OFIX - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Orthofix third quarter 2020 earnings conference call. I will now turn the conference call over to Alexa.

Alexa Huerta

Thank you operator and good morning everyone. Welcome to the Orthofix third quarter 2020 earnings call.

Joining me on the call today are our President and Chief Executive Officer, Jon Serbousek and Chief Financial Officer, Doug Rice. the John. statement with it then start to over will safe and harbor pass I

matters call, will there than are on objectives. this X, is earnings expectations our such no and forward-looking based such undue contained forward-looking any the facts During plans, forward-looking make in we today, place forward-looking cautioned XXXX. guidance uncertainties. involve statements will that we are on on expectations, statements, undertake any such not reliance today's All statements. obligation not risks we The occur. November that as do as beliefs, provide of to and statements statements statements revise including strategies, Investors other assurance to statements, update are those and historical We our be of any statements making about beliefs call forward-looking or goals or

results be SEC made call from the we can XX-K different Form to expected for our cause materially factors Form risk the today the Risk include us well Some by make the as Factors factors disclosed in to ended and XX, actual our that later additional XXXX heading be XX-Q December under statements future. filed on year in as forward-looking the the filings

need If Texas. these office Louisville, documents, copies in of at you please contact Orthofix my

to for to of third to measures to GAAP refer point, will these to today's we believe investors results. our quarter At will call our these financial non-GAAP Please understand non-GAAP accordance in order XXXX review wish various trends, call, release press term in term a to refer matters over measures today's to and the determined announcing financial on turn supplement U.S. addition, U.S. I properly may this Jon. financial In financial the financial GAAP. that our short reconciliations as We results with long measures.

Jon Serbousek

across continuing returning increased we quarter, a are decline volumes performance results the as I team. the decline, throughout Month-to-month navigate then QX basis, performance XXXX lifted Despite within and and our trend reflects you the today's continued businesses call will I we a saw for during Doug, conference we XX% as across our are in on going performance. made opening and quarter, On largely I which to for third the progress will and update. quarter to we strategic normalcy. call, over on will in. quarter the forward joining very year-over-year to and Shifting of update plan COVID-XX on sequential driven Total procedure positive the down Thank a generally prior the out operate indicator provide perspective a our carry encouraged before before will rebounding some to third Welcome uncertainty we was and begin basis to business questions. thank review level a everyone by who that be to during of initiatives compared elective geographies the the quarter basis revenue close over quarter an the handing positive call. strategic you each our Alexa. have X% with the we financial which with quarter. currency volumes third On third strong constant year performance. reported line revenue for quarterly, flat execution we by our a restrictions X% on of was with leadership procedure provide view the the the new

to procedure growth prior this down our fit we volumes. BGT the bone by growth line sequential in sequential quarter. year-over-year in business continue our second On which observed our COVID-XX, within with need procedure be provide Sales The therapies. fitting trends units. turn versus X% let's therapies over solutions Starting basis technology in to declines was driven demonstrates necessary. impacted volumes. the year, patients the to performance elective Now were each and flexible XX% remote of is Bone by in with growth ability business up our these physician to to to patients customers the include of identify when a work with of virtual

global spinal implants. Moving to

increase versus proud report growing XX% U.S. sales constant in prior were driven year. currency We by sales to This the prior up at XX% over an are in was year. that our

used preservation products, sequentially category As quarter, preservation quarter. elective the up were this reminder, XXX% also motion are up procedures. over the million fixation typically in U.S. and XX% motion the over $X.X and prior which sales a is up second made spinal year of our in

see for disc. adoption to artificial trends continue the We strong MX-C

and XXXX sales able train Since and of of quarter double-digit in of Generally, up quarter sales was XXXX quarter. team U.S., during X% the versus in MX line prior their to Our third over revenue the XX% XXXX volumes, XXXX in our of the in the training as for biologics the in biologics our XXX were disc procedure down continued is year, reduction the MX-C launch pressure. artificial second approximately biologics, primarily on procedure during elective have coming result are the trained volumes of it defined the Sequentially, virtually cervical In a performing with XXX surgeons off the was MX-C $X.X growth business third million the ASP over third in the first surgeons but technology surgeons, as quarter. generated surgeons. we a quarter. new quarter market is procedure,

Sales a and of year procedure currency prior as and primarily such Brazil. the on XX% down basis, U.K. reported extremities and X% negative Moving a in to a certain as the on COVID of patterns result versus constant distributor on were basis geographies stocking our impact business. volumes

volumes. cases a up was as second may XX% in rebound COVID and on but sales in We Sequentially, put France, recent regions quarter. seen extremities many countries, uptick over certain such pressure in and have European elective procedures Italy the

segment While which to can procedures, are the certain extremities generally trends. of portion elective especially this like have provide the I postponed. progress and brief initiative, our would we mix not Due four our in procedures elective, it larger within structure we to believe procedures, of procedure overview deformity of trauma focus each elective business Starting made correction follows the first and are now a leadership. with the in procedures, this compromised strategic be areas.

we a now completed seeing we spine filled integration positioned positive global business, quarter. sales under well key announced, biologics are the Having all early implant product the our in and single of previously and new wealth second Commercial As structure. team the proven the Gonsalves global from of Integra as roles at senior during and Paul a the Paul Vice spinal announced LifeSciences. categories the results employment In to management leadership leadership President September, organization. Extremities. and Corporate recently, Chief experience Global of Most Paul Officer of as we President served brings

to hires we board. We a are the leadership on to still believe have within excited addition team business. his global growth we a few great have very the to organization. can extremities make But and He's of the him our accelerate

execution us, completed effectively and forward. that business we structure and to leadership We driving our behind focus our are effort the With now shifting have initiative.

our second execution, on operational are meaningful where Moving to progress. initiative, making we also

testament consistently challenges which been able our a with deliver for have through COVID, manage to continue associated customers, our is we to team. to As we

currently manufacturing second are Italy in operational our or had XXX% the global of disruptions. We at and facilities California, quarter during supply and manufacturing no this each Texas for we straight pandemic,

product will allow us to volumes procedure What in monitor environment, chain the while global the operational closely all enhancing reducing the stock goal of to our meet our products strengthening at and going innovations we and forward. while demand, demand timing to supply our learned focusing for now ensuring our to we with optimization working continue on are time of have COVID we We pipeline manufacture near demands. existing term to and efforts future supply supply same capital new

first our significant of product third differentiation. in as fourth launches, been the for and initiative, and which has products third innovation brings part quarter The as quarter the to me us of terms new well

to As we we virtual we in clearance We spine the nanotechnology positioned conference, new The at aid is of have stabilize consists On had the joint or compress presence FIREBIRD to the were the product porous we Orthofix. SI of SI NASS is to traction. have grow progress great how we System, designed this on has our and XD designed the feature. In that an has printed to we for to MOVE. FIREBIRD innovation ramping gained specifically fusion allow received technology year's new The where infusion. through a mentioned in is Fusion launch additional campaign, announced our feedback the strategy able made Fusion up in the System bone and SI Orthofix, this and August, positive October, process. surface A been FDA example sacroiliac new for campaign

While markets of the been some up new only we has Fusion to high in the open expectations launch excited institutions. for are a the the which have still SI in System, we but FIREBIRD release, for a are for announcement limited technologies, challenge

available system delivery is graft surgical graft autograft sites. to complete our developed deliver graft or O-GENESIS delivery synthetic This bone also new We designed This product Q-Pack, ready-to-use system. to was AlloQuent launched Structural bone orthopedic allograft, the cervical spacer also product hydrated drive Trinity which introduced is in lumbar procedures. for immediate use. line further MIS system, to The in company Allograft a

both revenue are MTF in they Graft opportunities, demonstrate Structural While our our biologics conjunction Allograft building small portfolio commitment with AlloQuent partnership. in valued O-GENESIS Delivery Q-Pack Biologics the and to

pleased presence or abstracts and able scientific ELITE the viable very this course artificial during the customers participation were Fusion had and disc, a our System various Beyond through Throughout Composite forum on gathering presented we the PEEK distributor were surging from in cervical the MX-C strong Titanium we spacer highlight partners. NASS. virtual our We systems. share with products while and our the podium and of and variety new excitement a meeting, launches, with experience with new PTC Allograft multiple to the we data, cells, of scientific product Trinity our clinical SI focusing FIREBIRD abstracts

this Medical spine privately we we solutions. procedural and very under spine just market announced of leadership an are September, Neo company encouraged getting late investment at Swiss-based outcome the and team, develop new efforts held While driven In innovative with outcome meeting. we are a our SA, to partnership on started based the

platform, pack procedure partnership infection novel improved increase operating reduce co-development patient of techniques. designs the sterile the reduce rates times, procedure focused and efficiency, through single-use to room designed device a Specifically, on outcomes surgical solutions including and

this ideal spine cervical the within position care further Beyond those segment. believe the advantages, the flexibility for ambulatory associated including and settings leader us market instruments forward-looking ASCs. our in a surgical surgery will collaboration are We growing as center expand

extremities. to on Moving

progress early good make with FITBONE, to nail. continue our We lengthening

the COVID, on System, created remain dedicated in launch to for our we through of Since of plan, distributor focused JuniOrtho the lower we a our recently deformity While the integration surgical Plating launched the a the fixation achieved we designed extremities, larger the specifically announcement already commercial ourselves our on for planning impact software software new We Surgeons months precise quarter, system and of for are with third we the JuniOrtho feedback FDA happy third efficiency. clearance the the the for pleased training, is XXXX. innovative users and for it launch and globally. focused product quarter delays to new and patients. exceeded building System was of despite platform. steps pediatric the preoperative planning accuracy the surgeon OrthoNEXT bringing the treating system advantages This how initial positive partners procedures. and OrthoNEXT allows and announce, advanced we started inventory been internal and revenue the in hospital track with limited creates demands JuniOrtho. to in six software targets of XXXX of first In address sequencing adding the our am I have on for initial In out Plating position deformity

System Reconstruction the addition industry-leading of along deformity System, platforms, now address Limb established pediatric care TL-HEX, the most deformities. JuniOrtho planning With our extremity all have with we preoperative and complex believe offering we to Plating FITBONE, eight-Plate,

commercial initiative, now strategic development. Moving to and our fourth final channel

transactional focus near from moving and We and bags. with term. pleased commercial you partnerships we adding making This multiple extremities long among we lines and bone and now and distributors continue transient leadership product U.S., our term the our long plan Outside spine the our carry teams, business spine to to the execute lines spine I biologics U.S. progress with with partnerships our product With over the in in distributors to to U.S. us developing quarters. sharing continue positioned on synergies away lines and future to that forward has in complete extremity now the are relationships. strategic am scoping and are look we the capture growth adding in that our product their therapies investments and well

to believe Doug, growth X, for Devices support evidence Class Before FDA's there handing that growth controls September and to the would special Class beneficial stimulation for efficacy. to to activities to from robust III recommended a prove requiring are requiring bone effectiveness complete these high I around the safety our therapy Panel reclassification should call hurdle on panel's to robust Orthopaedic with Medical of clinical comment over the of stimulators the Devices products and of we Rehabilitative the Advisory patient devices clinical proposed reclassification On recent We II patient. bone Committee, ensure devices. be data as these proposed like the the decision and

there pursuing believe to maintain be the stimulation to should our and finalized issue late indications. additional earlier not embrace continue market if share consider likely panel, continue XXXX, new little a than will any we development and bone the position. We on our the proposed product impact recommended perspective, will that we change which by growth business From ruling as is

significant to have we addition strategic our toward our performance, focus In of each achieving solid areas. made strides

at different XXXX. than As did the organization, we an look of beginning very we

to existing base. the talent a build highly talented on assembled We people group have of

We have happy to our and processes extremely have we organization the and initiated am this on performance. With With restructured to commentary execute. the solid that, product like place, teams call we strategies over successful going during Doug hand further would progress make will that optimize to commercial Overall, foundation our our now development I the positioned I with we and in the believe well us Doug? to for quarter. financial forward. are

Doug Rice

results Please good I everyone. release non-GAAP Jon our covered Thanks refer other reconciliations measures. net further and and then some call Many provide a into disclosures. the financial discuss basis. and on in our earnings earnings to of for are measures non-GAAP and morning today's details additional will of information our regarding financial sales today's

resulting XX% quarter, strong the The mainly to period. was in this Gross inventory procedure in the compared third to quarter. a volumes, the quarter to in decrease the basis currency from prior were reported reserves and down $XXX was up at Jon million, of the slightly on margin the U.S., X% constant As a a the COVID non-cash XXXX driver currency. year XX% for impact. noted, sales during in X% the third total not were of Sales decrease year down despite net primary on sales as quarter basis constant XX%, on due the quarter products increased elective XXXX. when International of were third prior certain compared to in surgery the market, lower

quarter of demonstrated marketing the flat quarter our sales, to third we were over quarter third second with quarter in increases. in and to volumes Sales we rebound of XX% trend sales margins as net our line expenses the was XXXX, and expect was historical XXXX as sequentially rebound third mentioned of saw XXXX. quarter. expectation the This levels as to which revenue in gross As back last the and

due net increases. total quarter decrease XX% from a and prior XX% as in sales, expect to to in last sales in G&A were We normalize sales This departures the expenses of as to XXXX third a result levels the year. the transition quarter executives down year succession marketing lower two and of GAAP net expenses revenue third expenses was prior percentage the of period. related year as of of

continued increase X% third on with period. and internal for new reductions travel of now primarily accelerating our expense lower Many development Additional the up quarter savings delays. of product X% support R&D targeted hiring expenses continued are our as expense short spend the buildout the due including into and were team and year XXXX regulations. new medical the driven project This third in our actions were to business restrictions in we the term initiative initiatives GAAP of by from approach. of quarter complying strategic was device prior our sales, net innovation to more

earlier mentioned and will spine pipeline in ramp As $XX.X $XX.X in term. of innovation to up of growth to and robust net sales XX% R&D from spending build This and in outpace extremities. drive our cause of the we EBITDA of to quarter intend differentiation or the in product third our year, revenue a efforts revenue percent or Adjusted revenue, both decreased million as the XXXX. near XX% third to the quarter in million down organic

third revenue, year our EBITDA benefited XXXX in new measures product of offset out is the R&D with building percent COVID which reduced of timing has in a from in As environment expenses of XXXX innovation quarter pipeline. adjusted the including cost in and additional our line this our the travels NASS and savings investment primarily

Now tax. turning to

GAAP the of taxes income Our in tax of effective the of was income to as rate GAAP taxes same benefit for compared income XXXX. tax of period before XX% quarter XX%

the XXXX, for a days receivable balance third certain XXXX. the After decrease third quarter $X.XX reported non-GAAP diluted using to per compared $X.XX quarter $X.XX XXXX. X% at quarter reduction was $X.XX effective rate, or while of per adjusted of This year. third earnings XXXX XXXX, end for XXXX. large the were down DSOs the the quarter accounts revenue sales GAAP third compared end the normalizing within was term tax of we earnings long to to when and quarter the of of outstanding as adjusting the third Day in our For primarily share XX items a of was in of to from for third loss of of versus at quarter the the days due XX prior cash

pandemic. successful customers We global continued from our amid collecting to the have be in

the end Our inventory turns of flat the quarter of quarter third of third XXXX. the XXXX X.X at times of to were compared

cash, compared strong end equivalents with third third maintain million continue liquidity the year's at XXXX the the to previous end Regarding quarter million position cash the at a and cash, to of $XX restricted $XX quarter. we

advance received Medicare XXXX. of we the on payments during part Act million in second mentioned of CARES call, quarter the last As $XX.X the as

advances repaying our repaid accordance commence quarter, XXXX revolving we in credit these on April directions. in of will in We million government remaining has under line $XXX million secured Late of no outstanding outstanding borrowings our facility. with the company $XX now The credit. the

provided operating earnings based $XX the the an quarter, to earlier, with Net of outcomes. As loan and term new place develop early back compared Jon single-use spinal beginning increase solutions $XX million partnership the October, to mentioned cash ongoing million and million partnership In up primarily year. cash to activities Medical the invested by the improving we COVID million Neo through at coming the to in in year convertible due in equity prior into instrument Neo extending an support announced a initiatives cost of of combination focused on Medical savings in half patient a was in put a the $XX from market and Orthofix $XX investment.

the million on increased the operations our training quarter due turn expenditures surgeon facilities well has last prior on to was quarter capital from during learned business cash the up in certain we the $X.X attend on conserve decreased in as cash flow, we third expenditures excess our with due minus additional million now and year spending initiatives the spend $X.X and also to call as from year. up year. cash Jon. COVID development from to million of provide to free virtually, the saved operating strategic Consistent will more which to I million period Capital million conferences has cash. prior projects which $XX to define how back IT as pushing compared to flow, approach were cash from reduced spend targeted Our over flow $X.X $XX.X quarter, have

Jon Serbousek

have procedure still moved in the environment. volumes great drive the Shifting Doug. and have seen procedure Thanks our great be innovation ready volumes remainder deal still COVID associated third to there a Orthofix for within with and continue strong outlook the our of differentiation quarter. will year, There's a the in revenues is and volumes, in being to uncertainty of commercial elective balance out. rebound regarding how market this in play we procedure about But to of at the the XXXX. elective right will year the In execution execute to which ASC volumes procedures to patient's the direction to unknown factor in performed. for approaching the head procedure we of QX, with performed trends those willingness a is rebound or to hospital and a this key procedure schedule the that saw

We to U.S. have have in our business volumes, seen variability. more OUS continues stability some but

build the time. continue they at because to not the of drive uncertain, themselves We this said, present forward-looking beyond. COVID-XX quarter provide fourth the environment, and the year opportunities for recovery global the years some the and advantage fourth will we year important pandemic included throughout remaining of we and of scope duration success last of put within in we of will that position adapt, the quarter to tremendous great many Despite the business timing strides With have guidance take new not It note, and when would that come. large a of to reoccur and orders expect made stocking XXXX. to QX in is to challenging ourselves

for Thank like needs. provide With to this continue to uncertain, would remains challenging the be and continue Orthofix care. environment working all patient the to the I around at world to their you lives macro ready providers healthcare patients Orthofix meet questions. help their now will help that, the improve line and to surgeons environment everyone to While patients' open through

Operator

Mathew comes your Blackman And Instructions] with Stifel. [Operator the from question line of first

Mathew Blackman

okay? hear me you Can everyone. morning Good

Jon Serbousek

be with you this to Good morning. Matthew. Yes,

Mathew Blackman

of all, impressive first really result. XQ Well, Good.

questions. if we the was I to congratulations there start, But just at of look the much And about all working out. across is is tough I to Maybe recovery team. couple as results think this of strong Jon, franchises, a a to through tease know way XQ could So how the follow-on new backlog that the patients of to the follow-ups. a about pockets funnel? regional versus was Or recovery is, then assume think weakness? to U.S. broad-based a from I return are And when of still I a country? couple have And then of of standpoint, sort it across I there a

Jon Serbousek

Yes. Thanks, Matt, for the question.

at it As coming areas. market the pocketed in we look trends back, is certain still

Let's seeing far to come outside., smaller. becoming there care in and the for and U.S., time. other procedures a certain are it's narrow, checks the U.S. countries down regions channel But OUS. are such basically have for as outside But period done. the harmonized, some have the the be And still U.K. been as with U.S., reluctance discuss back we are pockets. patients for there that's locked specific that relatively In as surgeons but versus some still

down. been some including Germany, still have are and also of to countries early additional Spain. activities, And restrict procedures basically we those Italy So starting see locked signs to starting

monitoring the so back U.S., to with levels we of to XXXX the But those baseline near that And watch we are have patients. exception reluctant the come in closely on flow.

Mathew Blackman

headwinds do I you think but anyway. if not But an a a it this going I shot Or give potential called stocking quarter? just is flat of fair you in the out, could you incremental the of the probably fourth could And up? to appreciate XQ, COVID headwind business remind headwinds? question, us And that. are the am stocking isn't to the in there drag be magnitude

Jon Serbousek

do. That's a hard to one

far activities. a number as mode as channels of and our We are the in rebuilding

consistent And being are the those we elective the seeing just as months And will performance the on we quarter. so as monitoring available. whole, drivers be, the procedures. a are procedures And elective within are real far

Mathew Blackman

stocking the someone what could magnitude? just me remind is that the then And year-over-year, headwinds, drag

Doug Rice

to this Doug. Matt, orders year, had don't stocking that recur business. $X.X what call this choppy we about year of lumpy in is expect our I million or would Last we extremities

Mathew Blackman

I Thanks. I queue. Okay. get it. back on appreciate will the

Doug Rice

Thank you.

Jon Serbousek

Thanks Matt.

Operator

comes Raj Denhoy And from Jefferies. your question of next line the with

Zach Weiner

is This for Zach, Hi. on Raj.

us. what procedure about played few in out through resurgence the how you And have procedure for volumes? a coming Just volumes has of seen the you talk quarter? Can that October? of COVID And

Jon Serbousek

were we relatively OUS. basically And in that in again, the The break between choppy, U.S. here the consistent or OUS, U.K. to basically quarter, had procedure basically volumes that but quarter. Italy the third we volumes in were where month-to-month markets in we then still it some in throughout procedure need And areas accelerated third the other were and down restricted. U.S. the had locked the

handle monitoring effects So country-by-country. stated. was it I you as region-by-region, on as have the to in lockdowns by further in volumes, as But as And procedure regions are forward. consistent of U.S., month-to-month it fairly far we any U.S. the go we

Zach Weiner

the been entering on Class that you any competition has down-classified market II? now anticipate do bone it additional then growth Great. And stimulators, Okay. to

Jon Serbousek

Zach. Thanks

still any are monitoring published. finalized bullish market even in we this we today. we line entrants the seen not or But a have as into We our we still have then, in highlighted The and prepared being away But is re-class, speak period new from very competitors good and as product are market market closely. the on space. remarks,

features far We have a all sales of the robust channel. as as very

We have our cash. order all of

will have also have contracts business. bolster We our trials which this we we continue of on. basically continuing decades to work clinical payors. to to clinical invest are with additional And results, and IDEs of basically And all in we

competitor there not is yet. one will we a have coming forward, So If of as seen prepared. be we

Zach Weiner

Thanks. Perfect.

Operator

your And question line the from Ladenburg comes next with Thalmann. of Jeffrey Cohen

Destiny Hance

go any where development just And of? kind you remind if would I taking Medical back our are for term Neo us Can to of like you near we milestones Thank should is Hi. be aware to the agreement. today? questions. development there

Jon Serbousek

Thank It you doesn't Jeffrey. like for the sound question.

have? we do who guess, I So,

Destiny Hance

talk Nice to Destiny. Yes. It's to guys. you,

Jon Serbousek

can very is very based co-marketing in a about learn into and sophisticated disposable instruments ASC Neo we system are we existing you. company relationship, far as co-marketing They Thank the preparing Yes. technologies. limited bringing as forward. Medical so markets going and that environment have a these an already

did activities. a we We revenue not have accelerator. as activity. those So did a this as do this learning We

will be in around so we real-time the And U.S. and monitoring activity clinics in that ASCs

On as already quarters. apprised we keep have developments shortly closed and side, we we those of after co-development in and we forward initiated out the are will the those ongoing deal go you

Destiny Hance

Okay. now. am talk to timing. you. Thank I I about love clear

headwinds of could also FITBONE, either of launched some seeing give full and So the idea or AlloQuent slow kind you you And that occur? newly launches products an of these launch accelerate or those could what O-GENESIS of could tailwinds timing us of a maybe that? like when are

Jon Serbousek

you. Thank

So AlloQuent now. They available market speak. are being the O-GENESIS as introduced into we are and

and situation unique a XXXX. Regarding FITBONE, integration in commercial having integration in COVID you But through on basically target an in an imagine, are forward in the building and of And been we might the working now markets we that U.S. in and activities the right actually, look capacity. we are Europe. that, currently we are as through we plan you acquisition. integration are And doing products are in working has area to those

Destiny Hance

Okay. it. back jump will I I appreciate in queue.

Jon Serbousek

Thank you Destiny.

Operator

line Sidoti the Company. from comes with question Sidoti Jim next of & Your

Jim Sidoti

me? hear you Can morning. Good Hi.

Doug Rice

clear. We Jim. hear morning, Jim. can you loud Good Hello and

Jim Sidoti

for me, me, know. All right. you just It's so

Jon Serbousek

you. like Sounds

Jim Sidoti

U.S. the In for me? the release that All were give have number a in Do MX called press $X.X sales million can out you you right. you global

Doug Rice

the $X in way million a month Jim, I would is a $X is Doug. million think OUS, just run it. We about or generally under quarter this

Jim Sidoti

said September? mean year? am in Does quarter, that month-to-month. month-to-month I relative the comments, last were flat Or confused. sales to level then you in And were August, July, pretty sales Okay. your

Doug Rice

out quarter, we threshold saw performance third performance would I hit as July, quarter say September, we we during August consistent. and But each our month's were On we called the as fairly call, they in fairly recovered. second consistent. become that our that

Jim Sidoti

with ago? Consistent the year

Doug Rice

that's. Yes. Year-over-year,

Jim Sidoti

Right.

that type next Is is something going products? Medical three those that years five couple Or of or Neo the of and are Okay. trials through All still right. out the thing? the didn't I approval timeline the clear the just hear am wanted for is to launch question. that. then, And on be sorry, your answer in years? to more or four the I What and I previous that's

Jon Serbousek

we Neo a existing then ASC where also but has the into their And we that are we So parts. also relationship FDA it's co-marketing, already multiple product environment an Medical is have bringing an It's are in cleared. far our are we investment, already development a when come initiated calls. dates co-development and as will cervical back where as developing to they which have to going future market platform, basically bring we the

Jim Sidoti

Okay.

there will term? near the products some in available So be

Jon Serbousek

the future, In Yes. yes.

We the future they quarters. the haven't but in dates yet, side will those development set come on

Jim Sidoti

of the you management then Is focus complete And or sounds of have? going top area managers you you me. Okay. How and like to feel organization. the salespeople on one you much still All are number are about that right. last the sales reorganization number from It do of reps in level the where expanding? pretty with a the direct an

Jon Serbousek

in very, a our we So it's BGT area, is with very channel strong combination and have of that and structured. reps. distributors very we direct And how are pleased

side, as extremity forward. areas. spine And on distributors side have those we the are we creating strategic and are a working we also high-quality side, in go the of On still and we distributors more number the other

the will we leadership we are now back you our But channel have to there. so on in since sales report place. progress And our development moving to we

Jim Sidoti

Okay.

then that's going it area the sounds to be of XXXX, for like? So focus

Jon Serbousek

and Yes beyond.

Jim Sidoti

Thank Okay. you. All right.

Jon Serbousek

Thank you Jim.

Doug Rice

Jim. Thanks

Operator

to Thank call back over will Serbousek. I you. Mr. the now turn

Jon Serbousek

quarterly appreciate morning a Have forward we this time updating taking the We operator. everyone. progress day. everyone look Thank and Thanks, our call. on on our you you, to great next

Operator

for today's this Thank concludes conference participating. call. you your gentlemen, Ladies and

You may now all disconnect.

Orthofix Medical (OFIX) 8 Nov 202020 Q3 Earnings call transcript