MSON - Earnings call transcript Q1 2018

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

Operator

Good afternoon, and welcome to the Misonix, Inc. Reports First Quarter and Fiscal Year 2018 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation there will be an opportunity to ask questions. is event this note, being recorded. Please now Joe Diaz would like to to over conference the of turn I Lytham Partners. Please go ahead.

Joe Diaz

and results for Thank review ended on fiscal Kate thank XXXX. joining which for you XX, us year the XXXX, financial first of the Incorporated September Misonix quarter of you to

operator my is Joe the I'm with As indicated, conference Diaz. call name Lytham Partners.

the you and and Investor call not access company's the consulting Officer. conclusion at us Dwyer, session. have call, If the them open question-and-answer representing With Chief Financial misonix.com firm for text on President the Vizirgianakis, website financial Officer; websites. Misonix. We or company for full participating Relations XX-Qs, At copy of Stavros a referenced on are can does a the of Joe remarks, release from today's the call Chief today's Executive or are we the the numerous anyone and prepared will XX-K

prepared for provides the Form The anticipate, Misonix. are made. The the cautioned in include, are Litigation this considered Act uncertainties. these turn cause materially a Risk and conference that reports and Investors statements. other forward-looking on identify team subject current are remarks, forward-looking that, update over during forward-looking any statements, of on President of course will, call and risks Officer Reform are Form Before expectations management risks we actual XX-Q, and historical statements company's Form facts from The the and of not we to Misonix such that Safe but made Stavros? the to factors and to obligation words of discussed Securities disclaims the Executive reports for Chief begin could based statements. to the conference estimate, following results limited call let Statements this company Vizirgianakis, forward-looking XXXX by differ Harbor submit, factors not expect, forward-looking X-K. annual during me With call Private Stavros statements. believe, of subsequent involve with the on statements on Incorporated statements made statement. are record, that current quarterly XX-K, report to, uncertainties expectation management's

Stavros Vizirgianakis

and to interest for call. Joe you you, all continuing on We today's Thank Misonix. thank participating your in appreciate

solid XX%, XXXX The As half good to a primarily fiscal results second start. achieved domestic XX% is of you the Misonix. consumables the in business the financial the we strong in of release is for in of results on very year. saw a revenue press increased and today's the that The first quarter off Total increase strength sales. continued last domestic business core were

strategy our revenue drive and our our redeploying refocusing are recurring assets We model. to

our per the have to field and the to U.S. sales surgical products next XXX,XXX stated support to dedicated procedures utilization of resources sales towards We clinical and specialist XX support channel. drive years. use our our goal clinical now year We continue domestic add distribution three in within the of

revenue, accounted recurring XX% sales. the For for as which we total sales, total of consumables define quarter, QX

a quarter. U.S. revenue, recurring installed which sustainable quarters. products, consumable a in solid coming and have the first do the of at use base in believe margin, growing a We XX% that this make our level will at We increasingly believe to drive the for in so continue we came is

be there on and our and medical the for as bring U.S. in the clinical BoneScalpel and advanced the rate successfully market to growth the distributors the most suite. specialists continued continues market XX% increased products to of the although technology surgical they innovation During to The quarter, sales U.S. our example to the of is surgical our that terms delivery challenges ultrasonic of an breakthroughs. the segments services of U.S. healthcare for that and edge efficient the various the are and instruments cutting across remains scientific technology of in believe reimbursement issues, coverage, We innovation. population, of technological insurance firmly the

to control leading tools savings with complete the procedures generate Our accuracy, ability surgeons time, improve healthcare cost outcomes. less the edge operating room provide for greater patient systems, and and

During November, a we new as company kind. room. Society, innovation technology as the participated shows strong Annual event, booth demonstrating Spine at largest very as in one well better North our the in American of known of the its XXnd NASS, trade the of the presence The Meeting on surgical had

company addition, cadaver packed-to-capacity lab. the numerous the also at In surgeons trained

its a of drill Spine NASS instrument. BoneScalpel During partner. reduction bone substitutes. to which We minimum & long significant Jensen double-digit and a product grafting billion Wade totaling of People's of employed a revenue China, to in certain in An corporation manufacturing use forward Republic our rights data business efficacy licensed will Misonix care Hang spent a is operating Hunan next the Macau in the important Hong of when on for showing ensure more in-market important significant Orthopedics over in of surgical agreement international and under the In the have power BoneScalpel relationship Neurosciences, business networks Misonix another to $X.X the the line the development has a the outside believe cost license, and we XXXX key our compared and material on SonaStar rate quarter number four and distributors to Kang a business during brings for distribution mutually our estimated our U.S. believe the graft annually exchange million presented with Kong, our the that We of grew room. technology. strategy of bone as our can is XXXX, continues standard the savings consumable and Dr. of of years. payments company its the also we driving in look adoption standard become and $XX entered the technology we the reconfigure quarter, a Bio-Technologies, Center in that beneficial into and Xing use of Rui the Chinese procedures the strengthen manufacturing a first U.S. widespread distribution are recognize with personnel International support at in further for We new markets, as hospitals fiscal now focused to that royalty,

you in income no As surgical $XX.X maintain see, cash progress We the Medtronic we've made the million, measurable U.S. as can to in engine and of of addressing reigniting royalty we as the strong long-term approximately agreement. well a -- excess debt. growth historical have Misonix loss relating

fiscal revenue to off Again, We future. growth the are a consistent to dedicated we're into double-digit start achieving in strong XXXX.

than year. being the our of half. year forward ahead That we to quarters look remaining traditionally opportunities stronger our half the first of is fiscal fiscal in second the three case, The the

turn we call Joe's call conclusion questions. Chief will Dwyer, Let a the prepared the our me Joe? financial Officer, over Joe open for of Financial review remarks, of to for now Upon the highlights. the your

Joseph Dwyer

Stavros. Thanks,

of $X.X increased our ongoing XX% XX% sales expected. XX%, quarter, of mentioned, severance expectations. Gross and first total XXXX only last that the increased from expense included the $X.X run being With in as excluding XX%. for also the for compensation in commissions. will those increase relating $XXX,XXX of XX%, up fees in sales which the noise, expenses $X.X rate but $XXX,XXX, to $XXX,XXX, math our down fees up last XX%, increase quarter of equipment sales comp had first last do In fees, careful manage million expenses increase meaning the items, G&A in of for we included million up good by As $X.X These increases last if G&A were said, represented million with about and increase to million. quarter, and development comp, sales first rate, Domestic go really profit from administrative line $XXX,XXX XX% quarter CEO. next-generation year. the XX% $X.X $X.X from sales to first came non-cash of we $XXX,XXX We're $XXX,XXX Total year. from expense XXXX, to line and our severance, non-cash sales million for million you a costs. million $XXX,XXX General a is in and G&A about year. increased $X.X if of international operating the Nexus million which at The $X.X same the revenue, the offset Consumables first investigation, total compensation quarter comp investigative by increasing per professional compared the fiscal principle non-cash an were were and during quarter. $X.X our expenses consumables fiscal you million quarter costs increased resulted to for Operating of and per costs, will quarter, being year. grow our of million calculate to by relating $X.X exclude for severance XX% and research run represented from with Domestic to in cost sales sales $X million XXXX, fiscal three year professional business. last or our sales project, former our net as a development the charge to increased quarter non-cash

concerned to happy under been ways as investors of And further expenses U.S. pointed current our they under the and report higher are last achieve payment I'm savings. are income than the royalty the of and in We slightly royalty. run the and that whether control, look final of about for cost Some they level first G&A to $XXX,XXX we is I only the have out, the recorded to year's quarter, representing rate year. continue control. surgical

to other transaction expect that revenue fiscal technology we during million additional we cash Chinese recently new relating and receive record the $X licensed. technology both which income will as However, of an we we've executed, XXXX, the to

offsets lost, about year. fiscal of last this the which the royalty, XXXX, U.S. $X.X surgical which For we million impact averaged

in was compared for quarter year. loss $X.X the per was the net year. loss The share with strong. condition the $X.XX compared last The $X.XX last quarter company first $XXX,XXX financial remains diluted Our of with of first million

no solid million capital healthy million, quarter, with was the of a cash position a $XX.X $XX.X debt. X.Xx. have Working capital of at working ratio the We end with of bank

the new Given prospects and expected excited position remainder expected fiscal flow from continued growth, about our and encouraged capital financial cash with additional working the of our are of strength China beyond. and XXXX position, and the and for revenue our deal the we're our revenue cash

the back turn me to call Stavros. Let

Stavros Vizirgianakis

Thank you, for open to like call I'd Joe. the questions.

Operator

Instructions]. [Operator

Joe Diaz

with Joe is Diaz Lytham Partners. this Hey,

a While Joe we like up, I'd question queue filling and to pose to Stavros the to have here.

in means As to the you value at, your that of the us of information that you product? NASS recent that use how terms the savings of terms can Wade in the Jensen Dr. works? Can it a of give us the you what to of really presented provided And event BoneScalpel? relates the that proposition sense related tell

Stavros Vizirgianakis

Joe. Sure,

one clinical provide a of get what is questions our value hospital in administrators we from the setting. think the I that on routine product basis does

do traditional fortunate is matchstick which enough X the that can get be purposes. used is we're commonly our study you today. for Dr. X millimeter And Jensen usable a the that have blade we millimeter to to a is bone bone, using more versus way for used which cut able grafting of So in the and ultrasonic Misonix bone, because which would bow, cut compared BoneScalpel surgery healthy

soft sparing are also We the tissue. surrounding

XX% cost actually a level were and bone. a which as level five were to as up more in to was on the double So procedures, viable the single because able well reduction we fusion provide able what biologics study, to is of we level in demonstrate study

in in average terms, material. an saving, to grafting able actually dollar bone cost that saving administrators demonstrate, So are is there hard of we is $X,XXX what about a a to

is example system. reduce this to not provides again, but we're a patient better in our So the an that able only cost outcome technology actually overall

to So be is believe that this we going really data. data compelling

Joe Diaz

comments his R&D new in about and type us terms to curious research the in of of or outputs? referred in and on products what's costs, maybe some I'm reasonably you're in Joe future development other coming terms providing clarity near

Stavros Vizirgianakis

Joe. you, thank Yes,

an was of I our think that that at innovation showcase the NASS some are items had future we the one room. line. to this room And innovation products was coming used down of the year's

be we'll year's of is launching Nexus, and the at those next One our surgical officially which products new platform called NASS. unveiling

are cut able innovation putting from witness to experienced new performance enhancements we So the the we trial into new the actually were the device uses some some of get room the and of to BoneScalpel platform. bone to on that

exciting. So all very

Joe Diaz

introduce fantastic. That's questioner. ahead me. it you Kate will That's for if go our and next

Operator

go The next Michael question MK of comes Investments. from Kaufman Please ahead.

Michael Kaufman

good work. Keep good Very up the guys. quarter

OEM I the stability, will think of Now which and little are about you went there's the point growth you of Joe of get model talk expenses old longer-term At people, when that up through willing and we're of what replace contract, overall the flow going think do cash to to adding a growth new and OEM bit lot you the ins because a business. the can contract, positive and a outs for profitability position?

Stavros Vizirgianakis

yet. be Michael. we're new respect guidance, EBITDA with year, With in, that to will coming guess do But that we deal Thanks, the to China this year. that expect not giving positive we've earnings ready accretive to be we could this I and that announced

Michael Kaufman

the at terms you repeat to I'm sales applied gather that stand question. and an wondering skin marketing the data that? value-based graft follow-up the a to you're where cost versus kind through on process? look value Thank of one trying proposition the I if going very of do And much, the rate and of BoneScalpel, you the applaud you've to to success operation on for in study

Stavros Vizirgianakis

Michael. you thank Absolutely,

I probably think we're where on further were wound, of with producing in data. BoneScalpel we terms than along

So committee add for that value booklet in provide actually hospitals. which have do our we is a VAC, data we

have a is shows wound you already in in technology -- reduction debridement. perform there data uptake that the do higher or OR actually we to So use which graft SonicOne a where

that are we and ongoing. studies actually data some a that is number that there So are have, of

going So on the the continue to investor what is we're web. segment update to do

from certainly for ahead But regards you of data curve. view time are this with we the will So be wound, time. to to available to

Michael Kaufman

for I guess presentation quarter? you one, results your when the plan first the to corporate last the do of update

Stavros Vizirgianakis

week lot At next we've analyst the deck. in made of think NASS, also done Probably or on I overall so, the a an to changes we'd presentation the booth.

see the our a will use more you lot of available, are which animations So there product. show

the out XX So QX in be with results that, I week next the together think will or days. probably

Joseph Dwyer

NASS, And website that Michael, presentation new that I the investor put presented that at afternoon. on we this

Michael Kaufman

I website. Oh send didn't minute, the you to guess something able, was somehow The didn't other out earnings find the I it. the normal on great, wire, I see as X:XX, point, of -- your at the business okay, last through but last or

the don't the future, I it's minutes So what your know XX call. like on normally, plans before but something have conference are to good

Stavros Vizirgianakis

Absolutely Michael.

Joe Diaz

a that in the has service we're Partners. here Michael, And one this release press the on is technical the at over is problem of getting terms time. out Joe that Lytham Diaz having wire issues of run into

top So so It information was has a XX-Q, The wire it's strictly of service hour of an issue the there. of is information. get that. little for a bit the been with X-K to the of the filed right the all out at the along struggle just

Michael Kaufman

went any to the Because hadn't yet, at I up online company's it X:XX, website, when them. of still showed

Joe Diaz

a having technical There's they're Yes, issue. no...

Michael Kaufman

saying, I'm and junk. but and X-K XX-K No, even the the all that

Joe Diaz

about at Eastern XX-Q I XX-K and found out the X:XX Time.

there. they're So out

Michael Kaufman

you I Really? anymore. you Okay. processor. much. up thank slow tie won't I must a Alright, very have

Stavros Vizirgianakis

Thanks Michael.

Operator

time. There back to turn question-and-answer closing our I over are session. to no Vizirgianakis the concludes additional conference remarks. This for questions would like Mr. at this

Stavros Vizirgianakis

like you. again to thank call. your to on participation you, and after quarter. the current a I'd conclusion to We today's day. of look for all Thank talking Thank the forward again you have great you

Operator

for The conference Thank you attending has now today's concluded. presentation.

You disconnect. may now

Misonix (MSON) 10 Nov 172018 Q1 Earnings call transcript