SMTI - Earnings call transcript Q3 2021

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Operator

00:04 Welcome to the Sanara MedTech, Inc.

Third Quarter twenty twenty one Results and Business Update. At this time, all participants have been placed on a listen-only mode and the floor will be opened for questions and comments after the presentation. [Operator Instructions] 00:28 It is now my pleasure to turn the floor over to your host, Callon Nichols, Director of Investor Relations. Sir, the floor is yours.

Callon Nichols

good and you, Thank morning, everyone. XX:XX to call for like one. welcome thirty, you conference earnings MedTech's Sanara the twenty to twenty I'd quarter September ended issued link to I deck on afternoon highlight We Relations we today's release page. Investor like that the also to and post will our earnings our would Friday also this of transcript deck the call this The page. of the be release, as will supplemental on earnings a copy available a XX-Q, and

the prepared comments today. statements press Litigation and Securities We today's will Surgical of XX:XX Act allow in Mike XX Chairman; time our remarks the this Zack of approximately to include in minutes Reform of Certain five. Officer; nineteen conference within Ron call deck in release reference We from XX:XX meaning and McNeil, and information our President our to Financial Executive last for Private supplemental Nixon, expect Q&A. Chief ninety Fleming, statements this forward-looking

about risks or statements more to implied For projected annual like our involving statements. actual that by those call XX-K. could the most to forward-looking factors over forward-looking and Form XX-Q Now Please XX:XX the to from report and Form cause turn I'd see information results vary recent Ron. and on uncertainties

Ron Nixon

Despite twenty were These and surgical our areas. sales of of QX. planned and focus quarter revenue in million was impact point XX:XX point approvals, the due million twenty further in history million to expansion asset markets, QX twenty hundred sales. contributed and large the of approximately net point surgical each I'll Our the direct one-time two SG&A adoption, of force quarter dollars when five on introducing experienced overview advance was QX second sixty were of SG&A, or COVID-XX and sales three generated has in acquisition, driven of obtaining our subsequent Adjusted and to reclassification products. eight largely company our seventy focus sales dollars to for the continued dollars in SG&A territorial in due product the The and of percent one given you. an expenses Rochal increased as was in the and our XX:XX the as and higher expense increase second for higher incremental completed will in Texas, costs Delta to this that good team to Northeast, the morning, managers dollars Thank Sanara for related product an R&D and hospital twenty, driven quarter product by begin slides of one. variant you, sales. was surgical this from we force and two discuss thousand to was including marketing loss increased regional capabilities revenue this to eight team new to key the higher which million XX:XX six specifics twenty remarks commissions a expand that third in-depth loss by adding an Zack approximately high-quality then than net Callon, which everyone. well with compared discussion to research an we'll of his one. and QX pretended provide development one twenty in sales morning. XX:XX best

quarter, In additional the and for for third outcomes. are continue our we clinical XX:XX to our surgery our opportunities WounDerm. see telemedicine and and company's We and Skin to the our cost efficacy outcomes healthcare value in-home WounDerm of introducing Wound care continued agreement of pursuit and the and virtual demonstrate We of continuing and business evidence comprehensive an market related executed pilot overall improve solutions launched proposition a strategy. products to

licensed As part health proprietary with a this consult market agreement and adapted concurrently our signed that is EMR to expect be virtual in products for was year. of and forty care consult provide and wound distribution wound pilot to all this end our eight home states states, of care now group, virtual services, the we our firm. because licensed care fifty the MGroup for we in XX:XX For by

of critical our of Precision currently imager Healing. with is having are care They end the the our strategy all settings. possibilities partnership progress segments by the for making post-acute expect file XX-K discussions year. companies A to and follow managed and Healing We Precision number and across component a of value-based exploring are acute with are considerable and XX:XX of

Fleming you Rochal surgical business. product our sterile surgical to working market to we're Cellerate on now focus on closely well with and of part is pipeline them the market. as Technologies HYCOL know, the our our to next-generation As for over Zach Sanara, antimicrobial a turn as Now, discuss bringing it Biosurge, cleanser I'll with and XX:XX

Zachary Fleming

Ron. Thanks, XX:XX

continues approvals, in division of sales, sales and grow Our the to managers. sales regional we third the surgical our bringing In team, to territory added and total hospital team. our of nine people to size quarter, terms the twenty

to facilities. approximately At CellerateRX approved hospitals to ambulatory one hundred sold states across of in been continue hundred and in both see growth number our it end centers five over distributor products. We nine twenty increased in ninety and teams QX, the and and representing three XX:XX surgery individuals and be sold partnerships our have the ninety of was

QX, to twelve in XX:XX Texas and discussed for surgery products, in an before, faced to of we key our demand we approximately in interest markets due believe be Northeast thousand Cellerate ambulatory strong United are we've in our hospitals As centers headwinds surge. and the COVID-XX there few see used. where potentially the continued Delta States a we variant In could the

case, end our we procedures Biotech, announced as we that headwinds FORTIFY begin our Year-over-year, of have cost TRG a these eventually of through to FORTIFY we Matrix. CFO, our this revenue over launch us and believe postponed facilities. Subsequent our some surges, previous licensed with but been commercial impact Adding win-win the goal performed. to should discuss the these majority of has the turn contracting from Extracellular to products as operating products for will to we those quarter, McNeil Repair results. mitigate generate I'll profit in two Graft of to new to to working the opportunities allow the products that are to increase FLOWABLE and strategic ours have be the However, surgical XX:XX of company. it now Tissue bag seen Cook QX financial we and due Mike were per XX:XX

Mike McNeil

Zach. Thanks, XX:XX

we a During network three of of prior of million totaled point revenues one seventeen dollars the million five five increase from million year, strategy products eight the through penetration which ten new percent wound compared last prior of revenues compared to twenty period thirty, twenty, point represented revenues one to both the revenues of third generated The dollars for point fifty quarter, eight continuing in and revenues sales year. a Year-to-date twenty percent presence thirty over quarter the dollars to twenty third dollars four point September year for the million higher due one existing last XX:XX same care year increase surgical eight markets. distribution force of in additions in to our increased period. represented our U.S. were twenty independent the expand our primarily twenty

million to the of dollars XX:XX than two headwinds four faced in twenty variance same one higher expenses concerns. a quarter Delta have amortization The had were offset were case loss the than dollars loss million one gross point higher prior twenty thousand by a other prior for expenses one to we the hundred year, third one profit discussed, cost some and eight twenty. XX:XX year. quarter which point Zach four was third to COVID-XX million of dollars per dollars SG&A As dollars due for point one higher collectively net compared the primarily We million loss due higher quarter and of higher in net twenty was twenty. two approximately net quarter twenty depreciation, to twenty which third approximately Third period the partially quarter compared of higher twenty third

a of had twenty period of loss point thirty, was million the thirty, twenty for one Finally, expansion, sales. sheet, of SG&A the force partially loss and ended we on four the cash nine The twenty twenty. with one, higher to For quarter due result twenty a the four two The higher over increased looking to months twenty as position product higher financial few second net September back net sales will to by one a million for were primarily SG&A due XX:XX net of dollars Ron same the of balance months of loss dollars higher ended selling higher compared to XX:XX by twenty higher nine it revenues. now closing expenses primarily twenty sales four million in helped point we for comments. commissions twenty ended dollars our costs two at I September strong turn point four driven hand. a

Ron Nixon

you, Thank XX:XX Mike.

Virtual any historically, our we and goal health patients and by conditions pilots. continue in Console to third can treat EMR other and for home care to help company In care and scenarios while with offer pursuing As pilot health skin wound providers that the comprehensive major than and wound market care goal-led home we've discussed skin care launching our care quarter, that adapting to executing a strategy wound [indiscernible]. surgical increasing advance our vertical the services the penetration a simultaneously

seek and strategy. forward open any look improve have. Operator, comments We opportunities this to questions. you. questions Thank for to we That call to to overall ready our we're and may concludes you the continue quarter's expand XX:XX answering

Operator

for MicroCapClub. Our coming the Cassel floor from Instructions] questions. Ian today is now you. XX:XX is and Ladies at Thank open [Operator first question gentlemen,

line Your live. is

begin. You may

Ian Cassel

those two twenty be XX:XX Yeah, these do have twenty three products, on Are a Cook from the new that's those twenty of would I I to the the two two materiality in think you expect or or more company four products on guess material to is you products? Biotech. do question,

Ron Nixon

And this will when the turn you XX:XX to Ron is don't share can I'll over Zach. him thoughts Yeah. you Ian, these with on market. if mind Nixon. penetrating Zach your that be

Zachary Fleming

Sure. XX:XX

good they we products. So are believe very good, that

you We now. next there in five trials doctor some some adoption different to trials, I the as Gaining four know getting we're in a of and are are right produce difficulties amount midst reasonable will But revenue of the very products year, believe in seeing approvals going those with they some positive. that products. facilities, already approved. do are

Ian Cassel

see nine you. follow-up. RSM. up you're Thank I a I to that Maybe think XX:XX twenty

of I hit all fifty see where wondering peaking out to kind you do So, that was states?

Zachary Fleming

TM fifty need all we doing I are across states, XX:XX we covered think this model.

in penetration that I have heard see market. that's the starting think that, And is we're facilities. seeing we're about legs manager higher with model you there within to those great that, where that some get each territory great guys to we expansion model,

kind evolves a broad of on believe, And those of facility. that's we get so and number of within a forty kind that. really and to ability fifty into of of somewhere TM's heads, between that create good job dependent facilities total and that are into And of number network doctors, our doing

fifty So to roughly higher in forty I Northeast. it's think a density little Obviously, per going the to one state. in a be range,

Ron Nixon

sales of your we're them But, state more get territorial Zach cover able point, so off we as I regional mentioned, regional found can the to combination one managers, that of they leverage and Ian, XX:XX have sales than that's think, and managers. the to

Zachary Fleming

Great clarification. XX:XX Yes.

Ian Cassel

previous a XX:XX it for for the And product or Precision seems that diagnostic that market? the the saw like like company, your it Thank a competitive real product that? to on that it XXX(NYSE:K) just like what's filed I on Healing, have slide submission Maybe for timeline going advantage nothing approval you're to in a the Okay. is decks, seems you. follow-up,

Ron Nixon

We you, actually know-how we've It believe competitive very has identified device XX:XX we the Yeah. to do with in biomarkers advantage provides the Ian. than it. more data other market. that that that Thank any

with hiring a are been quarter. hopeful on approval FDA long process and seen of in been to just historically it impact. we the constrained it and had would like very less the it this COVID a ninety hard The how will or end has impact second we've have and to but we slowness that today's receive to by FDA As been their device predict, has approval take days

Ian Cassel

an it? iPhone-looking is What product? about factor how the form should somebody, like it of that like Is or XX:XX of sort think device

Ron Nixon

the engineers on And factor the lenses, be an that see little room on form Yeah. and that's that prototype you for the that of larger little we could easier camera. next use. time, of -- XX:XX the smaller It’s working need that into and was original what a potentially bit our are it already. generation iPhone than because to adopting different and Over for that larger that is the thickness a a now to filters

Ian Cassel

And about and product talk your Can XX:XX prepared to the expect I do be when think remarks, you Okay. to you within of mentioned market? Biosurge. that you that on potential have

Ron Nixon

I'll you let Yeah, Zach, XX:XX that. take

Zachary Fleming

XX:XX another there, and medicated a there we're what problems infection they're in great space. obviously in Sure, a entrants of for see the new for, consistency washes to few looking downstream potential a is hospital's we some market the thing looking a there battle you'll think in what in different or hospitals, already. And surgical way kind the

any they're as kind in reduce implant So seating well trying deep to when put as of bacterial infection. they an

is So rinsing and washing it a closing this product useful and -- area, the then of then obviously out the surgical in cavity very type wound. putting the

it's we into will do that So fruition three. opportunity, come a twenty good think think we the twenty really of that start towards

So everything coming this of year some additional twenty through the approvals everything we by two. get testing end and trials, twenty should

Ron Nixon

product of expect bacteria. XX:XX to our on on have have BIAKOS we the impact results Ian, same seen that terms type of And, existing we in

Ian Cassel

the last XX:XX to a the There's moving out you lot parts mean, just twelve positioned? story, maybe things. of you're one where on question. months, working Okay. I even maybe lot And do of looking of have hope company a

Ron Nixon

advanced that twelve next would months, have but as all component tell and evolving offset well. at involves able needs conversations are et parts consult, cetera six have look our care advancing those to within amount we focus looking surgical the of markets the way spending obvious some it's health, be significant the of penetration the in from what the developed areas you to ahead months incurred as I EMR on see capital, curve starting to our should that the to out We strategy scan twelve of of wound been more the add Well, managed care we've you beyond the on that And be to virtual that are. that home partners, which of the with by spent support potential strategy. those into our then a has losses XX:XX where

Ian Cassel

taking Thanks XX:XX my for Good. Thank you. questions.

Ron Nixon

XX:XX Thank you, Ian.

Operator

[Operator CBI Capital. you. is coming at Instructions] XX:XX Claar next Thank from question Our Evan

Your line live. is

You may begin.

Evan Claar

it prior us new? revenue Can are what And get quarter. and use? I XX:XX require number in Thank hospitals ninety that using five per and morning. against somewhat Good it many I the have of how quarters? hundred in ninety you. And approved questions five, you traction use? of marketplace. repeat remedial hundred CellerateRX's the inkling much maybe give how how interested large many users the from three cost are And some So per some in education. hospitals the see three I'm you

Ron Nixon

Zach. some you already you press site just let is in Zach, could historical the you of you Yeah, so I'll data, can release lot would. a of just -- And and that XX:XX time that take if the that.

Zachary Fleming

XX:XX Yeah. Hi, there.

there. hundred and good far roughly exact ninety more So or five, we one I three than right number, making believe them previous in that headway of quarter. the as it's are hundred Callon front about but might as the have so

to that and patient might we're the those approved. they do is type it for is hospitals different nine the that have looking has of healing. lot really is there where impact that goal a there Our of a fit some And where profile patient comorbid hundred find that need, so, next that our issues patients what or of do trying is

the course, looking surgeons that so and hospital, treat of those the for forward type And that's looking of patients.

in ninety hundred more And of well we is we're of we've that, so find as hospitals. both and it kind doing do within as and those but a hundred little seek expand into bit to nine four as that roughly, been start those starting hospitals to hospitals

whole the going it's really and very of that's goal the well. So thing

to in about those the know. a patients, as you to little So hospital patients, we're is not every of find types bit haystack a really that, needle of try excited has it but those

Evan Claar

to market, Thank is that on per or materially? you average one we're elements? you. people need seeing, a XX:XX TAM week What is this two because hospital these rise special much smaller guessing and I'm that per uses addressable with Can

Ron Nixon

about boomers people if et XX:XX Yeah. have ortho, [Technical that at are these describing other baby accurate them types out the of When those of quite at to in of matter I the a comorbidities, of the can because there then understand patients that and look a they the to don't you Difficulty] now patients are surgery, you of product there to aging. as hip help population Many how think healing have. probably them cetera number talking spine start and replacement the is is education a haystack high a of the having general comorbidities needle let it's that surgeons with surgery. due look aging having aspect

Evan Claar

Gotcha. get about XX:XX do hundred seven in use? you revenue And per

Ron Nixon

XX:XX ballpark. But say We that give Difficulty). for I don't just like (Technical to year-end number the out would

Evan Claar

XX:XX Okay. you very Thank much.

Operator

you. XX:XX Thank

further no any over back time, now to the management in at will turn closing have for questions floor this I remarks. queue, We

Ron Nixon

very We being in for you this really appreciate much forward the to and to XX:XX everybody we attendance. all Thank you today. future. participating in Thank continuing do look

Operator

does XX:XX Thank today's conclude gentlemen. you, This ladies event. and

a day. for disconnect and at thank We you may have You wonderful time this participation. your

Sanara MedTech (SMTI) 15 Nov 212021 Q3 Earnings call transcript