MLSS - Earnings call transcript Q1 2022 | Milestone Scientific Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Milestone Scientific First Quarter 2022 Business Update Call. At this time, all participants have been placed on a listen-only mode, and the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, David Waldman, Investor Relations. Sir, the floor is yours.

David Waldman

Good morning, and thank you for joining Milestone Scientific's First Quarter 2022 Financial Results Conference Call.

us Harcum, Arjan Controller with Officer; Chief call Keisha and of the today Haverhals, are Executive On Milestone Scientific. a results, posted issued quarter Company press morning this The containing XXXX financial the which on also is Company's website. release first

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

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

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

Arjan Haverhals

everyone to Thank we and have us today. than I'm another to more you, for million, revenue of thanks joining making David, report, solid pleased achieved $X.X quarter. it

we from down traction in this sales Although dental year, the pent-up was are period distributors as last believe first the to the slightly with of in were to That year, officers results orders last were pleased said, year. primarily we're reopen received last same demand market. quarter and and we gaining due from significant starting our the very

strategy, believe a large we organizations, well result of service are adding partners, new multi-channel accelerate we growth. dental a As distribution as global help will as decentralized and which DSOs, or our domestic sales

the First, record risks performed when of procedures. training Group Through quadrant could partner STA, fit representatives, numbing than allows of new implant support. without across we and since proven of of Anesthesia be track Single brings entire specialized a that for including that wide focus and implant and with for recently mouth. for localized Dental an range Group STA, discomfort occur has and dentistry complications the dental introducing require on regenerative general a Group anesthesia products, sales patient's dental more can our instruments as the the a a potential hands-on strategic Keystone use or across channel serving a system, Implant XX and natural it added specialists, US, Keystone dentistry Dental Dental STA of the surgical is sales direct practices Keystone a force Tooth procedures. the particular

Independent we they network. is X,XXX an grow Dental to current market, us, is Second, AIDA of to and their XX% of XX the American America's partner dentists. practices over target ideal market DSO initiative premier dental established partnership to is within broader approximately Alliance, part of DSO which support the the an for dental DSO a private with to as domestic XX% network years. a DSO within penetration XX% expected the play increasingly XX% role to over market. next practice The important

enhanced Thirdly, we activities. our education

their global with dental provides we which that distribution training. example, sales, hands-on Esthetic The an international core As parallel, entered STA look feature expanding be our forward we partners. as education are to adding an to classes new Professionals, curriculum. continuing In will further agreement we

respective distributors with targeting are their dental Specifically, networks. existing within and relationship independent territories we

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

due we margins our from high benefit to to the our and economies we grow continue scale of nature recurring on to disposables. revenues, As expect

Turning to and our our we segment, efforts to Systems. Instrument the continued advance Epidural Medical around commercial CathCheck CompuFlo

and a of which teaching validates the sales the States. trial our of safety and our continues to we CompuFlo this market. marketing and hospitals, systems, of as the systems As expound which trialed combined in hospital and and thorough further of health activities, approved addition one our to Northeast Epidural Epidural delivery disposables hospital, leading pain we is were Last a clinics. a a nationwide labor our efficacy and key The part United management evaluation in result of This month, approval healthcare have CompuFlo technology. System in in vendor footprint the major supply successfully our CathCheck follows

provide of physicians, our verification even greater catheter hospital, through as As subsequent accuracy a fellows, well teaching real-time and of needle seasoned placement, as monitoring epidural residents, tools placement.

Texas, Tri-State such Metropolitan on focused York strategy area. key and sales markets, Our is Florida, regional as New the initially

targeting our presence, to also one regional university tier we growing are teaching addition hospitals. In

and only market, hospitals, self-cycle believe of the recognized that are expanded and greater commenced XX at size in our pain the centers, medicine time, With outpatient not the add of begin year, includes market and reported delivery have also beyond the with the penetrate million centers. labor of epidural as At segment. sales twice more over which Epidural focus Surgery Surgery each pain specialty We institutions. the practices XX reduce will the target same procedures least recently of smaller among we California. sports labor these but specialists. segment nation. to by Galileo Some Center, pain with We top delivery are market CompuFlo Both management it hospitals names, owned credibility disposable larger, Center management these management the the some and the pain and prominent centers, Cypress we is to these the

office-based and better la incorporating Garza, addition, management by of major Harsh practice and pain and the the for Epidural physicians quickly. feedback adoption Instrument at Miguel have their surgical access lower business pain clinics Surgery safely based instrument of to procedures into our receiving In one for thought use la to services Dr. The in epidural Two CompuFlo are Garza, de positive management. the CompuFlo Partners, the Epidural follows both utilize the de and network Miguel begun ability cases we Dr. space the Dr. Dr. achieve approval Govil, outcomes across Instrument cost. surgical in among by to for on their largest leaders, country,

within disproportionate opted as as spike year-end impact of So, we pandemic departments of hospitals, women wrap conference the a Omicron many and latest the delivery up, had variant, on the our pregnant call, the out labor on discussed to vaccine.

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

resumed we the activities. With pandemic the restrictions, easing sales of have our

result, a an XXXX As year medical business. believe I our be will for important truly

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

formal we as provide We respective further commence these updates as commercial soon will institutions. sales with

institutions. true of backed data, Our benefits of offers significant minutes. the objective benefits CompuFlo pressure epidural clinical epidural resistance and The for and demonstrating loss reductions are changes System in and the extensive Epidural published clinical confirm verify Epidural economic as by punctures as complication System well detection rates, space to CompuFlo within of safety the

over I'd to that Keisha these turn effective become of At to reasons, management, technology as go will we for Please reducing labor pain point, go care confident in are Controller, For as detail. Harcum, providing and well ever over financials as while standard by with risk relief, Keisha. this to the pain of patients the in like new call epidural as delivery, procedures the our ahead, complications. the

Keisha Harcum

Total three million the last $XXX,XXX ended versus as the three for months million ending period XX, XXXX, March compared decreased was the Thank $X.X for XXXX, you, months for XX, same $X.X revenues March year. approximately Arjan. dental XXXX. to revenue

due distributors and versus three Arjan XX, in of to was months to offices, three approximately As first this revenue reopen. mentioned, XXXX, was starting who XXXX. XXXX, the March ended from Medical the purchases in $XX,XXX months March to in the are sales XX, $X,XXX due for quarter for dental ending part part large

the higher XX, related higher well new million in expense, common other three versus a due March in Gross shareholders in months was approximately spike approximately revenue the trial to $X for of million for limit per the hospitals, development $X.X net demo operating sales XXXX, for the and loss was the months versus the $X restrictions $X.X ending departments labor of $X.XX per ability new or loss to of three at XXXX. marketing tools. months instrument. XX% expenses for increase and ending for or the resulted Omicron within The share comparable XX, $X.X as share March period was XX, XX% of delivery a ending March XXXX. which to epidural revenue for in million our Operating March $X.X million Net variant three attributed or March on of expense million three XXXX, or part XXXX, of instruments the ending versus was XX, XXXX, ending to XX, loss $X.XX three and months the as approximately our months beginning and the profit XXXX. million Specifically, R&D

total $XX.X cash point, capital the cash capital would over the I working Arjan to approximately of $XX.X million, The liquidity company million. your this back approximately of at At attention to and turn like I'll XXXX. million, had Now, XX, current Haverhals. and equivalents assets of the and to $XX.X March turn resources call

Arjan Haverhals

Thank Keisha. you,

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

investing development and instrument in are position, cash new the strong also of our pursuing new a indications. we Given

are leading approved spinal for Just one toxicity. is complications thoracic but we technology just injury collapse, anesthetic address respiratory to indications TEA-associated permanent We can of risk root one plan and local platform believe potential factors, thoracic sometimes these our block, epidurals many for thoracic Examples cord to pursue. hemorrhage motor cardiovascular visits, example where technology can with of occur Europe. that many is of market serious or in new epidurals, epidural a subarachnoid our of abscess, we already include

So, platform both developed up, a we medical have believe to highly cost-effective wrap our growth dental and within we drive divisions. scalable to and

interest and call today. in open at growing well in the take like are instruments the you we point, witnessing joining opportunities would and up I'd market. we are questions. Operator? the disposables, to our believe advantage our like We to for thank available positioned we to of both to And this call the

Operator

instructions]. [Operator

first Your for your pose announce your Please today question affiliation, Vendetti. is question. Anthony coming then from

Anthony Vendetti

spike epidural Thanks. year, market January of opportunity, market. want a and know was which Xx to beginning I the Omicron. And the delivery on the mentioned, pain December, market the Maxim versus obviously - as Arjan. or Hi, was January Group. you the bit I little focus that in is pain labor

in And ability half concerns, this to issues had of hindered second quarter. into or We're the quarter? struggling new meet Have hampered this issues through so, salespeople any customers. the halfway that you any hospitals, any to customers having or get first with new or

Arjan Haverhals

not for Omicron variant also full and not and of entire for month department. any ago, products trial year heavily, to able the the contrary, affected we vaccine, pregnant were said, good women for products to trialing by resulted demoing yes, And technology seen were can good do very decided question, call take I QX reasons, because say, not a labor you I'm I hospital. the that when not on reasons - our our or delivery the Thank the earnings and have people Remember in was and understandable I pleased last to at and right? Anthony, that results the our have it morning. the I the year happy who the in barriers think that

team of end in of we and as as very sales Now, number of April, doing evaluation of technology. is beginning active trialing, our doing March, patients, in a our in in hospitals speak,

development positive that us. for has that to turns believe or do I So, returned situation a

Now, I happen there's But variant going cannot what's all answer know of strain environment, or is right, in don't now coming up. does going look couple look question, to if we into to another like hope this happen a nothing in months. because would the I this a - ball, our crystal - Anthony? because next the to I your move forward. I

Anthony Vendetti

like revenues, expect the quarter, I out have the to move should Yes. opportunity. trying lot side. side, had dental medical the in we to sounds you a on I'm this just guess we this on year? then move I it of figure - ramp through that and if the start just And as we through a rest question of as

Arjan Haverhals

no. Yes,

third in the UTMB we also quarter, So, we they but the are a ramp-up, more I example, our we products. reordering But second it have I the because hospitals depends hope ramp-up have we ramp-up existence. working a had for in believe longer in Like are that where that a quarter. have will

We discussions another are with opening them for up facility.

depends hospitals, to completely they well. instruments are it as on going pursue the what the us to whether want So, they purchase and with

Anthony Vendetti

reorder? in on average, flow. And once on customers How you - just often do average Sure. it say six the stage, three every early had general, once how it months? an your in every - if depends months, order existing Is

Arjan Haverhals

hunter to task much should what clinical we the team. be have too not are changed at shorter sales in once a is is Anthony, specialists. there hospital and at we people our also an volume. increase we but that to also volume the Their call will the hospital with That because we ensure the It's in secure our working No. model sales frequency, increase have save that in only, started the

So, happy. I every once reordering very if a will not period, three be hospital months would for be

Anthony Vendetti

Okay, good. All right.

large about dental Can either impactful, looks to there materially is it's because believe DSOs That's penetrate the be like this it the or And than great. you more to year in you market ordering of ability really DSO has you that. quickly particular that Can those? year So, are terms And talk any next - started return. revenues? could opportunities. then, about talk

Arjan Haverhals

good very question. a That's

AIDA, pricing But right? started believe DSO tender DSO doing and we through are So, piloting the offering it's with we with. can grow with help only their of the with our is was DSO them that a already challenge that that distributors business program that the structure, our business do four to pricing, dramatically. The I

of amongst so what we with So, we that are working DSOs those have, we those and it's not have make difficult a on DSOs. - shortlist to contacting lists

ClearChoices. You have the

Aspens. You have the

Pacific at potential Service with You any to Group. are looking the we cooperation have discuss And opportunities these organizations. Dental

start But could a experience my real now. point, Now, your get dentistry going be a past, about, in because from door not will rule an in it own active next are in is time it the to thinking the from segment that ramp-up, years. on, for DSOs, to XX to take but in, to have be foot to that will only later market the they - a us to the important the year be and to

Anthony Vendetti

in Okay, queue. I'll hop great. Thank back the you.

Operator

instructions]. [Operator

Your for question. coming today affiliation, (Ellen Please question from announce next then your pose Lipback). is your

Unidentified Analyst

is my This for taking Forest Thank (Ellen Capital. Hello. question. Lipback) from you

comment mentioned plans? on and You opportunity you epidural. Can the thoracic

Arjan Haverhals

Sure.

for of about epidurals this the all asking you are thank So, - during so year. X-X, XX%, XX% thoracic question. performed Thoracic epidurals

that or with if and space the So, cervical resistance much loss XX%. spine, is up the anatomy the the And the the you and normal morbidity you rates anatomy In in in the technique smaller. like do of today, important, in therefore, space for is the the procedures lumbar thoracic, is it of rules X%. the higher example, get thoracic epidural it's

morbidity higher my And a to having provide point risk all. indication have been rates those approved has the And in you contraindications, punctures. technology is be just, by not that Europe ago. you more effects, we able year at providing So, side the of marketplace, in already more the would

filed in the for the United We have States. FDA procedure

as us company. important So, an for it is a indication

I being questions impact get gradually for an going be able a the States, definitely indication thoracic the the important will there be, the positive but by genuine know and because always United to within to person, also it how Now, very I'm I'm FDA. our about don't will commercialization of it's be positive technology.

Unidentified Analyst

Great. Thank clarification. that you so for much

Operator

closing back [Operator instructions]. further turn the the I There floor for appear would management over to team questions be no to in like queue. remarks. to

Arjan Haverhals

everybody, today. you, your healthy. Thank Yes. for Again, financially is company time the healthy,

think invest We very the given for proven, thank I right have you a to current the marketplace. the the Bye-bye. still clinically team, right products, the safe. our spirit, unique and it's the And stay the company in right prices energy, right interest in and again, opportunity

Operator

does and this conclude Thank today's gentlemen, you. conference Ladies call.

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

Milestone Scientific (MLSS) 17 May 222022 Q1 Earnings call transcript