MLSS - Earnings call transcript Q1 2021 | Milestone Scientific Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Milestone Scientific First Quarter Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]. Please note this conference is being recorded. I would now like to turn the conference over to your host, David Waldman. you. Thank

begin. may You

David Waldman

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

is Scientific Haverhals, On are the Harcum, XXXX today, Company's of Controller. Arjan press issued and first quarter Monday, Len today the of which Milestone President website. release Osser, Interim The financial Dental call Chief also Executive Keisha with Inc; on and CEO us May posted a containing Wand company Officer; results, XX,

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

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

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

Len Osser

everyone David, and joining us for today. Thank thanks you, to

The the first quarter highly and subsequent company. for period have productive been

that period increased versus our First, for year. revenue the XX% for million the to of first last pleased I to report XXXX million quarter am more same than $X.X $X.X

versus the XX% We increase also XXXX. sequential retreat strong the in achieve of fourth quarter of sales

continued rental Importantly, standalone with our cash a growth remains business basis on positive on opportunities. back segment Clearly, our track. is flow dental

In systems, new already purchased have terms increased have business of the our of CompuFlo our added we with hospitals Epidural prospects disposables and months. in the coming CathCheck that

expect are others that to of trials convert latest stage existing more have We we starting commercial many development and that that are to orders. trials at

as published our economic element well of associated new following data, epidural we accelerating and University global the the and University the During new validation versus the in our as reduce A both leading are to by one CompuFlo a in epidural an of Medical benefits recognized the in the with standard backed focuses a Epidural States University which United we has Regional will commercialization across costs minutes efforts method. currently to our regional a contribute CathCheck recurring confidence branch and direct that of the Medical Europe. four clinical the reductions believe and for the and to care agency complication of medical the These using we of anesthesiologists. Texas two disposables include German disposable the systems other in standard healthcare the placement premier Medical confirming systems presence quarter Center, domestic potential Epidural United the margins of University key system technology centers in delivery. three professionals. 'XX, selling Europe to Texas, part our and healthcare also we markets CathCheck the and at pursue South of to on an safety of and the and within safety in Carolina, South epidural of The began time goals to received significant of instrument XX to contributes savings to an the rates Texas is delivery. value in clinical first become our hospitals strategy on medical and not provides centers become reinforces Moreover, of to in and In State System, hospital, Galveston, and Carolina, for as and transform extensive purchase States CompuFlo level of institutions. system, Epidural the the summary, institution a CathCheck of catheter of technology monitoring in high sales of The and demonstrating labor one a labor the XX and to aggressively outlook nationally placement a efficiency revenue. procedures orders of the It CompuFlo, both morbidity, by are proposition to procedures components available Wurzburg. strive Hospital the procedure these our of has care as medical providing CompuFlo we benefit catheter potential and healthcare of significantly the the from CathCheck premier the procedures, Similarly, minutes

Scientific orders. to convert In turn this more Please our the and mentioned Arjan. in trials believe as the At of describe commercial Wand with Dental addition call Haverhals, Executive to of Officer I'd instrument we expanding to several and to ahead, president the advanced around activities like and underway Inc. go marketing over hiring Chief are funnel, that I earlier, to sales sales more Milestone salespeople Arjan point, already Wand hospitals will detail.

Arjan Haverhals

Thank you, Len.

dental recovering and of Our strong marketing flow continues sales a world. dental to offices around as and cash nicely result as across well country initiatives, business successful the generate as and is reopening the

in have three a of illustrates robust dental for market We strategy, to strategy the sales growing instruments. global distribution expand progress our our begun territories Through States and and Canada. covering network rapid market. our We implementing demand our building positive our believe response year goal dental the decentralized accomplished we United worldwide important

tragic efforts Vice our regards supporting while continue express developed In like distributors. sales platform present President Gilbert. accelerating of believe instruments our hand pieces are Eric of new of and these effective coming into difficult help drive We a condolences We cost the to family business, markets our global in to the to our and dental in scalable now highly support to by Sales, and I our to our saddened have loss we we we his times. were medical would family his years.

Eric forward. experience us temporary managers with skills now for of territory new passing that necessary sudden and the moving are the the sales we sales setback, help Although caused will adding propel

to to our assisting state. penetrate territory a sales territory manager have major appointed us hospitals the team covering We also and Northeast in Central, in managers Southeast California We've this nine increased area.

truly come. Milestone he helped additional behalf a marketing own our of in of market has for difficult everything our steward foundation when force both building and on managing increase company, execution to done been and in years. strategy through our and shareholder for to the activities. the take ahead, Web expenses go result Keisha. a interests. call Board the and the to I'd like to Harcum Len We to our myself, activities the years needed, over awareness the should capital team these continued and for company sales contribution carefully appreciate to over has serving the launched navigate We I'd recently look presence. social Please after and and truly for contributions increasing to his of Investing turn ongoing are the go visionary At moment site He to to communication Keisha personally like We has of environments. Controller, He point, and thank focused looking our Furthermore, brand lead team. new a its a his company Directors growth detail. inception. in digital also our as our this the success since protecting media guiding company. strong in we for good success over Milestone All on generation forward financials the the Osser his measurable

Keisha Harcum

due of was was China. compared Operating from XXXX increased for million. versus period XXXX. to the The for months three losses three XXXX million $X.X per XXXX. $X.X three the months million the as for of decrease period approximately margin Dental XXXX. XX, months Thank the March or profit ended million you, March for months losses Arjan. three $XX,XXX revenue ended March March versus the million ended Gross year. XX, million loss months three comparable XX, for XX, Total the per March versus revenue XX, months approximately gross XX% March sales million ended ended or was approximately $X XX, to $XX,XXX approximately share lower months XX% for to or net ended $X.X months revenue $X.X XXXX XXXX margins is XX, million by in $X.X last ended three was of $X.XX share increased revenues ended Net March XXXX Medical $X three XX, in in $X the the million versus approximately three profit or [$X.XX] the $X.X XXXX. for the in same March

working to I turn resources. point, over At like $XX.X call of capital XXXX. million XXXX, working attention March had your turn million XX, back of versus company and and the to equivalents to on $XX approximately cash the approximately this I'll Now of liquidity the capital $XX.X December million XX, At and Len. would capital cash

Len Osser

for comments earlier. Kisha, and thank Thank Arjan, you, you, kind the

cash sheet substantial around million and provides marketing was and sales of cash resources to and balance our accelerate and XXst, medical dental our as activities equivalents of both strong the us 'XX, instruments. approximately Our March $XX ability

the over $XX exercise We and we nearly options. very of to no have are $XXX,XXX million million and cash, Included need of of exercise generated warrants capital. in plans from from $X raise funded the no additional and the well

robust and Botox couple. peripheral markets, as company. believe and available nerve Our our further strong advance us we to our commercialization Pressure Dynamic also allows indications for technology, which development growth represents of other Sensing sheet We DPS, the large in platform such to for balance for technology underserved opportunities just proprietary multiple with opportunities quite blocks, the a this potential is believe name and

are around Scott Additionally, we week, to and Khan, CEO instrumental our new of in last company as Arjan been we successful commercialization and CompuFlo CFO. last the and sales announced marketing the that activities hired Arjan promoting implementing has accelerating CathCheck. June, and the joining instrument dental Haverhals Since

he Arjan's epidural procedures delivery during technology bold towards going sales invaluable steps our our medical our of earlier, the as work will as As taking standard labor we to of and leadership around establishing be described world. further accelerate we're in forward. strong goal care

organization, record research and addition our commercially many a dental than such across initiatives impressive including broad medical made having company. to Milestone development management track transition he's medical. an growth organization and XX believe support to will to experience strategic he senior and rapid years a In of device already brings focused range a the We more contributions industries, a leading leader from of the

us investor XX a to be with also than only overseeing of not Khan infrastructure, execute We awareness we Scott in are as management more finance welcome proven leadership the increase our years also corporate Scott but milestones. helping will Scott and to financial team. key track excited operations. on record instrumental brings to

especially I Chairman, going within In terms China Vice long-standing as some deep and company active as where of expansion role forward international very I own of to an of relationships. have well my our forward in look success the involvement, opportunities, spearheading as growth playing the

our truly standard up, care a establishing thank our like driving be value for to delivery. forward providing call call as We to to as like company. and XXXX move shareholder this I believe remain of to would the the to unfold. medical turning epidural to committed updates joining and At and the to further and instruments Operator? developments for open goal procedures wrap for as business and disposables year new medical labor look questions. an point, So I'd transformative for you of will our we important our point we today

Operator

first Vendetti Our Maxim question Anthony Group. Instructions] [Operator comes from with

Anthony Vendetti

an they contributions. ask reps added questions talk success on on can just I added? training and a period Can adding promotion and, them congrats, sales side. some longer year about speed when three and before to ground that be the hit how the were all just Obviously, your you right and sales can continued months up Len, is wanted curious, I medical thanks by Because for away. have up a they ramping people. contribute this important the So Arjan, some probably before could to it there's you’re we they to or get cycle, is running? was many

Arjan Haverhals

of team the a this a on sales of the quarter, started with year the situation the to we of handle. recruitment had the four. course, then that had four first And managers we organization. the sales then, that about or Eric, already the passing end we news earlier we So By during quarter. of tragic And first territory was expanded

of today, as organization sales started March, of end have director, sales managers. now beginning of April. primarily So of we they individuals, all a And eight territory nine one

during trained we threr reps right starting and new second onboarding the of speak, have April we course is the the As now. of already

is a soon is question, a the up three Now goal as time, and the the in to a of Because surgery is, for that including of weeks people months? your funnel. because the to possible. No, the product in the whole worked to to including experienced pain me, well onboarding recruited three it going have anesthesiology as objective onboarding, speed actually more that people the sales lead And building territory one department. knowledges as get that was are take the we importantly, management, director including There's either technicalities, department. have they of the manager

that successful to are and question? working we skill be required set also of have answer the the in at. focused field So that industry the is Does we that expertise your

Anthony Vendetti

already like sounds hired be can training compress it ready that you've they and three and to trained people you've the to and weeks go the industry, sell. in been out experience because some able So the feel period, you within have

by they're to can about, in you about they percentage access? terms over direct to easier difficult your sales talk GPOs? ability of hospitals the during heard weeks access relationship still to them, person So nine talk sales several Can talk have with that's market, has that access. but And to your and in force, there's is Can are most helpful. We've your up trying that access than target you about the to your that with you the were the going of how been that that you're hospitals a the last reps? eight opened helped pandemic, still play

Arjan Haverhals

I couple So a here. questions think raised you of

foot and is because but that That said contract of couple November the it awarded course, you still lowers Group, to Premier the sales And the with to to of So the year active these answer also it barrier anyhow. that Group. being But belong have GPO let of that last helped follow a endorsement, the focus, the us we are got from and have we threshold the order. in. we within in the in undergo that Premier try getting and a belong door me like a hospitals the Premier them hospitals to the continue hospitals purchased product process them by of target to us in chronological endorsement hospital. I to an has lowers the

So that's aspect, absolutely. one

that situation with to you larger the them place more return, that's to pandemic, that than and the the back have okay, can a wait year a are of there in been number we been Secondly, that have contact now we a actually the ago, also was, we as said until control, speak. prior that the hospitals on year you we contact and is with taking have in in accounts process are

mix a have going possible again. that come and year we been showed to revisit since are third have it that back interest, made larger salespeople ago, regional, that And accounts and smaller So month, through tier, us with come more of a come hospitals a to then through than marketing accounts that through course, that of, for potentially to our not our the is that them and activities would network initial say, since a also that come bring accounts these I them.

mentioned is allows also remain speak, as we well activity from we that the why accounts actually are on. reason the all we level also place that to say there And and positive is we have work that turning as have high also, a here having. perspective that on that remain taking execute we that me and we that's all So that and to And times, demo point, trial to a going these that as positive. several hard plans

Anthony Vendetti

leads How Just based pipeline, on what would Would hospitals. year opening Is was of last have pipeline X.Xx? year, in we based the looking of said, that sales year? difficult customers to quantify it a compared XX the like you was how versus terms it should potential customer look you plus on months say pipeline is you you today potential the pipeline But to the opportunities? access the ago? at at hospitals that, Xx? up? Xx last

Arjan Haverhals

but X.X, this are situation definitely So X. in well it a question nationally, or contact from period whether point in is comment come the that we the and view number and to better a we front I to be have from of a regards my would pipeline months short have in as not X established of to in would relation time, My rather that where well. will or number we key in with ago in say, a universities refrain able, XX I of as Europe an mentioning factor, the of answer national been only a international hospitals. than

So the situation situation XX to months a is definitely ago. better than compared

Anthony Vendetti

And the China. last gross bit question little on a put is margin. pressure That on

of in somewhat quarter, contributor much all, on I quarter. you margins second the This a they in come in Are going be to sense those quarter, consistent more particular back volatile China the don't certain to quarters expecting move basis? a sometimes quarter-to-quarter they're gross know can come in at sales is that a in be they or up lower. in,

Len Osser

they XX days. opened has hoping be last significantly over We're will as the China that

even far it So on bring the double money the containers, margins in are we to though it China. does on down and do send less brings money. margin, on We which

hoping will it certainly have quarter-by-quarter. important come delivery. it is that they've and shipments container quarter-by-quarter guarantee because cannot of we're that that So reopened, we'll we But in

are minimum to to year. a four China We of looking containers this

I entity deal as because of four However, form we'll payment may they because a the shipments see that, believe interest are come in not not way for and a the say, see I year. minimum it but the quarter-by-quarter and you -- it variable and of of the we with may

Operator

comes next James Our question Instructions] from [Operator [Vistas].

Unidentified Analyst

the on you've and profit, kind gross XX% was guess back from that piggy To this disturbing I kind that. XX%, answered of to of decreased that

and medical purchase been of the their thought utilize some or a portion for salespeople a working have to get second to either extend The any in the improve sales of to there I sales is, force worldwide? with Milestone abilities the large in question pharmaceutical order to need was given sales. organization pharmaceutical Has there

Arjan Haverhals

a -- companies remind it, Yes, States have the worked United would the with it given sales worked to we hospitals. call, with gave that people. us had has And engages also thought. in our historically we that I also But other to direct in the distributor of also, hybrid we terms been what access lead model a own we ourselves

being, have made create and have that platform we that to seen. attempt companies, perspective and see to now pharmaceutical time baseline organizations to device look can We to a we other further make point a from the believe of company have we from that having agreement or be But have benefit, our into then it basis, larger even there's formal it global build at sales not we a a strongly any first at continue including time we from in reach considered can is that distribution and to act it that revenues. whether from concept, instruments their place view, a And from. reach on and a with mentioned. to activities. out entities baseline out, perhaps out we medical our a But where with hospitals for first we reasonable that that requests get like because larger as time, discussions over expand stage market deserve company then time any do to or no later the create the And we pharmaceutical until the also in

Len Osser

blended as to plays that the or been add world. our of than have with to certainly China. you kept the to rest it in rest has that, margins. larger see of margins a as held we will margins smaller increased has Just But and integrities effect much other either But world pretty China of role,

Operator

Our from Gary next question Carroll. comes

Unidentified Analyst

network glad I'm expanding moving consideration into hear a distribution forward perhaps. further to into your

at Do direct people? in you eight to have further interim, this So reps for guys think director. a the plus we're employing direct year add you in of what now more plans some sales think have US? I sales target the do any

Arjan Haverhals

Yes, we more plans. have

XX we of you or not to people. number, or If sales a ask XX going team XX, a are expand into

that that's to three are add we on territory but where territory that in additional will right level, think I positions, and foresee to the moving also I particular, currently we forward. at plan the will two dependent

ramp up a XX baseline XX phase, mentioned plus So up type sales call. the I the origin plus XX, to with that in it that plus two to to one, the probably establish will eight earlier in end first we one,

Unidentified Analyst

issues far supply? connection the you're any Len, Do as China. instruments have as getting And all regarding with we our with at a ships

Unidentified Analyst

with as Do China. at chips And instruments as all the our getting have far any issues regarding we Len, us… connection you’re with

Len Osser

have, inventory will the add confident would very two taken to but for chips for company the so has an feel a We years with be issue to the next not us. move perhaps we Yes. that, that

Unidentified Analyst

I being Because quickly, fairly that purchased. the going going are as the close whether be consignment on door know out instruments we accounts, to or

of I that to enough So six into number we say, need forward, fair we going instruments go hospital, or accounts know if a open instruments. a let's need eight

So know an have that that's good to adequate we supply.

Len Osser

have develop taken other we've amount -- extraordinarily We good of to if any would into that news. presence just care and problem the does develop be had it take the that that that would we a ordered, problem with

Unidentified Analyst

All announcements and good Good together. plan And right. and Well, hear forward continued it's accounts. some we to thanks some and coming guys luck new look success. growth like more the on sounds to the

Operator

[Operator next John question comes Instructions] Our from Cord.

Unidentified Analyst

and for new I both going Congratulations of all the have the in on best a are you. question forward. position,

a ended possibilities Let dental I many And shareholder as me times I've years. first thank you for as their culture, Len talked extreme you get how do China, you of a if beginning? a been in to Or with you how you to When for Do look talked and over you today, first. start in you, open But as the was their procedures. to prospects you their dental as the really Milestones at of China considered the a have back, because of do China? recall, reticence in go dental possibilities years. number your China? And over Len, dentist and still arena change, many it of about while the changes time, efforts feel as things view the in fear setbacks. confident to there's

Len Osser

are very I strong. think they

grown is group what investment think share XX the ago to at available. a market occurred about up move with investment, actually XX% in extraordinarily towards practices high XX zero, China. a equipment It's with and years best I huge XX opening operatories, point offices to an has that from, this

to quite in a number has Our instruments operatory. of partner these, there each are those and sold

forward we importance And viewed last class, the the great middle the few the look of the middle in back So and comes care would as recognized. China that as months, over of certainly be sales. upper the dental to amount economy is increased strength change with people given in

optimistic dentistry. very and I'm regarding So China

Unidentified Analyst

Arjan, strategy smaller one you Shine then in The local I have more were from a big whatever, Milestone distributor, or the you distributorships signed question of how distributorships America? do signing Milestone How of how you of on are there with there also to out number these a looking many mentioned of distributors maybe distributors? with Milestone. have them as from with relationship few My smaller and is, a dental. change or to many possibly you forward North are with in question on dentists many for a the

Arjan Haverhals

have we prior and the that currently, we seven have Henry where Canada. have, on this added since the we beginning year distributors dependency Schein, of So the full to in United States one in

United that, continue call number States distributors to and two But we to to to total portfolio distribution of Canada channels. of So it, eight. the in that in the brings distributors add

a in the We that's the terms and sales that instruments increase footprint additional said business have as are acquisitions of new possible new distributors main to our because forward. all in number the have marketplace customer one for moving make to calls of other continue placed of currently in growth our and number the to in it couple on we drivers of we of we discussions as them as additionally with well, the expand or further activities

at quality going of or the not if it's looking going more XX XX, that's target distributor. the be to if a I'm be -- to XX, I have Now do

sales blade their with familiarity it and own medium the marketing In high terms on a activity. of the with ground, having having having model, razor to tech sales own business of feet capital team, their equipment, call having the the experience the have razor

So the the set that of criteria there final of apply are selection to distributors. different

is that is might because wherever course, one. a moving number the distributors to It is we what’s important year not feel a important that the forward. for have us, it for continuous selection as distributor growing adding possible process. But we of So just a need of earlier in business

Operator

this at time. back closing to I'll questions further no are Osser turn remarks. Leonard for There it now

Len Osser

I'd over company, very staff all charge the like the Stay of we for best. thank the given that will rapidly. the Arjan, company they've safe. in our with the all and feel the years. support to new I that investors move forward And confident

Operator

All This great concludes may day. disconnect. parties conference. you. a Have Thank today's

Milestone Scientific (MLSS) 17 May 212021 Q1 Earnings call transcript