SMTI - Earnings call transcript Q4 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Sanara MedTech Inc. Fourth Quarter and Full Year 2021 Results and Business Update. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Callon Nichols. Sir, the floor is yours.

Callon Nichols

morning, good and you, everyone. Thank welcome I'd conference XX, Sanara earnings to for like XXXX. the December to call ended quarter MedTech's year you and full We on our would Relations page. and that issued will Investor yesterday also we deck to highlight I today's post our earnings like afternoon, This as be will available a this page. well copy release, the earnings call, supplemental Form of XX-K, this deck, the and as of a transcript on

this reference remarks in information will We today. our

Fleming, to Private Zach Executive from to statements Ron statements for and Nixon, Mike in the release call We Chief Officer, Q&A. of our conference expect of today's XXXX. Litigation McNeil, and looking Chairman, and within meaning our prepared comments last Securities Executive Act approximately allow Certain Chief Financial Reform deck, Officer, supplemental forward press the this XX in minutes time include

uncertainties forward-looking about that implied from information by risks could the on annual see Form XX-K. actual report more those results cause factors For forward-looking vary statements, most our to and statements, recent and or please projected involving

Nixon. Now, Ron call to the over turn to like I'd

Ron Nixon

Thank a you, $X.X loss morning, Callon, in $X Sanara XXXX. million of fourth net the quarter of and revenue and million in generated good had everyone.

XX% year, $XX.X full revenues For the the million, increase representing were prior a from year.

the was Our sales record year. generate from COVID-XX fourth net in our Despite full million. was both XXXX loss to and able surges quarter surgical in impacts $X throughout team the the year,

high in hospital product EMR our sales to remarks. of new territorial his work continued WounDerm. the force, and regional our was this surgical on experienced the In investment cover method team will our loss gaining to introducing and more year, fourth the net we by accounting increase equity recognition Throughout on to and focus approvals, of leadership Precision Our driven on managers quarter, driving costs, the additional Healing. products. adding continued in an losses quality, Zach rollout SG&A, in largely of adoption, IR&D sales for our

the are teams. home for the completed service The quarter, board of segment, WounDerm his and first made promote continued skills, part years and the as the to advancing strategic we in down Zach Fleming thank health changes Chief recognition the industry his Carmena to today. in Mike at position to virtual Mike decision fourth pilot his in in leadership the where Principal of additions set for helping Officer, made to our as strengthen we from company teams also foundation Executive and of the differing Mac, We and add board stepped December, December, Vice value-added industry and will Roszell board retired and members, their for In this the our Executive appointed expertise we perspectives the to of strategy. that to continue take like I'd and and to the as consult expertise. vision, execute our to opportunity Chairman experience leadership board, and platform. Tanzberger, Board were In Also, of to our confident I'm both development Eric Officer.

discuss to Fleming results Zach to our over it more turn to like in I'd Now, detail.

Zach Fleming

Ron. Thanks,

managers, of sales, additional an in that or we quarter, sales the team, person surgical to Seven continues the field In hospital are terms and grow to these to team. territory the fourth TSMs. of total Our our of added individuals. and XX team our size approvals, brought sales

regional by sales the they the compared in the penetrate work forward, TSMs of or proportion to generally to receive sales The lower regional sales covered managers, our our TSMs, to markets increase a and managers, continue Going salary will we further RSMs, RSMs. force.

business and and will representative utilized establish to be markets, they to continue coverage. will model RSM our the grow While open

of approximately ’XX, representing in X,XXX our year the States. we QX, distributor That number Cellerate of hospitals facilities. of the We been end during in XX sold teams had our both increased And and over full continued in individuals partnerships, was when sold across to or see approved and and were the at XXX growth in be ASCs products. to

we sales both the As our the across United increase in in be for mentioned, and a we And Surgical key for team we've are for hospitals facilities. high throughout geographic the also the adoption we believe Ron quarter our as record could approximately company. in as area, there months sales and to In before, larger see sales XX,XXX year. discussed continued within a Cellerate year, was interest December saw States and ASCs strong as where And our demand used. QX, achieved the well wider products. record an

and We saw is for formally Graft, launched FORTIFY FLOWABLE TRG payment group FORTIFY Repair first a we setting, is product TRG included Matrix. Repair Extracellular medical QX. for FORTIFY Graft in Tissue products, And unique diagnosis two also in FORTIFY also FORTIFY innovative payment. our MSDRG of part Tissue sales FLOWABLE Matrix of facility's hospital considered each related the the TRG Where, in the severity case. Extracellular

HCPC in for code, performed. a the unique surgical However, each centers, packaged under and or procedure falls is it into code ambulatory a H-C-P-C payment facility's

pilot Midwest comprehensive and to the home saw Turning for space, of positive one our licensed to consult ability from virtual additional virtual partner the to agencies we offer wound number QX to XX strategy, in expanding have six and is all offering continue discussions in value-based at-risk in the healthcare our our In services. committed QX, healthcare consults WounDerm/Mgroup care service is to ’XX. States, companies. a with results, our expanding in now an

the if The now commercial with well. Sanara Rochal using to design, excuse to with the the me, have submission be EHR and market, date Homecare design, strategic employees integrate unit If integrated The submission Precision health mobile Technologies, filed WounDerm of had antimicrobial are being app. Homebase, end implementation home into over HYCOL, our to beta’s filed we we a products, commercial the the next-generation for to before decision well is had to as new Healing Mike McNeil QX, Imager XXX(k) the prepared FDA, for using Rochal the continue - work on provider submission in Additionally, beta required unit surgical as due discuss we started to to the unit assets cleanser design. it a financial been the than would to The and file a largest file with is as number added BIASURGE, expected we I'll filed the Rochal of the in the turn on target as was including our and the rather sterile Cellerate market. process to results. changed beta QX. now we fully

Mike McNeil

Thank Zach. you,

strategy year. XX% addition Rochal sales payroll of due higher year distribution year products, we million higher expansion sales, product to revenues and of result primarily continue were the costs and XX% and XXXX responsible compensation XXXX. execution $XX.X resulting with further, XXXX, force December the force force million - sales X% responsible were expand $XX.X XXXX, commission down Breaking sales markets. the XXXX, represented million, for the approximately of for ended associated as XX, costs operational and XX% due of our higher December of higher The midyear million of and in For XX, a expansion $XX.X equity XXXX primarily increased were our network to sales $XX.X technology higher were expenses to for higher new WounDerm higher while for compared Non-cash both to SG&A operational in sales our increase, in XX%. over support expense accounted expenses the expansion costs, our compensation non-cash SG&A wound related the the of to independent of costs of to and US and the support, the from WounDerm as revenue Rochal sales in to selling increase. we in prior related SG&A commissions of related generated compared existing higher in launch higher increase workforce, care equity sales of little costs our was increased a platform. surgical increase, revenues The an our to

and the related the pandemic. XXXX, costs those XXXX, accounted activities the in in increase to of increased X% promotional for addition, costs had activities in-person COVID-XX or In postponed SG&A. These as of travel result been canceled after in a

of XX, XXXX. December expand existing our and to we new reach managers strategy sales continued markets, part in since sales field our employed As XX additional

was R&D the was Cash For Healing. Precision net ended a we hand net December equity the SG&A higher recognition at end of a the Cash loss of year method XXXX investment XXXX. discussed, $XX.X our which quarter inventory the The of to on costs XXXX, million. in due expenses, loss turn and build, strategic XX, large $X.X negatively had to our higher in net was may of on million. $X.X was in fourth now compared used year fourth year full fourth operating few approximately the $XXX,XXX. loss million Ron, be million in increase increase it the in over in $X.X mute. closing a Ron to quarter the was year-end used for comments. activities for back The the I'll to due quarter activities cash operating in Cash in impacted million. you $X partly by

Ron Nixon

Thanks, Mike.

fourth the team saw generated the quarter both our adoption full of in sales discussed we of record CellerateRX. the XXXX, As continued and and year

forward new the That Precision potential Healing concludes remarks, on for open to development. you pursue partnerships we call Thank the our questions. questions ready look comprehensive our strategy, have. may answering for to any you Matt, to continued wound and We while and progressing Imager product we're

Operator

[Operator instructions].

from Your Cassel first question is coming from MicroCapClub. Ian

is live. line Your

Ian Cassel

amazing Hey, also congratulations on and an year amazing an quarter.

And I One obviously numbers above MedTech guys or anything are order executing. in of about that making QX. when stocking contracting. showed wondered, mean, just why some thought in were on execution? over QX there abnormal I I positively was sort I guys other that acceleration every of But almost track of QX a kind I excuses was they normal the about that's also of was skewed you a company had anything questions nice kind and one-time sign QX, the you

Ron Nixon

Ian. you, Thank

Zach Fleming

go is ahead. Zach. This I'll

Ron Nixon

that. right and ahead go answer Zach,

Zach Fleming

Sure. done. opened. of unusual. that COVID There were just the was from had surgeries say nothing being More kind I would gate

the of was of our course, backlog surgeries - are elective. of lot Some a

those were so, And done. starting be to

we that it nothing stocking unusual was So, but to in nature. fourth related less that of a COVID or I order, anything or quarter, had problems, say, large would

Ian Cassel

is of normal I year? vacations like Zach. on question like the to historically, normally is of the follow-up that. seasonality because What other a cadence surgeons a the any QX weakest know quarter the in kind and year? the amongst there things that, of go kind Is Maybe lot

Zach Fleming

think quarter tends heavy. We see that. pretty nailed you the be to I that fourth

to start vacation can of the surgery, to do ability the as have maybe time, end you and putting people As et to cetera. deductibles imagine, off their been come their they've

sometimes the holidays, and medical. right typical see And We tends with throughout a be heavy. that lag after you So, that's fairly can to mentioned, be as little I vacation. think the summertime the seasonal

you’ve on think right actually I the head. So, it hit

Ian Cassel

Okay.

Ron Nixon

thing geographic that I coverage penetration that pool. fact of in a we equivalent that say and that MedTech to more Ian, of that leads that expansion with our now, our one the we larger you're the continue we're would other other tracking, the hospitals, pool have fishing grow is companies and into outperformance to

consequently, So, outperformance. us aids it in

Ian Cassel

January? of mainly Maybe and in COVID of kind able impacts that other of were you is, pick up impacts in obviously usual of as on business kind other you COVID Was guys kind Did see January. the question areas? material in to had side from it

Ron Nixon

Zach.

Zach Fleming

there. hi Go Ron. ahead, - XXXX In

Ron Nixon

say, to confirm No, back think but strategy think executed continued more I our and going we to are just being Zach much things was I is this, will normal.

anything And so, not we're unusual. seeing

Zach Fleming

So, echo that. I’d

Ian Cassel

then in jump last just back one and the queue. I'll Maybe question

you that one what of Can the You would potential Maybe kind a agencies. mentioned agency of partnership agency? your to a expanding explain from building? that little that an a kind more? it's WounDerm of explain Is bit be if Is pilot six Like that successful. territory? what is

Ron Nixon

healthcare a they've in that where Yes. but patients the that location terms is got of - XX-mile they company differ An populations. of agency they the those have in they patient - draw is quantity or less a it's region, have for that radius typically of they the home that that from cover do they

Ian Cassel

Okay. Thank you.

Operator

you. Thank instructions]. [Operator

next is Your Capital. question from from coming Scott Semco Weis

live. is line Your

Scott Weis

Great guys. great year. morning, Good quarter,

March to January, comment in follow-up now strong question, the we saw you see through February, growth are continuation you you a fourth the quarter? Did first the can that As Ian's on a quarter, trends? through

Ron Nixon

forward-looking that continuing disruptive any summed factors seeing we kind Scott, think that. really I I up to giving we're avoid it what try said hurting are statements, to our which earlier, any strategy, is, but execute and of not we're

us for business say, as it's would I usual. So, just

Scott Weis

Okay, understood.

Because As if to like events, intention you in a conferences, Do sometime like can expect? your to follow-up, can you that investor participate relation XXXX we talk you possible. anything that any investor strategy? on road, about in meet have the I'd

Ron Nixon

Yes.

turning that be go We to we'll to, We're now. yet, normalcy and want to post at decided looking haven't figure Scott, out trying when schedule's We're travel back let et what in that we because advance. to conferences we but determine know cetera, going everything schedules. you to our that

Scott Weis

you. Thank Okay.

Operator

instructions]. Thank you. [Operator

Your next from MicroCapClub. question is from Cassel coming Ian

line Your is live.

Ian Cassel

I Yes. talk think maybe about for side a question a we wounds? monetize code to on your part kind that? that into intend follow-up reimbursement tap product. of you how diagnostic Can and also disruptive you how Like of had how strategy, Healing as on Is and Healing, strategy? kind should about the Precision your reimbursement there Precision can into that you diagnosing the more fits little long-term a bit wound of

Ron Nixon

Yes, very take question, I'm happy to Ian. that. good

distinct system what and We for imager So, Precision diagnostic visual bed overall give sight understanding part is on precise this develop on calls and strategy, important will done then experience a includes having providers. a that is biomarker of wounds. protocols capability, is industry because we've an assay, wound to that hyperspectral wound comprehensive and lot Healing our to treatment that going had in the said the in our not the a terms before, through of us has care able by be is believe many formularies an as advantage

a need the it believe and be something head, we really that we bringing and to treatments will are better part where it's of as is And the integral we provide critical what and code. outcomes. therefore, would be which for way where table. you how be the that us going assay, that are of to code, business to the a somebody either this a to want some should system, to very to we have lower kits includes us, it reimbursed, solution go And be to out And and doing. component very reimbursed think we're many it's critical the times, coverage received value-based we've we ultimately pay to And for then under that. said there for credit So, an understand to in and be for to able obviously, that be meaning imaging side has already have have cost biomarker treat will order that code, got there

Ian Cassel

And is think adoption to on license also to for Precision perhaps Healing, internationally, broader out, Ron, the you time? that has the get that a same product that you potential at

Ron Nixon

it opportunities. think potential has several I

field not it's would if patients up explored we're will that's that into and care in haven't those they've And the that our technology of we outside under applications. that yes, and it used. probably beyond any in of wound of be get any license for field. it. the University to the because could study sort on be or it would Harvard. be extensive probably done some ready field. But of In pursue that, We our would yet the we And at get we partnership Women's But exploring and that skin, utilize out that be it Brigham if Miami of identify at applications and our a something field, would

Ian Cassel

some potential products? XX-K you Could early with those the believe in in explain Biologics. saw I kind I this products began starting year of of ’XX, co-promoting, you Scendia the

Ron Nixon

Yes. you that. let Zach, take I'll

Zach Fleming

I we as had put really were great we their to to order fashion, there's amniotic go it's go were business, there's these been And products, products. And products, And and a biologic surgeon relationship to to Sure. we And us they needs were in complementary and going They we of other these that. long-term There now all I them that's that partner, real offer to done between do as quick this products in a initially, job. and starting able have into that nice then don’t know, And noticed you with saw. had that's understand were to, a a good those Scendia, to I well. boon and and be to well go with think well. Cellerate grow a complement. Orlando. we a being together type for used. handhold a you comments. in might what surgeries able out us. often We needed really distributor think Yes, joint some we additional real venture, that for we were that Ron, felt make some felt the bone had like as they surgery

Ron Nixon

No, job summing that great a I did you up. think

Ian Cassel

Zach, on Okay. working you Maybe Maybe Ron, that excited and on have market, either one which opinions, today you're you take this. or are other but about? that both product question, you different can isn't most

Ron Nixon

For would me, fit it, market. means the portfolio if comprehensive a frankly, it or development, But, the think that it's surgery. about we our to quite something because we for overall probably BIASURGE because excited in fit surgical either in that's nicely strategy, our see

Zach Fleming

in I spaces. carry, of complement Yes. potentially would again, one-of-a-kind very their products, already of changers echo but his BIASURGE we her surgery. I'd complimentary of the hands to certain very surgeon can kind complementing is in unique, outcomes what BIASURGE, Precision They're great also terms And hands the add both The game in or putting Healing. things that

Ian Cassel

I you your largest that a health vision. your Okay. I the the for One in-home provider, that's question. more health this catalyst lied. largest was and if and think business insurer I acquired week saw wondering

some that. on thoughts overall Just

Ron Nixon

home partner and a is company healthcare us. Every every potential for provider

provider home strategy overall of see critical And be all you the that the more home. a part through think their all at our the will hurts it as of think vertical well. the extending way we don't services I and So, integration

Ian Cassel

Thank you.

Operator

instructions]. Nixon Q&A concludes [Operator you. now will session. Ron a Thank ahead. go back for to closing hand That I our Please remarks. conference

Ron Nixon

for hosting you you joining thank participating. having report Matt, our morning. Well, call appreciate We And this greatly results, for all our thank opportunity for to everyone and thank it. the you

Operator

this event. Thank today's concludes you. and Ladies gentlemen,

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

Sanara MedTech (SMTI) 31 Mar 222021 Q4 Earnings call transcript