Consequently, addition, million our a XX% second came after supply who revenue required in well changes. business In quarter This implementing our in online second

U.S. quarter the The improvements second the over and second XXX prior were mix in in quarter further basis an customer over is XXXX. favorable point translated XX%, Gross a improvement margins points the basis into of for this gross improvement margin. the X,XXX quarter

of expand and bottlenecks. financial For the our quarter, competitively our actions products manufacturing price our performance base, second to year the prior ongoing impact address positive reflects and our consecutive customer

by pleased and with supply than relating failure-to-supply anticipated somewhat quarter margin, charges past with to incurred the challenges. our returns second very revenues gross fees associated and although We’re higher dampened both were

We to failure-to-supply will product on fees costly continue avoid returns in execution future. focus to in order the and

attrition slightly cash expenses, is quarter operating million plan to intentional behind to and and This driven both with in flow. typical and as is million decisions Turning the in both projects, in we year-to-date order improve $X.X natural by well respectively. reduce deferrals spending second invested development and to $X.X product project development profitability as and

selling, to or incurred to we general quarter the in $XX of plan from year, first the quoted invest full XXXX, about guidance. decrease million is than in million million market our and the administrative expenses $X.X the which a first We $XXX,XXX full quarter. less SG&A of For previously year $XX of

fees continue have to and positive previous explained These the in reduce disputes, are fees spend more with in spending. efforts discretionary than we both we of filings which disclosed non-discretionary anticipated primarily the masking with somewhat to However, the of two are made legal impact legal associated SEC.

illustrate point, expenses comparing our to when same half ago, first X.X%. XXXX a of this SG&A period of Now year reduction the just results to reflect the

that expenses reduced this year we calculation over SG&A that’s despite departments. our have However, quality our from and legal investments incremental when by sales with and XX% to excluding made the expand

to in in expenses the operating can The focusing line deliver gross EBITDA path From EBITDA of margin the adjusted improved margin. believe execution the full a forged million margin in previous for of year-to-date year exceeding X.X%, perspective, on significant guidance. and margins EBITDA XX% an EBITDA healthy XX.X% $X.X we second by but positive with and quarter, improvements a we reduction in

the of encouraging in second management the and we performance. towards year-to-date with thanks team confidence the hard work several For point financial worldwide, consecutive of underlying our this metrics can employees second trends quarter perseverance the quarter, our to and

million EBITDA stock our after growth continues $XX an about foreign margin Our product XX% double-digit these reduced down of to $XX or previous a revenues Implied than from million. to non-cash adding million currency guidance $XX margin expenses. top guidance market of adjusted consolidated million, losses greater is in $XX.X in $XX and development be to in investment any achieving gains XX% with and back percentage line excess a figures to million gross

financial our stepping address like company’s well important projected cash of current increase. million two position, items, second recorded covenant as I to a the million June, our as to were from revenues in XX Now at increased The compliance. net majority XX% as our $X away from projected would June P&L, the as million That’s of or XX. March quarter receivable such, $XX.X and $XX.X accounts

revenues, $X.X of quarter second timing June, the the because quarter ended those in with cash. strong despite available we So shipments of of million

million decline million readiness down that’s at which cash additional are of $X.X million is which consists the paid; from interest offset other $X.X in of and our of credit quarter. million revolving more than prior first reported a by lastly $X.X movements costs, the $X.X inventory capitalized; facility, of capital. million on The the million $X $X.X end build; of million of million cash $X.X a of $X.X draw Now working approval

related holders of to less Looking quarter, June, to fourth interest due ahead shipped to the expect bond we through normal build the product returned in quarter because we cash in because less payments have second revenues quarter. strong in next levels a majority the given is inventory collections, of cash and third the

we these With sustain mind, cash business we needed to plan. are and our run continue the in the can executing confident factors levels

ability of share for obligations covenant perspective like financial meet remainder to Lastly, I would the our year. to the on Company’s the

in for mid-December meet Form-XK more the we’re the and covenants to term further than in credit covenant covenants and on revolving on Ares the with required financial filed disclosed to term the purposes revolver XXXX, loan, facility I financial via so will detailed today, revolver requirements. agreement As refer the discussion are The the of loan SEC the restrictive loan. certain

XX Ares that trailing million in on loan consolidated is to second required to of meet covenants million, of quarters month XXXX consolidated In Form-XK $X the the greater and mentioned. million covenant we EBITDA am respectively. were of referring greater quarter a and passed. I just third filed meet we $X first trailing we to the required EBITDA fourth XX $XX and here Note, In month agreement XXXX, than I revenue the than of defined are

the to a This provides in expenses However, as add-back certain the calculation leaves an typically during in relating given discretion for to ability as qualify interpretation. room the the use EBITDA. parties it’s business incurred of some determining add-backs of both case, agreement, adjusted quarter the consolidated allowable when language particularly

as as the well the respect XXXX failure-to-supply in Now EBITDA. of recorded in and certain add-backs a of during of Teligent the fees on allowable ending to transaction agreed adjusted fourth beginning be X, loan debt one-off portion agreement considered October XXXX noncash loss will fee Ares, incurred quarter XX, consolidated with extinguishment XXXX calculation and period the as June

XXXX for million. $X.X XX, of Even, financial purposes Therefore, a nine positive adjusted guidance today’s of on full year months of trailing June reaffirmed covenant is as our consolidated our compliance EBITDA we call. ended the

XXXX the We quarter also covenants. both and project pass fourth that the company will third

XXXX margin with closing, XX% to the financial gross by XX% are encouraged second gross we our reaffirm and market the quarter In year-to-date. We in our achieved pleased the margin second most and quarter guidance. performance ability deliver achieved our

confident cash will are plan. executing needed that levels We running to continue we business maintain our the the and

will on Friday, of More lastly, be provided X. our be later second details financial scheduled And for company to filed will financial August year. quarter we XXXX than the no pass performance covenants the XX-Q in project remainder the the

and Jason begin to of like the to closing Jason? we the comments before portion I’d question call. share his ask Now answer

Jason Grenfell-Gardner

like Damian, Thank summarize you opening today. to we up business questions, I’d how before for view our

First, U.S. we endeavor before business injectable the incremental capabilities. manufacturing a value and have of base to profitable our

We reflected past to continuing as quarter in our guidance, have the anticipate and achieved this during do financial so.

injectable their getting means that milestone expansion accelerator it patient’s Getting this sterile drugs serve the our getting significantly. produce and critical it Getting for than more our important need. are is and it delay of means right that however, financially right important as Second, profitability to it safe, right needs wrong could this ensuring because we’re medical able business.

finally, a other right the the our right our whether value. opportunities. give work progress. other incrementally drugs manufacturing make would in to drug third, as Teligent families. number up that core to of sure business to and or confident generic focused got we that development that Each I’m to place, represents own our has of core on we’ve live team products projector they this upside And have a our our opportunities, positive value, partnership we orphan development we ophthalmic these

elements pushing in of delivered the who of conditions. business Estonia financial exceptional working who team done. people and grateful things U.S., these get make great good and forward. have to feel Canada, quarter I’m us and all tough is keep folks up this about who a future of the made markets our in of challenging even the three These Teligent, of in Teligent phase

With up let’s to that, open this questions. Chris,

Operator

first Matt Hewitt question Thank from you. our Craig-Hallum with Instructions] line comes And [Operator the of Capital.

is line open. now Your

Matt Hewitt

afternoon you Good providing gentlemen for thank update. and the

Jason Grenfell-Gardner

Hey Matt.

Matt Hewitt

an on number us First pipeline, pipeline? one, market pending ANDAs FDA well as that for the maybe are approximate that give current the size an Jason, you as update at your could currently of

Jason Grenfell-Gardner

sure. Yes, Matt.

total ANDAs that about there pending. XX and supplements is in FDA. saying IMS So ANDAs billion $X.X then are I in believe that addressable FDA things partnered I’m there at today various also well The other two right as intelligent at are as And data. market are

As today. injectable down are triggers make But also us for be to these that not well, where the sure new working that projects, new supplements see that we going we but of to are pending to you important get products. be that’s it’s because only pending path as also can applications those stand

Matt Hewitt

correctly, got to And another five correctly? the you. I Thank that great. That’s few you eight to you’ll file, Is going that injectable you’re next to if then you’ve XX so hear have I will did – PAS heard filings over so there – be the XX and behind that XX, quarters. that

Jason Grenfell-Gardner

correct. That’s

Matt Hewitt

filings relaunches then to R&D? be Okay, and thinking we that result the the as about fantastic. new versus on And of XX should internal far how mix Teligent’s supplemental or as number that of were XX,

Jason Grenfell-Gardner

than internal we’re developing. I would time, say projects more first the in projects become rather of they’re the that they’ll over supplements. course, of And probably XX/XX then

Matt Hewitt

more Okay, of you’re driver next high now? on give maybe from your Could maybe right a to what injectable us be and your where here. side and level going be years. maybe all into market topical that’s side then to going right. you dynamic going given overview And few that’s your then the for you’re opinion, the the seeing First two

Jason Grenfell-Gardner

Sure.

have sought of expected. significant So There And fairly of address market. those went in what attracted the It wasn’t opportunistic markets. weren’t reached because again. when look, normal incremental to fairly as opportunity. inflation market period we arbitrage equilibrium Those and saw people declined time through they those across it forms. competition have market. uniform topical a Again, That’s would the were specific that wasn’t many molecules really uniform, I and the us think markets into a the was a price specific

portfolio just through markets our of of space. topical exiting what sort sense. to many hasn’t have the you And in started that markets for looking changed address and see collapse. a that ones is the We’ve bubble means us, that at It in and market derm, dynamics the falling that makes everything if you’re across the fundamentally strategy that in in can you’re gone that people

their drugs seen And as I people them, think, aren’t as continue that or supply chains. complicated as realign to like that profitability around well approved launch more folks than developers. they get people expectations also support to who were and as necessarily manufacturers choose couldn’t markets see and exuberant as we’ll not We’ve perhaps chains supply as were are us

approaching a bit today market past. the is more the stability So of kind than topical had I it little in think

place. changed. injectable on the look, these On logic hasn’t you our over see to all front, the that disruptions And injectable pop-up market continue market

In impact to it’s using important in premise possible think that able in we as fundamental to a technology lot a that manufacture go affected these to of on to be pretty and this quality with forward. that’s markets, control in of strategy fact, control costs business regulatory the supply given the execute manufacturing the amount best good our started we the puts position we that us

we So still strategy We market. there continued by be opportunities are that there think and to that great [indiscernible] excited

Matt Hewitt

That’s great. it think quarter what I one back Maybe Could should hopefully remarks, in but the heard the expectation? QX. prepared those quantify one half in of in the penalties last the failure-to-supply you is you were away year, I in and essentially so say go here the your Damian. for here

Damian Finio

Yes.

in the of So $X.X the second XXXX fees, were about Matt, quarter failure-to-supply million.

for fees time call, the You when than those reason of an timing they we accrue policies, the – first is opening were not current $XXX,XXX. inherent we lag challenges, more mentioned there and I for timing invoices, failure-to-supply $XXX,XXX past than challenges. relate booked recall accounting to in quarter’s of our the earnings invoices. do our is we remarks, from less in given The just therefore the second failure-to-supply last received as a just the the the invoices But those and quarter

there So are current no challenges.

Matt Hewitt

you Thank all Understood, right. very much.

Jason Grenfell-Gardner

Matt. you, Thank

Damian Finio

Matt. Thanks,

Operator

our Thank next Wilbur the question Elliot line from comes of you. And James. Raymond with

is line now open. Your

Elliot Wilbur

afternoon. Damian, and can for topical injectable just Good ask between the to Thanks. split repeat products I the quarter? revenue you

Damian Finio

Yes.

pull that. let So me

products for quarter the was quarter million. second were topical for about in about we So the at and Canada $X Elliot, million $XX.X

we that between in up reported So development. portfolio between $XX,XXX,XXX contract the made the U.S. our the difference is manufacturing and product injectable

Elliot Wilbur

my to But the And talking mix. thanks. margin performance, little add to mix maybe is some to assumption and volume then price of pricing. on customer majority strong of better additional just in customer Okay, want impact of down relative bit maybe relative if you base the terms gross and that that drill to a is color about the the on further

Jason Grenfell-Gardner

Yes.

I there. So jump I’ll think in

I of bit right. customer channel terms and little issue biggest the think mix there in is a then strategy,

investing And penalties margin. So the you thought we position we last for return add so the things did you and economic you’re driving in recall on risk gross of third complexity significantly are of quarters a in that we failure-to-supply looked one the were lot and was at jeopardy. that then will of portfolio effort us fourth the you a products, were year, really those giving we’re them, down not and things in of that work related that not at the the double when the to that of

second saw half So we the the first we quarter. that of and that, did year getting the that’s up important continued rid that of in in back the in quarter work was cleaning this that

is of strategy around this the The second channels. really part

incremental coverage key able So consortia we’ve addition this be the the in the our of been in longer what obviously, continued customers big to I business. of the But tail business. call more the sales to add three through resources to would customers, customers

done effort. it generally touch cash It team Now congratulations a they’ve business. us work good better the more higher predictable. lot much our there. sales It’s less takes a And it’s lot to a a for provides margins and collectability. But

mentioned, course the partners of to part worked label as story over private that’s is, been couple we last would well. six the the the thing of I as part being past the of I course months past were And And looking really of of two forward say an we’ve important years, private label over but incremental customers the with that.

we to use the do As really things the that to get So not by markets might in are driving think end about, we that ourselves? are get margin. that just portfolio those to we improvement how

Elliot Wilbur

cash processes with mentioned of with recommended might respect additional filling or And of Jason. Thanks, respect Are thinking term costs to completed. steps was are the filing some your recommended impact modifications steps some speed those how Okay. of the those there longer to of a largely the some initial to by additional those the addition associated actions? members, with Then with any or FDA PAS that future team your high line?

Jason Grenfell-Gardner

to to consulting There us year, So obviously, system. this non-sterile have manufacturing resources to of degree a done there. add by earlier the remaining harmonized a was are, complexity we brought was work as in significant we of topical had we’re sterile to terms various what differences in side. running identify that be on what in help the this to capacity And you know pretty just do

on absolute we work of investment he Damian cash resources the through And to there to as second Most outside was we’ve quarter those goal reference an second to think the minimum. the changes. year I got talked as completed in was draw and our down made this that earlier about quarter consulting made

in as look three of specific, helping complete. to complete. quarter and that largely third who largely are this that beyond, process the parts So folks I or are two is that forward is maybe but There

but organization ago. have of XX skills really new to bring the months build on together Compliance, not different a course in In new the has remarkable with capabilities we the addition, even of six team the past a continuing in-charge quality It’s that talented Quality, out to the done over building team only of microbiology. really person of months, individuals, Head new in Assurance, group up continuing remarkably our a it VP than job the a Quality a HR was

what also we being and in encourages have team trajectory injectable for robust that team as for not the need to but eventually only the commercial of high-speed And future at the us place, startup of addition capabilities, really management a manage able the beginning what a of we the the is of do production filling think to sterile I line.

are want that go, I the a to high-speed first running, position go make we in and now line. see the right sterile online decision think filling us the no of capacity we approved all investment on before

that’s I think we good success we feel of really but about our inappropriate, chances that have. prudent, with the team that

Operator

question of Thank our Henry you. And Capital. last comes Scott ROTH the with from line

line now Your is open.

Scott Henry

I Thank a of good you afternoon. questions. and have just couple

concerned million regards are in First, adjusted generated XQ you months relevant. I from that because you with the away better XQ. June? XQ. is, in Did be The is, in to any need But should less you when comfortable that. it’s the orders XQ, do like $X.X take than QX? looks you obviously covenant, QX, to going is which the they I is EBITDA only look than question other question now to Just do about very the generate around math, have It may a how into color in

Damian Finio

is, start. this I’ll Scott, Damian.

$X.X agreement. loan The of for EBITDA adjusted the So end the quarter the of third trailing months nine at $X is we’re million. Ares at covenant million

XX-month of covenant the $XXX,XXX or quarter. next meeting trailing so short So for we’re

number a lot higher a I think, than your that. bit higher, was

the year. of For $X the by covenant end fourth quarter, the the is million

again trailing months. XX a that’s So

at we’re about consistent gross look that you are we our if and margins where our math you’ll we see think, those numbers do guidance, the I at, past opening said reaffirmed remarks. the and again, we with those covenants would So what

Scott Henry

not positive great. I The perhaps, care you’re much some to I’m question cash. the is you cash this the you in strong well do seems to now when momentum, gaining financing do leads QX. do from taken business turn running with kind seem you what how the up into in the of To and get back to Okay, great. still certainly, any. mean, business covenant which if clarity, flow ways of kind till adjustments regards switch guess, is, Thanks that, The are you if this for in. question, that be think and adding I there of, expect to to results be can need to flip

Jason Grenfell-Gardner

end. So can at start then jump I’ll Damian the maybe in and

very So look, at are Teligent cash we try sensitive to we that I we think efficient a Obviously, that position. to as can. have as here our mentality be we

our We’re sheet. balance sensitive to

the made We’re to in our they’ve sensitive shareholders that business over also and time. investments this

that that we in for have choices make accountable capital discipline and the us the business ability we been a of during I’ve that drive it’s sense here made, $XX time, that we did of last capital seven of holds we’ve that this that million business. as equity allocation equity all financial is and in and raised us that think decisions our rigor investment important we’ve total And capital. years because the I to week a to profitable

And mode efficiencies, capital that we the discretionary of that a were move a great facility, that can. as that operations really spend should build the We making we sure continue team I the of past job focused and we a that business Damian, great of sure operating that. of course to feet. a we’re finance we’re team stand from shareholders able mode on very fund, without the on losses the making a should really continuing that job own over they’ve and its investment where believe operating business done think two making with year or the sure have buy done lean don’t being operating reducing and that

continue to discipline. have have We to that

have, the we looks based that set we cash and out believe to necessary has like on that we in have is hand what we the Now And pull. to the receivables have run this business. Damian that levers

this piece where piece, maintaining pressure the see I thing, and injectable of sterile start to getting degree think as a that’s starting finish up cash that the line through I to we of probably really work start you is good think to scenario change. this flow

still looking to mentioned our leverage I see we to to to forward. grow my that’s continue take this we’re continue remarks, as revenue drive begin the to real and our at business we the of our margin EBITDA, to into continue As grow grow But end the operating where business.

Damian Finio

add of just a I’ll thoughts. Yes. couple

the So behind is disbursements people to we’re that to last down facility really, on firms our said, was of related a so handful the largest spent consulting Jason facility, the is various winding of as down as Jason bit which said, cash now. with we’re consultants,

we’re second mentioned legal we The that still on, need in non-discretionary an are these eye expenses, given is to defendants somewhat keep mind I something lawsuits. in keep two

and guidance. need failure-to-supply to thing avoid The we other execute is

accounts think as things, where a we’re ended X.X to for million, but cash the sales online. forward, second of to than was contract cash receivable I timing our start where we XX% manufacturer position we these our and get more back comfortable, again as quarter look more quarter given coming the partners came combination of European the in given a of we’ll June, were up build

there. build say I So of Scott, to cash. achieve but and I’d takes like couple we’ll think comfortable, there’s forward puts and execute we guidance, we’re if gone start

Scott Henry

Okay.

million to done? to we expect you to do draw-down have or I quarter. you – now cash think more profitability, feel heard that what is, asking what just raise don’t is, you take But you that’s and anticipate confirm $X have to kind I’m and you draw-downs you the additional that the the we So, to equity heard. to did reason is in guess you’re adequate I seem any I of have having Do

Jason Grenfell-Gardner

Well, we’re this I at think point. done

of I position actually we’re quarter. at today were at point the out better we than a fact, that cash In the end would

expansion that So quarter. of said, in see received the starting end at had of Damian’s the we to as the are all of and receivables I mean that those we logic –

I a lot that is it team, but and us think, sheet requires something balance continue plan path definitely So can work maintain to to today. discipline our the with is rigor. look, continued requires the that deliver – It of of have and we on we execute management

Scott Henry

not that. how probably that Okay, XQ, I down to profitable a realized think just we model great. that it the sales, a most kind lot was model. specific number? Contract about your expected new final a should And questions anyways, into, of sense I to in trying business guess lower base in get it’s of just lower on for but one

Damian Finio

Yes. a going days in contract into Look, contract drive It’s a appointed so grows, CDMO for it’s right now manufacturing how to to I changing. year contract manufacturing manufacturing, this it see that, label I business. business. flat person We but private we’re pretty think is early new think and

Scott Henry

performing just And you in better question, we you you if other did a some maintain to given regards kind to with of assume and do should of don’t Okay. allow have businesses the any you that somewhat prior your revenue final, then quarter injectable number of delay that, to is the and final guidance, there? a

Damian Finio

year. of million, end the launch Yes, – the of that our of at We guidance very we original by that Scott, in the underpin the $XX.X assumed assumptions in the time end a had launching the towards year.

the very relating So launch injectables. the of to there’s small of portion a guidance the

Scott Henry

Okay, great. Thank the questions. you taking for

Damian Finio

Scott. Thanks

Jason Grenfell-Gardner

Scott. Thanks

Operator

turn and now will answer CEO, question Grenfell-Gardner and Thank you. I Jason for that does remarks. today’s session. President back further the to call any And conclude

Jason Grenfell-Gardner

Thank support. Have various for on to Thanks to our us. you upcoming call Thank We for you business you this you great this for continued conferences look forward continued this joining again the team your the us evening. Teligent joining and a investors at Chris, and of to seeing performance this evening. thank everyone fall. all of for

Operator

today’s participating gentlemen, you Ladies thank and conference. for program. This today’s does conclude in

disconnect. all have great may You Everyone a day.

Teligent (TLGTQ) 5 Aug 192019 Q2 Earnings call transcript