MLSS - Earnings call transcript Q4 2021 | Milestone Scientific Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Milestone Scientific Fiscal 2021 Year End Business Update Call. At this time, all participants have been placed in 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, Natalya Rudman of Milestone Scientific. Ma'am, the floor is yours.

Natalya Rudman

Thank you, Matt. you Conference Milestone Call. thank End XXXX and Results Financial morning for Scientific's joining Year Good

of Company On website. Arjan Friday, which Officer; Controller is Haverhals, call April Chief Scientific. the with year-end on Executive and us X, completing also Keisha financial release posted a press issued today XXXX are Milestone today, The results, Harcum, Company's the

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

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

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

Arjan Haverhals

navigating and despite everyone Thank remain to which guidance you, joining surpassing on our achieved to indicates We Natalya, and million, growth today. XX% of are thanks in of us impacts year-over-year and We pandemic for the COVID-XX, levels. successfully these that the exceeding $XX.X results revenue achieved prior we pre-pandemic development, expand a trajectory. solid revenue At manage with reflects same success marketing The a growth and sales, expenses, the investing along global new time, to multi-distribution three-year the our of growth our strategy Dental for areas market. product worldwide our the technology. new continue while in dental the analyzing to division we carefully in

we As partners. result, and are successfully global a adding distribution domestic

our efforts, grow strategy, new global through increased with combination decentralized this looking to network As System are we customers large as new as further that and sales groups, an In STA coming years. and the forward business and and to further current with expanding as train international our are parallel, the Andau bring to recently Anesthesia the announced United can Single Tooth Dental that Canada. in the Medical United our States, In working States agreement closely with in an Dental distribute partners they the partners look example, as areas DSOs, dental through generation known in dental Service on sell strategic Organizations also channel we aesthetics well or as we believe marketing dentistry implant in We their distributors. help can and specialized dentistry, dentists. next educational such sales of the of of we

positive Our standalone continues flow Dental a to cash business generate basis. on

continue commercial and economies from made our recurring margins of we due scale disposables. this on business, CathCheck XXXX, to advancing nature to the we CompuFlo system. issues year, Epidural around have past benefit beginning time, efforts to As major of and high and pandemic. progress we the instrument our In the to expect At we had due setbacks the the grow over organizational the same some

programs, our force. That vaccines the However, due up triggered arrival invest last year. quarter our to in during again opening decision of of new vaccination and sales hospitals second the to started heavily

States. in individual correct is August, the United that salespeople experienced still of commercialization medical that are representatives first day. full-time field goal real maintain would sales of in every the over calling when XX on hospitals number the within to began, the that our changes decided As management months be it Irrespective the the few XX group,

We sales have high a standards set for and closely team their performance performance our basis. daily monitor on

sales as appropriate. to continue personnel add will We

trade monthly and consumer brand our in drive our representatives During medical Scientific was on the soft From were digital videos, the media Through featured and marketing strategic and ZDNet, outlet relations, with training received sales tactics brand qualified we've align and stronger aid and second marketing messaging. media in half educational literature, to million marketing leads. X a Both awareness of include: was XXXX, dental digital had to to efforts users. materials presence, recently deployed communications. perspective, where focus over website resources there and traffic. decision materials enhanced image These the tools a and refresh digital a consumer and additional Milestone success product better a with brands new

year, first As our an XXX%. example, from website have the visitors XXXX the first this quarter in through by increased quarter

and integrated key an communication target elevates marketing awareness strategy that brand's our audiences. deploying are We

related our I'll in of initiatives, disposables begun and marketing we a As combined setback to the and despite a management to further have pandemic, result a sell in systems moment. to our hospitals, which key discuss care health detail clinics, sales pain

following hospitals. Although the disclose to allowed XXXX, to we are not sales names we in always the announced

a the Health leading the approved hospitals of of one Florida in part an systems our one the technology System, States. signed which in of largest Florida. introduced and Regional Hospital, Care We and facility the health agreement Memorial major in flagship Memorial is we teaching United First, the of as at hospital, vendor we're Northeast

global Center, Additionally, we supply Memorial belonging a to and of verification our Systems disposables Health We're University Hospital, CompuFlo science group, academic of Hospital in thoracic and particular, one We're higher indication the morbidity approved of Clear much the are the health of in of Carolina. health South system And network selling CathCheck are national eventually rates premier across into Europe Medical selling hospitals for we same in the in hospitals. Germany, received Healthcare incident added into major this Regional indication. Lake Medical into center Epidural University system Campus Galveston approval Wurzburg, care a to influence. the Texas brands regional selling where in for internationally, of leading

global their international process as we distributors devices such Each in reach these medical Slovenia have introducing Switzerland, our additional in of of Emirates. new within within by territories. markets addition, distributors bringing relationships Arab distributors expanded adding and track records Canada, in markets and Austria, global proven United also on the markets. the new In We're key brings

leading Omicron in of initiatives. belong back large which our care alone, three hospitals, health to to Turning we all immediately In sales December the cases, announced of spike systems. domestic preceding to addition

delivery than significant that is restrictions note resulting However, of abrupt other vaccine, within was the stricter This impact our more that in women pregnant to activities labor a opted and hospitals, the came other pandemic have due so important fact the had departments. It on departments to to the hold. an than much out departments. many

ability As demo a to instruments. to our our enter and unable limited trial the result, team operatories, sales which was the

variant several our mean the field, and remain assuming another and there With up off. that impact months. we This our doesn't although things we restrictions left are reps picking we waning, business. that in won't specifically pandemic, to be where by now and have back or the are But ease, the activities, delayed resuming variant are stable, spike the Omicron could begun

and number care and Our and a of growing, with is discussions are sales advancing we hospitals pipeline health institutions. solid

Tier addition hospitals. presence, also X our growing regional university Florida, especially in In teaching targeting to we're

hospitals names sales greater credibility Some the smaller with institutions. cycle of will the of that nation. are begin believe some to the penetrate the top in that as we and reduce some of add well-recognized larger, among these XX We these

of reported delivery not and epidural medicine We million CompuFlo over Epidural to centers, market procedures numerous the within our also includes The also only specialty System size management expand sports sales and centers segment market the pain pain XX each least pain U.S. hospitals, the With twice continue year, market segment. labor centers. outpatient at the clinics but across is of

Govil, President the Harsh at pain recently across la de on management begun for which Society the network CompuFlo are specialist, Similarly, of at in the receiving our Florida Healthcare. clinics technology and a lower begun Dr. these his leading management Dr. surgical pain practice. practice Physicians, has positive Garza of to recognized physicians Interventional also and approved in within services businesses has Dr. feedback ability our outcomes using using better Partners, achieve instrument la one Pain his de We at and our leader management. based We Miguel in that announced cost. among procedures technology largest their a within Surgery Piedmont Garza, Epidural use of conducts the pain growing has country,

clinics we in have I good pandemic first the quarter the year. of of result pain strong explained emphasis a As issues the and this on earlier, the

see, As these you efforts are off. can paying

in Specialists we CompuFlo prominent Just California Surgery and by disposables Center California. Santa Management Surgery owned in Epidural specialists. Maria, located with in San practices and the of Both management this are Cypress the we pain sales Obispo of management Luis Pain California these week, in pain announced commenced Galileo Center

management the now clinics. of first disposables specialists' two our are selling pain We three in

was shifted sell resources during the we clinic to into clinic third after the it pandemic, The but aim as reopens. closed third they

the as pain and less delivery impacted clinics positioned hopefully and in to labor weathered the than following storm believe well have labor pandemic pain we we been as spike cases, the markets delivery of have well are Fortunately, recede. latest in worst but management as continues the both and departments the

committed we establishing risk So new reducing Epidural by relief, our summarize, anesthesia care with goal effective pain the while complications. CompuFlo epidural the remain of of the providing of instrument as standard to to patients

clinical rates and objective this turn detail. and Controller, Epidural extensive go by confirm Our the At reductions in over published as epidural to changes of over Please within true data safety to the benefits System benefits minutes. financials in well the CompuFlo ahead, space for significant Keisha. economic to offers go Harcum, complication as detection point, Keisha to like The call I'd institutions. pressure resistance punctures backed the loss demonstrating are of of and clinical verify Epidural epidural System CompuFlo

Keisha Harcum

share $X.X medical profit versus million million year XX, the revenue ended force year same XXXX, opening for the for the sales XX% period revenue the comparable ended to December the you, XX $X.X approximately shareholders $X.X XXXX, year. loss ended year for XXXX. year was ended was net Thank Dental loss XXXX, the $X.X a million million the versus throughout increased device -- was XX period XX, December XXXX XXXX. Total of $XX,XXX compared December rest XXXX. XX, through $XX.X to share versus Arjan. same or XX, XX, XXXX Digital XXXX, Operating in million ended $X.X year the approximately direct December for revenue of period ended December common year XX, year was revenue loss million last approximately December we ended reopening $X.X Medical the for ended $XXX,XXX million last the and for customers for of for to was or $X.XX as million offices for for December XX, year XX, of or per XX, Net world. the for distributors. $X.X the of country or and XX% dental versus Gross to year $X.X December attributed XXXX. approximately $X.XX year. ended versus And the million approximately the begun revenue $XX.X December ended due XXXX, per versus the the the began months million for December was revenue $X.X million we've new for

the and assets Total $XX.X Now, working million. approximately I capital turn capital liquidity At over would like to equivalents current Haverhals. of I'd and cash call December and like resources. Company XX, XXXX, of to this turn the your At $XX.X was to point, million. back the million $XX.X had Arjan to attention

Arjan Haverhals

you, Keisha. Thank

ability provides approximately XXXX, As around and and to and to which Keisha equivalents a we accelerate strong medical us marketing mentioned, cash sheet XX, December our of instruments. and continue maintain as our balance of activities $XX.X resources with the substantial cash both dental million sales

new we instrument, the practices. and our help supporting Tooth market of we sales momentum increase and are and and dental, we efficiency we our instrument marketing sales strong our Through the believe in efforts are in cash XXXX. growth to Anesthesia We encouraged strategy hand-piece believe instruments new and will safety, years. our as of instrument, we on expect platform developed coming growing efficient around an penetration importantly, launch by this new instrument drivers Within scalable continue dental our pursuing are value enhanced interest dental the also planning the position, significant Given the focus our in have to and drive our to SDA, Single decentralized indications. our including

which believe market in the the of standard transform potential confident care. will CompuFlo become System, we ultimately and Epidural remain we addition, In of industry the the

Epidural to we call underway at we forward has medical today. to But purchase barely unfold. which will look for joining further like that to number new opportunity, States pipeline, shareholder and solid call would to are And the to and committed I'd United orders. clinics value in we a like centers our developments and hospitals, open the have our you a providing surface. we remain expanding Operator? to marketing of initiatives, point, Importantly, as sales the including pain updates convert have believe trials thank this to in selling up on to we questions. and this CompuFlo In We sales management disposables order capitalize the stretched begun resulted Europe. driving

Operator

now from the Instructions] Vendetti ladies is Certainly, open question [Operator from Maxim floor and is gentlemen, questions first for Anthony Your Group. coming

live. is line Your

Anthony Vendetti

salespeople. wanted the delivery on pain and to XX market. you I you Arjan, have And mentioned the market because labor twice focus it's

bit of And to you revenues? you market? the talk a signed have exactly what You've you're the about sign -- on increase so accounts, to you wondering continue some mentioned accounts salespeople, their I good up And which grow spend? hospitals, XX the was little well-known do some contracts could know how some increasing marketing the you you I that are these call. if start how up get you hospitals the utilization targeting resulting material you then to as pain about in

Arjan Haverhals

you Thank these asking questions. for Thank excellent you, Anthony.

the well, with private in like And we start market the segment. Like the work is So I segment. pain we know importance code. morning, on that of let me would -- important, pain what market mentioned pain emphasized the as I people introduction reimbursement the this assume the how would

provided. That's so, And reimbursement rules be performed the of the prohibited data needed over that's the CPT prior to our code. a as because of submission, as part about management looked strategy example, that submission years at the But a at procedures well, patient for time code. XX,XXX of are

are indication, submit all market changed. Iowa, indication. segment. FDA the reimbursement thoracic code. a And consultant, bit XX% States is it's -- for of the same the a for epidural temporary in We specialized a submitted in XXX(k) within year, XXXX. half completed indication. Anthony, second have and also a the And I great year. of course, in you obtaining guardedly an the reimbursement at of the time, not the the unfortunately that we a increasing to because is this -- were impact However, would at we the to guardedly the a alone. A and commercialization code chronic about private accounts submission in indication the procedures results guarantee, study I'm accounts we that the such the apply by thoracic meeting major of approved a in the United and Europe. was half technology again, over rules indication the but also to optimistic our on in FDA flavor, I'm whether on and presented and in first for And have of both University little anesthesia in planning to give in optimistic pain learned filed is approval have this engaged this and of pain, potentially and used in the indication thoracic an year penetration of clinics pain adoption of mentioned we for very code game the evaluated a the approval that might just And technology-specific this and and still positive to have pain thoracic a important impact submission which learned obtain February And these for the management. potentially, indication outcome hospitals this with a receive

Now thank question. address of asking hospital? didn't would to increase you question in If I you we once that how to I your were a And my the for go second because interested presentation. are utility correctly, part the understood we this in I

So, it we -- expand land and a have call strategy. applied we

skilled the territory But particularly that So further and the and inside stay helping then we the to on hospital penetration clinical to volume push have recruited are staff utility hospitals increase in enhancing the the the we team, the to basis, activities. we to with and our managers that are very a hospitals, staff the and when the and in hospitals. increase to utility activities the specialists well closing have, at anesthesia daily are at nursing also at adoption going these and

then usage and that of day, are have room the the anesthesia further of people utility increase -- rep in that a dedicated can we in operatory this know a our the specialist way, being and instead two recruited, the the in disposables. there environment nurses which sales in background every have So we specialist, clinical

Anthony? So does answer that your question,

Anthony Vendetti

It's think identified. helpful. We correctly the that's -- Yes, see think this I very device medical No, Yes. companies over you've across many critical. I years. that's

have they're site train increase help you pick nurses up. have well utilization, don't how on to I know utilization. exactly if this use not is, that sometimes don't to If And for -- and and anesthesia critical so someone having utilization that doesn't -- you trained think, that increasing

So, very Arjan. helpful,

Arjan Haverhals

Thank welcome, you. You're Anthony.

Operator

[Operator [James coming next from is Instructions] question Westat]. Your

live. line is Your

Unidentified Analyst

XXXX, back that, the And continued $XX,XXX,XXX; revenues revenues the decline. to would $XX,XXX,XXX. I to XXXX, after of go were which

be that or we've Dental. Company the question from to all long they got were has back to come even the to So, appears of The a of of the go -- they're trying majority where people. Are got package to sales It would be sell or way to somewhat. -- one facilities? introduce/sell facilities? CompuFlo get almost just the those of that the things questions would to tried reps sales do direct have people XX a full-time they the that Or

Arjan Haverhals

Yes.

earned was, the it that disposables. Epidural one-man also Dental the also million, So thank resulted there for in was I your I XXXX, $XX to the the like you CompuFlo on -- million. And I the comment the which and all absolutely research the that observation, sales correct. was for like that would were like System back $XX focus invested That your money almost Company was, Medical years, revenues in those business. going would during a and of is explain And And development show because Dental question. the to then that decline. we of we to was in the business. a then the why business said, investing

really that on a in words, business, of about including marketing to Dental end XXXX, focus with Dental and background at the the other sales reason was people investing And importantly, was of raise Directors, the in decided resulted, industry the available activities. end capital, year. why capital recruit cash Board, in of XXXX, the right that business. have that the not the enough the dental million and equivalents cash also to decided at $XX.X the in to working time, So in to Board more revamp to and and the there And human by

mandate to current to and Board the the make it Dental it And to for and grow has that me revamp marketing team business management the in to in clear. the made exponentially invest possible I activities years. business. to that So sales is shoulders us put given the coming and management and just under Dental the wanted

question, XX second that The of having, territory absolutely. are yes, your are we The equivalents. they part full-time managers

focus hospitals disposables, CathCheck the on the and only the our call disposables, only focus they private on on and So pain CompuFlo System, portfolio the they they and clinics. Epidural including

on targets suite, not laser-focused management admin customer and the do our supply. are they XX. encompasses product financial, the They procurement pain on are portfolio. the So risk not They portfolio company, C-suites, diversified physicians, the anesthesiologists, a the have CRNAs, the the with material product our and our

Operator

conference Milestone go session. will That back CEO Haverhals, of now remarks. hand concludes I to the for our Arjan Please closing Q&A Scientific, ahead.

Arjan Haverhals

interest time trust we the in your thank in positive in results obtain past would outlook Again, with the Yes. pleased were the I highlight that company and our also convinced this years. a year. to I'm like able you for and that pleased and is we that see for company. about to Management

and -- out to then website need have reach And safe. visit you questions, any our milestonescientific.com. or please at me stay do you please If further if

So thank day. for a and have your time, you good

Operator

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

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

Milestone Scientific (MLSS) 1 Apr 222021 Q4 Earnings call transcript