MLSS - Earnings call transcript Q3 2020 | Milestone Scientific Inc.

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Operator

Greetings, and welcome to Milestone Scientific Third Quarter 2020 Business Update Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] I will now turn the conference over to your host, David Waldman, Investor Relations. Thank you.

begin. may You

David Waldman

thank XXXX and joining Scientific's Milestone Good results you conference quarter financial call. third morning, for

On website. the today, results, and posted call Chief with issued XXXX D'Agostino, us today are financial The Officer. XX, Arjan Dental and the company President on containing Chief Wand quarter Financial Executive press Len also Haverhals, of November of which Milestone release is CEO a Inc.; company's Joseph Tuesday, Officer; Osser, Interim third

call the Communications or like you company's have operational after If the quarter company, remarks, Crescendo questions information results additional contact management prepared third the and ended at would about the provide any any The financial September reviewing for will XX, please now XXX-XXX-XXXX. XXXX.

and like conference a during everyone revenue statements plan, would to uncertainties, and of Milestone's which assumptions make and to impact forward-looking future business success. Before are all decisions, and beyond future of remind call involving business involve timing may many market difficult conditions Milestone's to risks These we this number or competitive and and to respect financial are predict are ability expected impossible economic, of future regarding of started, that we which with and it's judgments get on implement accurately, control. we based statements

date, filings Exchange report achieve without from by the patent growth, standards, Form time-to-time Milestone's pressures, Some with revenue adverse indicated customer periodic and market any factors reasonable are that XXXX. Interim undertakes year forward-looking in go are September ended the obligation and to beliefs on operating and failure Milestone Len. detailed changes Milestone's the to turn the FDA management's developments, expected Milestone's those to could and statements XXXX, our this important based statements publicly from XXXX. limitation CEO. December third no statements With and call for ended The to Commission, factors XX, on revise Securities economic today's we'll quarter Form reason. made the over differ for XX, now of competitive during or or forward-looking cause actual upon XX-Q Osser, XX, ahead, legal changes the including call November materially requirements that, results Len as Please in risk rulings, update XX-K of any forward-looking expenses, report general the in conditions, for

Leonard Osser

us second than to offices our Good am morning. you, world. country quarter for thanks around the reopen the I Thank that to joining across seven-fold XXXX call report versus of as David, and more the increased sales pleased and today. to dental everyone the dental began

pandemic. working initiatives the work their to dentists of patients and have to during and address received, needs been hard Our back we and well marketing promotions both, are the

the drive boost as recovers, pandemic, Although loyalty have we incremental in we turn, high current sales continue the reinforcing impact negative the enhanced marketing to instruments sales of users for should dental the Moreover, witness our of help business dental recurring quite COVID-XX the of activities, has proven market which the positive outlook business. should the illustrating and sales. which long-term disposable margin our and resilient, our

sales of system, CompuFlo a taking around technology. and to With Our the the are sales hospitals we around hold. epidural epidural efforts advancing our the initiatives are vendors, and CathCheck system marketing number outside also reopening CompuFlo

the the hospitals, system for network. CompuFlo within efforts development and the by the X,XXX believe CompuFlo this Most clinical providing providers has growing instrument benefit concentrating healthcare the Premier, significant Similarly, epidural complication total epidural with to and help the pipeline shown to after business of benefits awareness to costs methods. our to epidural close birth. our catheter XX has hospital. to the our awarded been with backed XX a lowering validation perhap of the conventional the CathCheck accelerate group technology a to pain should members, mission of and placement first for outcomes in by other and group economic time [ph] standard-of-care. CathCheck believe reduce is placement to of of purchasing access This while potential suffer expanding The significantly difference a are healthcare to approximately enhanced become institutions. has organization following extensive importance system confirming significantly U.S. Premier's monitoring costs This in using agreement will an make improving published and epidural us their rates. direct that clinical and the stay, a are we hospitals we minutes two catheter data demonstrating punctures transform we and Moreover, leading were versus reductions safety our We Specifically, CompuFlo instruments provides further significant recently, agreement health our a to institutions. and a minutes, to procedure U.S. XXX,XXX within course, for patient agreement purchasing

hospitals as trials departments approach our well hospitals together. of in partnering with schools, purchasing expanding major and the are medical to as We anesthesiologists,

School interview decrease "It length Dr. very epidural stated, system, satisfaction." are improve and block. a and the advances discussions and anesthesiologists and benefits at Dr. does procedure to is Ayman of Yale Anesthesiology in number committee Arjan. syringe Gynecological Chief replacing validation forth becoming recently, on support the further of that including CompuFlo a Alian patient further the discussed the Division of of goal help of anesthesiologist late came the to our Dr. catheter new CompuFlo the during turn our we make published stage stay an you activities we'll marketing does Most levels It other procedure with believe as the our verification It Moreover, It and the received feedback & We of updates we the hospitals, Arjan epidural CathCheck a the with Medicine, We the a encouraged and from I from and confirmation the of Alian, of technology of website are quote, Wand over and in Alian in we Chief and technology who towards I'd hypodermic describe placement standard-of-care, Dental sales the CathCheck, of does the to XXXX around decrease detail. unfold. more U.S. at Officer Please go Obstetric improve video with epidural placement. point, does complications. call instrument as Wand ahead, and they Executive the like At provide of soon in Haverhals, XXXXs. decision. this

Arjan Haverhals

Thank you, Leonard.

across recover world. the offices has and reopened business around as dental the to country dental Wand mentioned, Leonard As begun

While in our we trending the An I'm in business sales back the pleased of revenue driver to are sales levels, recurrent not our direction. is model important our pre-pandemic disposables. to right report are

unit However, our to we drive to aggressively further installed base. growth expand are working

launched them promising work of fronts. feedback well period. this and dentists, disposables we both, to on For the in our practice on a and the of distributors Wand back have growth our as and and instrument series initial international has promotions domestic been The reason, during difficult as business support both to incentivize this

staff important as we patients As sterile in a important the signed a of establishing is Wand to recently agreement offers we an efforts. note single-use an to as It benefit safe I'm example, environment result and that in disposables. instrument Russia for significant use report of our pleased terms new

the addition, can after dental In as making procedure using when as the little Wand, XX in a start injection. seconds

significantly waiting unlike while another conventional to the on reinforced for For and gear set Accordingly, risk not less move which this to based does operatory room reason, cross-contamination, we dentist change received dentists. procedures, we in. has the protective there feedback to of the is from need from believe one been anesthesia

drivers our importantly, Wand instrument, supporting dental efforts including significant the growth value practices. marketing focused of the and safety, Our on enhanced of around the efficiency,

first more cycle. new are reopening value the process, CathCheck The partnering us commitment hospitals anesthesiologists I'm the Chinese performing not As during said, hospitals analysis sold of to make report encouraging expect we over This CompuFlo together. this business to outside efforts the decided continues, business To the of the instrument right hospitals distributor. in only instrument sign-up we With believe We to system that and to the dental major sales are purchase the lending and in time, trials the of by with our shorten disposables; sales does of direction. for readily for positive approach include and minimum order thus number the same available for hospitals in to the hospitals sales dental because thereby to technology. the trend sales recognize for are by weeks. At QX. we sales to departments once is we streamline program. the be in to to advancing these increasing $XXX,XXX the has around can limited procedures epidural $X.X the purchasing CompuFlo vendors, million we exchange in minimum This to sales pandemic, far pleased and this hospitals in a the China approval offering a our we team the support to been through current strategy response allows are the trending coming the hospital

the CFO, the Our to look to we in details financial I'd to to this future. At detail. Joseph in agreements sales go forward pipeline the hospitals several with and turn near premier ever, over than is point, D'Agostino over more robust finalizing our like call

Joseph D'Agostino

quarter approximately $XXX,XXX net XXXX for Thank XXXX cost partners. $X.XX of on impact revenue prior of and nominal, loss then months three revenue, to three strategy approximately is $X.X million ended XXXX. approximately versus the was the the drive ended million awareness, versus instruments for company's instrument. months XXXX. are in $X.X XX, KOLs or or months to the Gross you, loss dental COVID-XX the XX% XX, per million Arjan. the XXXX; for was Medical or a our profit September the per three $XXX,XXX or XX% the third for revenues with September of increase three in for revenue the approximately XX, at versus customers, share, million the $X.X $X.X place for for $X adoption in XX, September the XX, and third months third pandemic quarter decreased by decrease the no business of million million suppliers, was the ended September quarter period. XX, revenues. approximately $X.X September XXXX XXXX September XXXX ended Operating of Net ended quarter reflecting the for vendors $X.X approximately was to of million September and share ended result Revenue $X.XX loss of the the other XXXX of versus due Dental loss

equivalents cash of to like XX, million of cash September I'd your equivalents liquidity XXXX to million compared At December turn to the $XX.X resources. cash $X.X and XXXX. Now, approximately capital as had company and of attention XX, and cash

million, to Gross nine decreased months XX, profit of for hand million, which $X.X versus sales internationally million. XX% XXXX. current $XX.X was versus approximately capital $X.X the or Dental of XX% XXXX country the and for the ended was million throughout and related $X.X the September $X.X the ended revenues the As pieces $X.X nine September months of months XXXX decrease XX, pandemic. XX, due devices approximately of to total XXXX million to and versus million nine XXXX in or for revenue for in dental Net XXXX. due is result COVID-XX Leonard? of versus $X.X were was $XX.X was At of million Revenue net working of months September nine of loss $X.X nine share, the like I'd assets months the nine for point, million a XXXX; the per is approximately for for $X.X Operating or $X.XX comparable for million of share million this Osser. revenues. to loss of back the months was in million increase over call XXXX. of XXXX the revenue the approximately turn the loss to $X.XX in the $X.X loss period or months this decrease per nine Leonard by

Leonard Osser

starting is Thank as remain the outlook business the encouraged by the We bounce dental back. you, to business Joseph. for

In remain are we and CompuFlo of will position, potential Overall, had dental in $XX the financial have business XX% epidural, in we In CathCheck, become steady transform the meantime, which that as standards given the the the held and the ultimately believe confident of the the XX, to industry million cash-on-hand fact margins the strong a in gross addition, of XXXX. market we we range. high from in September over care.

more appropriate return to to and have as continue monitor normal We ensure carefully to begin available to expenses, we dental offices inventory maintained levels. stock levels

substantial margin, present contribute quarter. Given the sales burn same dental in the our the the has in for increase which present remained approximately --

would developments thank for forward committed joining I'd to shareholder value, driving today. to to we the updates At as open look and like unfold. call providing questions. further for call this like are to We you point, the

Operator

[Operator is Vendetti Anthony question you. first Group. Our with Please Thank proceed. from Instructions] Maxim

Anthony Vendetti

Thank you. Good morning.

Leonard Osser

morning, Good well. Anthony. Hope you're

Anthony Vendetti

I am, thanks.

as bit in little I everyone well. for wanted about agreement was that that Russia. you the talk just agreement there is hopefully So, was a it to -- announced

bit go Just a if implications their has open doors you slow COVID-XX a the being the if bit talk are? to that of this premiere; or talk or magnitude making about how And started about little point? little can then either on and that a preferred list, at what is

Leonard Osser

details, Without our Anthony. is question, business in the XX% the previous too In to year-over-year and to that's agreement; Thank signed Russia, starts significant the compared the into a regards order to forward. XX% moving of growth distributor. for with renewed you we encouraging there much have a definitely as agreement X-year going it of the

and The question were second your or the Premier; point already demos being we definitely the trials. in with course, awarded to lowering targeting these and active that of of that number hospitals and and Premier of we we been to Prior very in rewarded is and threshold have hospitals, are agreement. we're signing belong of the demos that entering delighted to agreement, helped the definitely the relation has agreement trials, performing Group, also us --

to about the Group. of hospitals positive the Premier one So, the commercial we belonging of sale remain first

Anthony Vendetti

increase in have then, -- of meetings has figured slowed? things you obviously And country dental to a terms has sequentially; in well on great. so on you going say have up. seven-fold COVID-XX, your conduct environment? a that what's able be consummate you Milestone and Okay, to as just still in back way had sales out still the now, this sales know, picked Would in as Or right customers -- based

Leonard Osser

dental Yes. in At where are maintain now. in the increase position will in -- we this quarter division we're the right sales, dental the a moment, Anthony, the that in we in in margin

that mentioned China, increase to that obviously, XX% earlier, started -- pay to as they're I cannot will sales sales for distributor. mentioned have we have again, Arjan because obligated we is we we -- though our sell We we it, book until we to earlier, -- to and can't -- approximately there as distributor, it own

in enhanced the that until that next have they aside, But will that shareholders making, are number So to We the are How have quarter. safe, that patients product. quarter, the let quarter, our given sell-through. in continue the and today we know is significantly remaining that themselves, quarter year? idea. dentists safe than they around We cannot that use no believe here world, their both first third we the significantly keeping book efforts putting the where opportunity has the this that is fourth given our us better

maintain significantly the crystal forward, level seem third. quarter, the significantly going fourth is -- second it a would of having which that without better the we and the would than So which ball

know However, don't because but the there we is a the pandemic, anesthesia using do better no tell we offer way what the of competitor. happen XXXX will way than doing dentist to we with

Anthony Vendetti

Understood.

Leonard Osser

and at now capital. that why capital, with risk also balance why we the to months, and regardless that's we capital need least forward what we no we that's the why longer believe, that going have XX COVID-XX; helps And sheet a Yes. that's any raise mitigate we of raised raised obviously, the next us happens for

development. obviously, don't would over hope of move the XX months, money months, the the raised to the virus have are were -- enough we have that But also We even that -- products we -- whatever next system or also other XX that we we in think does hope enough with ahead stages various which happen. in or withstand the to with

four or on-hand, we had can have money marketing increase do to the give money dental and significantly, that to the marketing the the the the do CompuFlo business so; haven't the sales which other also both but last us us So us years sales, we United and and and for and also allow out need we United the both for States CathCheck. in technology, allow to necessary of the both, the and bring States forth that

Anthony Vendetti

Okay, in face of that's even arguably helpful. correct? of And you've position where with balance been it and pandemic, sounds the products in the with like, terms best your you it's are the in sheet;

Leonard Osser

absolutely. Yes,

us, we're with that position have of team leaders patent that I the opinion the years that world with throughout think in the presently enormity that many technology. in, key the the working on the and been we success had best we've portfolio, present the given we've in

So that in yes, we're best I many think been in years. we've the position

Anthony Vendetti

and hop then lastly, in the then I'll And queue. back just

hospitals that given -- to is early have have CompuFlo additional or been purchases? the it's how performing commitments has the and On it make made well been based what yet system, on they have too the reception

Arjan Haverhals

Yes, is shortening the team, the it which cycle helped or we have the sales definitely because longer team has to equipment assessment, analysis potential hospitals value that a -- process. analysis value capital for normally the the process sales for through especially go of the

is is value to for So process disposables. go the going that then a easier, the products and analysis we part through eliminate which shorter to the team it be new

the that's So been speak; and said of also demos no a have the that proposition, definitely giving by anymore. the of longer with let's the is trials and way of we equipment in has benefit. feedback in of trials cost on feedback trials on number capital received because the demonstrations. CathCheck immediately And hurdle based is as particular, -- right catheter as demos the doing the Also, the the very of initial clinicians we confirmation we we promising of the a is the the the -- the based increased very using and we and the the and once say also, doing selling well the CathCheck, also positioning unique are are perceived ease existing

is to is and my that, are our speak, and activity are comment for your coming question also the conducting So next daily and in as weeks. we that people trials demonstrations, field all sales the individual a

Leonard Osser

they Anthony, said, and certainly and as the anesthesiologist time blatantly has of value has it pain last to the perform XX product the Arjan obvious is As The continuing recognize of way the to avoid over patient, year. less. because CathCheck old value, can it's the the be of much can how minutes they to the minutes or the save analyzing XX two reduced recognized

pandemic committees pre-determined that commit capital one around has budget the loaner a the gate over a -- moment. they anesthesiologist, studies recognize quickly, it's we're that So unit the institution such Arjan once by they published the disposables removing a period. issue, equipment that and the as clinical now getting journals as broad it; is world, the are the are convinced for of And major assures is the this what's that them in they gate far array with try fact the and the the to throughout we amount hospitals the it, of the to the not That's issue the have at but should XX-month they at as very at [ph] delayed when themselves. a explained, they the then moment try sales in way in

had issue no COVID-XX. unfortunate the that situation all on based is with it's we've anesthesiologists, there So with the

Anthony Vendetti

hop queue. back it. Understood, the thanks. Appreciate I'll in

Leonard Osser

Welcome.

Operator

proceed. Capital James next with is [Operator question Please from Instructions] Northland Our Markets. Terwilliger

James Terwilliger

hear Hey, can you me?

Leonard Osser

James, Yes, are How you? can. I

James Terwilliger

nice asking. well. Very quarter. for Thanks I'm quickly,

of you housekeeping; the $X.X for Is did for Just that fourth in say for correct? quarter some revenue? XXXX, million remarks prepared the

Leonard Osser

Yes.

through believe the of this next through extraordinarily being so project forward-looking this long their million, Yes, sales were though earlier, to with COVID-XX Arjan year it very virus, strongly, minimum moved explained where trajectory be they own will is million Arjan at excluding the into having first, pretty of buying second the Our their it, obviously, up China. decided some China's Arjan GDP. we past their had end fortunately, having to very, they they around obviously, they China; are time, period a period at sales of able we give and now will are internal China they course, $X.X are we virus. a and quarter moment, have back never has but gave we is fourth information $XXX,XXX inventory; come quarter. and that for so not as minimum through be we also, fold back where China for information; yes, can't the the with for in any will much they given as the China's we quarter been sell-through. the at But projections book we've the not but in did projection in good as that sales. very China, we're until of this the not economically conservative. We year, projecting in $X.X know, you is have But -- the last third believe a But coming the in is the

James Terwilliger

I actual expand too get in it's very what than there get COVID terms I I next Thank in should bottom think as QX think know than SG&A how but don't a lower number, expenses forward? don't as job $X.X from I of nice that in my and think controlling how at higher question bit far you for. you you. the and of to want that guidance, nice forward maintain either; expenses; here? I to of on you sequentially, SG&A My then dollars? a SG&A a much level -- know but revenue. did you've a estimates. got there you you're It's looking That's expenses million I should allows was of want little Can nice I COVID bounce and is going How expenses to going into to should

Leonard Osser

business, in run things where round are quarter. to third certain quarter different burn $XXX,XXX. approximately time-wise Well, very when now third about use the was the have, our the always of burn numbers, It's $XXX,XXX it's the we in with rate

-- Given the that we obviously, increased same. anticipate be the to to about sales in number the fourth quarter,

Now projects go yet medicine. of should not for instruments year, will time various the CathCheck, -- next as same epidural, at other that remain we But because finished are project the sales the expect and the on areas we be projects same we forward working relatively well. our development products, the of as and in burn dental the both, increase medical other product

So Joseph successful. CFO squeeze look we years if we'll at be nickel of many buffalo my think suggested which that, basically out; and until many the our father ago, fact I that is what that the does years, D'Agostino, to yells the

James Terwilliger

I'll then with then -- jump in more, And that queue. back lastly, two

again, remind then balance I you And again, tighten what the sheet, like? that sales platform jump other of of that are with some you quarter. So else queue nice marketing in belt very you attractive -- a me, clinical here; have U.S. that. you your technology Thanks, and and I'll kind So looking do looks indications? R&D know platform at in has and back after what because

Leonard Osser

James. much, very you Thank

in medical I sales vacancy the activities epidural Okay, have territory the one the sales in field, marketplace. that one the organization; being, when and have we we three we people for time at are segment in in the marketing and look serving, the dedicated or

believe of let's commercial we prior the in what to success that want and expand we we to to doing, also have So, the further of all the results the in first that have sales invest are sales -- to say, expansion the course, money to that organization. first we we get will prior want organization;

marketing we performed, continue on that of are understanding dental side, also the to. optimal on target on medical field, presence, So with have question to the Based sales that's and the an continue side more terms, the to both communicating web communicating build group we activities. we the sales marketing and the to of your our target research have and groups the in of

the answer be marketing about your question that think I itself. would to my

forward. have we are, earlier pipeline; use development and we in other -- and and bundle course, are accelerate in research or really, on forces it's using where on for the technology we as looking Priorities other into cosmetic on current epidural really our or portfolio and not area definitely looking identified year our of for a technology injection further of said the or at back right least prior dental efforts future based if the our well, into us, into the activities moving business, undertake can growing -- areas. the as then further I minimum, bringing that a indications use and the but technologies [ph] pandemic, the Now, project last years, previous We to the is, finalized put to that we terminology line business an do levels and the we as that's will injections, to our into applications. the Botox have details

James Terwilliger

Thanks. underneath Thank And thanks COVID taking questions. with your my operations you. for the quarter, job Good Nice guys. cloud.

Leonard Osser

very Thank you much.

Operator

Okay, questions management turn Instructions] be the like to conference I [Operator more closing to remarks. there to would at any appear this don't over time. back for

Leonard Osser

hospitals for everyone is working we're to our the certainly for first hospital eager you soon day support. close All to you that like your I joining as every will much today. we And that the very tenaciously and know make States; to us very for in assure you safe. as I call let I'd best, the thank certainly stay much do, know. Thank you happen. United we

Operator

does conference. Thank conclude This today's you.

And this your for thank may time. participation. your at You lines you disconnect

Milestone Scientific (MLSS) 17 Nov 202020 Q3 Earnings call transcript