ANIK - Earnings call transcript Q4 2019 | Anika Therapeutics, Inc.

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Operator

Good evening, ladies and gentlemen, and welcome to Anika Therapeutics Fourth Quarter and Full Year 2019 Earnings Conference Call. [Operator Instructions].

I will now turn the call over to Sylvia Cheung, Chief Financial Officer. Please proceed.

Sylvia Cheung

Thank you, Lide. thank joining and everyone, evening, you us. for Good today me on Dr. call the With is Chief and Executive Vice Interim Blanchard, Cheryl Officer; Business and President Jim Development Strategic Planning. of Executive Loerop,

review at on Cheryl, copy earnings and website year call, of of financial key in the were and our release section highlights, results quarter our issued our today's During earnings XXXX I will release Investor and our Relations Jim anikatherapeutics.com. full which summarized available business is fourth today. A

a & addition, posted to our We In presentation to presentation slide on the with section you follow now along website is Relations Investor us. open under in and a take invite Presentations the a moment the file Events tab.

Please turn to Slide X.

risks certain constitute conference uncertainties. our could during to expectations SEC the subject see beliefs factors that statements and actual more future from statements defined XXXX. in current filings Please Before made any forward-looking Exchange that results as based materially we call for differ our Act of information are and are and performance Securities achievements. These please this results. statements affect anticipated about certain our results, or begin, could on The company's remember

the most Relations U.S. measurement, views our GAAP GAAP, to Investor on discuss consistent with in gain financial performance. these how comparable available our measures. section the provide results -- will our is and a of A reconciliation we results call that and help more website. financial accordance is management measures these financial are non-GAAP financial investors this presented of believe Certain We calculated measures of in with non-GAAP complete understanding

Cheryl CEO, to our now will call turn Cheryl? I Dr. Blanchard. interim the over

Cheryl Blanchard

and evening, good Thank Sylvia, you, everyone.

or make outlook company. CEO, Anika interviewed Joe hope Darling, XX. our passion a I'd who discuss I the up When January the you start and passed his by to Before exhibits financial ahead, and and Board, every talked join remembering who Joe about away Anika we on President with her leader Anika's unexpectedly year results people like about to for Anika's

wonderful beginning into was global a and colleague trusted transformation commercial our led company. the Joe a a leader who of

will the Anika recently, the of several foundation, a continue led on Joe with reinforcing and set our a which its strong embracing path, he man strategic well-deserved about its industry leveraging care. guide to Over for reputation passionate our in growth Most plan, our strong a next strengths the over years, years. being X.X its innovation. X-year who great last is health he current development leader was

leadership, more. his humor we'll his miss friendship miss we'll and certainly even character, Though

Our Jordan. thoughts and sympathies go children, and and out Maureen; to his wife, Jon

Anika, We all that we are did for honor grateful to build on Joe for work his continue legacy. and he to to will and

Some of about Joe's you passing. asked have

can informed his will in Joe share XXXX, Board I for continue experiencing early we that to privacy, the wish While health he issues. was family's respect that some

Joe's His event his absence, us which designed health his a here the Joe Anika, to to of Office shock against regarding never Based and exemplary leave unexpected loss. and and were the lead are need all and confident saddened responsibilities Board contact performance the health. well his XXXX XXXX by and his communication, we that ability our He continued over-delivered Joe's Following Board was short private. ongoing respected Joe on a perform an remained in President The his to into progress Board to passing of take interim keep deeply of wishes to goals. the he condition the throughout strategic and needed. record, at might Board in in dialogue regular

next the Office to search oversight of CEO. while and the Anika's activated Anika's operations, the passing, provide of immediate Board began interim identify day-to-day Joe's leadership the of ongoing we President learning process to Upon

impact would that had take an light it particular, the interim be for the search. to all consider the conduct for and, President After best time the CEO of structure what opportunity in the Board the to would circumstances in to of on consider Anika Office time, the

of of our With interim am appoint forward President, the role that support to an the other the to the interim Board to and stakeholders. continue team and the Office alongside honored I delivering decided look working to assume CEO. for Anika shareholders

medicine in businesses. I and have biotech medtech preservation and and in joint the history with orthopedics world a long specifically regenerative

position the and market Given by with field, for impressed of company's the growth the the my its strength excited I was I prospects. confident in experience and achievements and potential. company's passion am

the the I Interim into step company. the I role future CEO, of about As of am optimistic

time to an team my financially, a I and the and positioned, team insight deep pipeline. operations unique the and with organization. product innovative and business, into talented both has capitalize opportunities gained expertise Anika Board, well the strategy and the development upon firsthand seen During to that of working the on is ahead. have management the with and the I growth have Board forward look strategically

launched commercial progress we Please talent the to the to internal to significant the hybrid now and internationally. our strategic model on that took build-out turn significant #X. added team; to like deliver under in steps and continued restoration TACTOSET, first and plan. orthopedic by executing transform to our completed into on leadership Anika X-year in force preservation company resources to of global our sales I'd XXXX. Anika commercial joint discuss a We Slide U.S.; product, focused Last our our commercial continue hybrid surgical expand redeployed small successfully world-class year,

better from expanded and product Medical expanded infrastructure, enhanced capabilities and and the shareholders. commercial deliver and patient more the completed base acquisitions enhance will to strengthened drive our portfolio, They and outcomes partners our regenerative pipeline preservation address sports medical our they value and needs, These our product diversified revenue our billion our innovative will for strategic joint revenue improved unique that these Anika's market. We in restoration importantly, and and unmet ultimately medicine also acquisitions Parcus sustained goals, legacy commercial position which accomplished $X Arthrosurface, which recently ability significant successful growth of distributors.

driven that the X said results growth testament often by products Joe strategy performance. are on is #X. Slide and And to and our XXXX continued that our focus to focus. accomplishments turn ways, Ps: people, a our many in Please

Development; Dr. Strategic Affairs. Steve Vice and people. the we Last with Bob our Vice President President Research U.S. of seasoned including to start added Business Vice and of achieve Development and Goldy, of Mira Clinical objectives, Jim growth and Sales, several enhance Let's Quality ability year, to Vice of President President Regulatory, our executives team Richard, Loerop, Executive to our Planning; leadership Leiwant,

successfully in focused U.S. directors the hybrid on our regional commercial directors TACTOSET. highly-skilled launch model. These Additionally, sales full under onboarded sales the X of we are currently

more hybrid enabled acquisitions U.S. Combined, Medical to approximately and scale Please sales achieve talent and of us distributors and than turn distributors. Arthrosurface to over far they These and of XXX more in a into wealth organization a and XX further commercial efficiently commercial acquisitions the and capabilities model of X. level to a quickly our commercial team. greenfielding reps XX recent brought added international now than commercial Slide infrastructure. enhanced our Parcus The our

with deploy the hybrid and economic provide favorable our commercial will We results. are model, fully deliver market excited Anika the sight direct more to to line of which

efficiency. Nearly have an TACTOSET Slide the in completed receive launch procedures Evolving XXXX we ease to we commenced use and community physician of procedural or and Summit, to OSET. the conference from In U.S. regarding Turning positive the Orthopaedic at Techniques XXX date, December, continue X. feedback full-scale of to been the therapy's commercial the

date, surpassed our we Parcus. leverage the initial centers. new To In XXXX, onboarding distributors, in goals availability distributors XX Arthrosurface X with have distribution at plan and grow we we product onboarded XX networks to surgical of and and

to we revenue TACTOSET from approximately be $X million. expect For XXXX,

for is progressing therapy to our rotator development Product plan. cuff according repair

frame. in We continue application Parcus XXXX that many anticipate highly This to and early with at FDA synergistic the a product submit therapy offerings we is XXX(k) Medical Arthrosurface. the to time will

year-over-year to we The remain turn to U.S. across with and viscosupplementation of third-generation in XXXX. International continued CINGAL, novel strong growth #X. close performance first to the XX% to steroid, the CINGAL deliver doctors from in XXXX. Please strong Canada confidence has track and Slide pilot of approval feedback from initiate CINGAL the in in combining continued CINGAL We therapy, regulatory revenue and grew Europe. the our half CINGAL, reinforced as advance our study coupled market. on both patients, HA towards

are preparing We of for patient the in process U.S. initiation enrollment. site and

success that ultimately study this a expect needed to III to be and approval. probability support will We our data confirm FDA Phase generate design, increase our trial trial of in

key prior to compared protocol first XXXX inclusion of in III There three the are study: this Phase revised The a placebo arm. differentiators is the

selection enrollment arm. steroid is profile. addition ideal the a third the patient our criteria of of larger is the second for The And patient modification the targeting much

take the which opportunity, complete. remain $X approximately to X year will market we be to continue pilot U.S. annually. approximately We estimate that expect in to We billion CINGAL's study confident

Please Slide X. turn to

On cartilage advanced our development medicine therapy, the for front, the repair we've clinical regenerative HYALOFAST.

we especially The fourth enrolled, the expect first expect the to close in of to complete XXXX. During and on sites, new the and we to internationally, adding new XXXX. XX XX% end work enrollment sites continue of quarter, we initiate currently to continued trial half patient by is

plan. and I of the am position continued our our to ahead forward excited and about in the look confident opportunities Anika's momentum, market execution

the Parcus Loerop call I that, our and Arthrosurface Medical the businesses. over With Jim to will now discuss for to Jim? plans integration turn

James Loerop

Please near you, Medical Thank looking our by key plans and X. I the start we of for term. targets on integration Slide the that and Parcus to achieve in are Arthrosurface turn Cheryl. to some will discussing touch

our as were how to acquisitions story. a the growth, delivering integration focused growth Similar view on process we

efficient local an with management. deploying are We organization matrix

acquisitions, focus following Arthrosurface we than even first transactions. more completion adding that them. both technology highly Medical and is synergistic were has When with we rather that become consolidating evident confident on Anika's announced capabilities Our were platform, both Parcus of and the the

with all on I already side, heard commercial from distributors have opportunities. we share across the cross-selling Anecdotally, three company the that can about companies combined adding products significant from

revenue we and opportunities process. by continue the capture as are received have integration positive will we the and thus far, cross-selling We we to work encouraged feedback these growth

In to optimize our to Longer product goal our term, portfolio our the on cross-training is our commercial increased and network reap leverage goal immediate is benefits term, profitability. the distribution and infrastructure, commercialize cross-selling to focus from TACTOSET. consolidated

expand coming product to us our Arthrosurface Parcus years. of the we products innovative and market also in pipeline acquisitions new bring increase to enable and number will The of Medical the

following We gate resources potential. towards pipeline prioritize our the with using to acquisitions and evaluate programs growth stage process highest currently are enhanced our these supporting

our pipeline later this assessment. map completing road We year will this share after

accretive double-digit deliver vitality revenue end XXXX, In a growth expect basis non-GAAP at acquisitions of above contribute XX%. index the the the achieving earnings to on be and we a that near will term, to by

over to Sylvia? fourth quarter call the XXXX year turn full Sylvia to financial I results. review now will our and

Sylvia Cheung

you, was $XXX.X for Please increased to X% Total to fourth Jim. million the XXXX revenue global quarter Slide Total the Revenue to $XXX.X worldwide $XX quarter increased for delivered growth for XXXX. by Thank driven products, viscosupplement turn the which compared fourth quarter million full growth revenue of compared XX% XX. year-over-year $XX.X the of for XXXX. XX% of year-over-year. year million primarily to million to for

the X% Domestic for viscosupplement year-over-year increased revenue quarter.

the user U.S. price for fourth user the quarter percent and average single-digit XX% year-over-year ORTHOVISC end end a U.S. digit selling increased a MONOVISC. basis, and year-over-year for the around MONOVISC average end MONOVISC. selling ORTHOVISC for mid-single On During basis, and ORTHOVISC for in net volume price a range basis. X% for increased On on both user quarter decreased quarter, sequential

fourth year-over-year quarter revenue the in product for the viscosupplement inventory and XXXX. full XX% revenue compared gross due to respectively. of charges for increased changes The International and to the the year-over-year was quarter margin for XX% and the decrease Product primarily was quarter mix. for XX% XX% year, certain

product year gross delivered XX%. For XXXX, we the full strong a of of margin

total $X.X revenue. SG&A of product Arthrosurface, in expenses fourth $XX.X primarily and quarter were launch as million expenses to XXXX. million related commercial quarter in expenses acquisitions to the The operating quarter of costs the year-over-year Medical totaled compared $XX for the increase higher the of TACTOSET XXXX. operating the the fourth Total in million due as higher cost of well Acquisition Parcus of to U.S. was

compared compared diluted $X.XX to per the $X.X for For the diluted the fourth full XXXX. million or share share XXXX. $X.XX million year, were Net was million income total operating quarter $XX.X quarter $XX.X million to of per $X.X or in for expenses

the for per was fourth costs, Excluding acquisition diluted $X.XX income adjusted net XXXX non-GAAP $X.X or of share. quarter million

per to or For XXXX. $X.XX increased $X.X share full net diluted the $X.XX year, million $XX.X per or income by compared to $XX.X for million share diluted million

income net $X.XX or was share. adjusted the Excluding diluted year million the acquisition for costs, $XX.X full of XXXX per

for last quarter for the year. Adjusted $XX.X fourth EBITDA of million the compared quarter million to $XX.X was

defined consisted increased XX% company expense and Parcus year, costs company acquisition-related For associated expenses. or the for the are interest Adjusted $XX.X share-based incurred, million income investment Medical expenses and legal, as of direct XXXX. result and GAAP $XX.X acquisitions. adjusted of million compensation related In excluding other a compared XXXX, and full have depreciation the net EBITDA and to accounting and acquisition-related fees other as Arthrosurface is income except by taxes, expense, amortization, EBITDA to that would income with the These professional not transactions. banking, the U.S.

We the and the approximately $XX acquisitions balance $XX to XX, months XXXX, million generated XXXX, first from XX approximately fund and employee Medical from option ended of Parcus cash in from exercises. we of existing with December the In ended cash cash quarter million million year operating on $XXX For investments our $XX in activities million. used cash Arthrosurface. the and we totaling sheet stock

completed share also our stock program. We January under of repurchased of in May $XX XXXX, XXXX. have shares that we million XXX,XXX common repurchase approximately program Since accelerated

open under We have not $XX any shares market had repurchase program. the million yet Board-approved repurchased

allocation We create the value. with to a will to potential capital opportunities disciplined greatest continue take to to capital we're our shareholder to deploying approach the ensure

to markups. to be for Please the million revenue charges. range. the $XX turn year margin acquisition most to gross purchase expected operating $XXX the $XXX to and $XXX due to accounting guidance to expected million initiatives to onetime -- XXXX expenses total XX% be accounting, in for inventory for $XXX are which around Slide related integration XXXX, expect review we million range. full sorry, the acquisition total low of million the This for which operating to currently costs, our be for for the expenses around in are And includes value key year, is and million estimated Total Product and of year is to year XXXX. XX be range noncash fair the

gross range product margin XXXX. expect We to to XX% the in return

CINGAL XXXX, Research ongoing revenue and development of of of a expected percentage increase and to the pilot primarily the programs. initiation development is due to as expenses study in advancement

Selling, of be Parcus Medical and general as a acquisitions and our enhanced administrative to of commercial capabilities in percentage revenue is from also as infrastructure expenses Arthrosurface. result higher a of the expected XXXX and

following discussed Jim optimize the to plan global As to our SG&A we integration efficiencies. distribution drive network earlier,

estimated the nonrecurring income are low around net the currently mid-$XX again, in based adjusted which, $XX the full expected acquisition range. EBITDA million to integration charges, For exclude expected year is million high of XXXX, to to million adjusted net million million the EBITDA to related high range Non-GAAP be income range. noncash million most in expenses and of to income net a $XX million $XX be accounting GAAP and is $XX Adjusted on to expectation charges. to for in be $XX year, $X

and automation the million, manufacturing expenditures be and expected initiatives. for are million primarily Capital between to $X operations $X year for

would guidance closed These been determination completed. estimate the recently could estimates assets for I this the reflects year. have final of acquired value assumed in once of early February value differences to the of be January Parcus acquired tangible And very acquisition-related and emphasize fair of Arthrosurface that our best preliminary and material. may this businesses. late liabilities purchase and Anika's differ The transactions fair accounting and those intangible from valuation like

initiatives. disciplined X our is key on focused plan financial the XXXX, In following

Arthrosurface, and pipeline First, XXXX. quarter map product of road successfully integrating third Medical a including the refreshed Parcus in

launch execute surgical and and the product of our TACTOSET globally. expanding U.S. Second, portfolios viscosupplement commercial continuing to

and in the including to the pilot study medicine our advance rotator programs. CINGAL therapy U.S. Fourth, XXXX in regulatory the half pipeline, towards of first therapy approval commencing development cuff advancing HYALOFAST, the Third, regenerative product other repair

for restoration. management the joint expanded into with Medical pain product acquisitions Lastly, Arthrosurface, on therapies historical of and and our significantly osteoarthritis we focus beyond preservation Parcus our portfolio

report lines. forward, product X Going we will for revenue

joint is includes which pain management animal human and the First viscosupplement the therapy, products.

products sports surgical joint category, medicine as HYALOFAST Arthrosurface. products such Parcus which orthopedic ophthalmology, the legacy preservation care And lastly, TACTOSET, Medical which care, include products. products aesthetic and surgical products, the is and wound includes anti-adhesion from dermatology Second other restoration and advanced and

your very would call Cheryl. I for Thank turn back you much the to attention. now over

Cheryl Blanchard

pleased you, performance to with company's in We're the XXXX. Sylvia. Thank look XXXX in forward our momentum and continuing

becoming while and We doubling sports next are X well regenerative our years. a to and achieve leader positioned that we total are are medicine, over revenue confident initiatives, also our in strategic we the

Thank to happy you. your now We're questions. take

Operator

Instructions]. [Operator

of Analysis. question first First Munda the comes with Our from line Joe

Joseph Munda

you me okay? Can hear

Cheryl Blanchard

Joe. can, we Yes,

Joseph Munda

of then regarding I to little He split the contribution what sense the give was regards then the wanted ORTHOVISC question really, your work to off, my in in and was give from XXXX regards about condolences quarter. MONOVISC, some to with. the Parcus quarter the want to the in of to guidance great contribution us I Joe. And terms First second you a can can said, guy the of incremental some sincerest you CINGAL and of the really quarter? maybe being sense mix, passing us in you convey what a be will bit the Arthrosurface in our the In That talk to forecast? in from itself, guidance,

Sylvia Cheung

Okay.

think want -- make I I So sure. just to

CINGAL, contribution The the the from then on and second question revenue first and on Parcus and third Arthrosurface. question is mix, is is ORTHOVISC on the MONOVISC

the revenue, for to mentioned ORTHOVISC, is the total year, and to of XX% revenue total our revenue ORTHOVISC split growth revenue. to between a year. the MONOVISC the to XX% our CINGAL XX% In and as our terms total of total of for revenue for for roughly is and year-over-year MONOVISC roughly close of year, of about we XX%, the is XX% grow percent And X% of continued is very have that strongly. roughly

Joseph Munda

the year? For

Sylvia Cheung

to commenting the just the our distributor because inherent of stick For year, year quarterly on like model. We yes. would because Yes. of to variability

Arthrosurface So guidance to our I plan for the Having on With revenue company-by-company reiterate, provided thank you we year, not a that is that. understanding contribution, achieved million. for from growth provide can a regards of guidance to do year between historical XXXX. to And standpoint, expectation will revenue achieved so and for your is consolidated our basis. We revenue $XXX said, XX% $XX year-over-year XX% they from was year-over-year growth total that in double-digit million million And future. this $XX the XXXX Parcus 'XX which to on $XXX 'XX. XXXX growth for continue million, they revenue and they and into delivered

Operator

Our the Mike Research. comes next line of with Barrington question from Petusky

Michael Petusky

you sort are going I guess just to the of modeling to from going of them disclosing a in are new are break other in How you going are that forward? -- terms businesses, piece revenue? these you perspective, separately out, business going of they

Sylvia Cheung

Yes.

consolidate standpoint, product a into families the and having surgical, will historical orthobiologics, lines So the The recasting from dermal we revenue reporting we'll Arthrosurface. and X be product or be revenue will families. of recasted. Parcus other, Instead revenue X

be Parcus So restoration ophthalmic meaning care, wound products joint like newly anti-adhesion well joint our legacy be category. products will and the The MONOVISC, surgical All a products, from products and launched preservation as other pain the as the as HYALOFAST, December in care and products, CINGAL XXXX. viscosupplement grouped and the will ORTHOVISC, management lines, products, which well human product be Arthrosurface dermatology own as in surgical other the products of will animal TACTOSET, is HYVISC. and

which that and in of a direct control because product category; office-based terms surgical now would provides the which be this be orthopedic of of the preservation think care sales restoration our visibility better operating And understanding products, have and we in model. I would the room-based joint hybrid line. full and products, in management pain our

Mike. hopefully, that's So clear for it's and you, helpful

Michael Petusky

forward? just probably figure a my for item terms you it That's of going it we'll And that Or that in out. just evening, going quarter SG&A? line going then to fine. is each You added separate expenses, an that. to telling be hour the is into integration Yes,

Sylvia Cheung

Yes.

will purchase the and is script go buckets million. And acquisition of primarily and which of are through And on majority integration related the the balance mark value. preliminary having the go sold due the costs, for this price So in I result in purchase portion $XX inventory through to cost estimated the accounting to inventory. product purchase SG&A. price accounting, accounting, the that roughly about to up that having estimate, low really margin mark fair X remaining There is the mentioned was gross expectation and most line, it's up goods -- XXXX the range. XX% why, reason the to that is of will to section, the And

Michael Petusky

Okay.

on to then do CapEx have And quarter, -- handy? fourth the just chance for by Okay. quarter this in you any

Sylvia Cheung

the CapEx is and year. fourth $X for for $XXX,XXX quarter the million to roughly close about

Michael Petusky

the And any there I Okay. the been what to of there allocation guess, we say, just, XX change Is emphasis, capital in any transition, hearing, priorities? terms Is one months? leadership X in question. change other relative strategic vision past had to

Cheryl Blanchard

Cheryl. take has is we've and are the know regard. you one. is there strategic I way that year I'll would in about changes, let changed plan no forward This we're that that five nothing moving talking the been that that

there. assumptions So in change no

Operator

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

James Sidoti

Can you hear me?

Cheryl Blanchard

Yes, Jim. we can,

Sylvia Cheung

Yes.

James Sidoti

some Great. -- onetime get of all to all $XX and charges in integration Will I at color be will million that XXXX? more want charge in XXXX. that just on recur those

Sylvia Cheung

Yes.

that are charge the there of may of to and that question noncash. be onetime, expenses. that acquisition-related size for little buckets provide would me think be X it fact So most Earlier, and bit the a -- the And a more is repeat of these I was given it I there's color. most saying helpful,

bucket fair amortization assets and costs. accounting, The the is purchase related which really includes price of first valuation

through charge this on is of So -- half based we going XXXX. is flow inventory. the that that will be valuation majority And the we that at to expect will noncash, be majority of what point on and

a that's So event. onetime

purchase those professional that's a smaller price a amortization accounting at get but into, will split. other Acquisition costs, to Some costs banking, to costs, accounting onetime. some and portion, related to and and be routine will I'll -- ongoing and onetime well. be the expenses high as be And that related are from integration and going will have are of purely is effect, is those it These nature the professional level, standpoint. system fees, integrating-related in legal, of are to related

So look noncash, would the that XX% estimate, that and would roughly that $XX when we at I million majority say of of the be charges. about will be onetime

James Sidoti

will -- when there spread more it in be closed? first the And Okay. is deal the be because quarter, will out year? Or be the that's will they throughout

Sylvia Cheung

Yes.

in So a X/X is would this about timing closings spread of first remainder and QX I quarter, will from roughly would this And transactions. say be between and evenly QX of timing due the Parcus the the of Arthrosurface standpoint, roughly the and to be year.

James Sidoti

Okay.

about your that on of saying up $X.XX wind share, about quarter? will of and a based $X.XX a in you're share hit the about So count, talking you're first

Sylvia Cheung

Roughly, yes.

Operator

line question follow-up from Munda with of We Joe a have the Analysis. First

Joseph Munda

Sorry. mute. Sylvia, on was quick. Real I

Would margin if of to margin it million? $XX to numbers were here. the XXXX? back through gross impact low that data, essentially what be run the and would XXs million from know -- you in gross $XX for out us we still I'm be impact trying But mid- the So the to to the without gave some product I

Sylvia Cheung

starting and can gross be the acquisition. without the that items in to expected I with out on business the the different is margin We're is share line why What position the to reason a the the break low P&L product the not acquisition-related and to expected in We noncash do the range product estimated previous gross product historical the we'll margin the XX% acquisition-related, historical back margin. be XX% achievement to due comparing adjustment. noncash gross that -- expect of to is level XXXX,

Joseph Munda

Okay.

it? margin than there's about is there acquisition-related is So that way that other -- nothing gross in driving the down? to Just charges the else think

Sylvia Cheung

Yes.

are I The think as about. is number item spoke a you one that there the noncash I know. largest of,

talked for businesses lower gross we gross investor margin slightly prior about consolidated Anika's call, the historical product had acquired margin. the X the On than product are

but factor. is And margin, factor, one by know, impacted as gross pricing. is that smaller So a directly it's also you product

to the related is it's I a of main to acquisitions. each Arthrosurface charges on So we The be in the this the Parcus product for due low XX% points. is -- call, don't into these get and to the gross key appropriate onetime takeaway range think margin detailed to driver on noncash discussion

Joseph Munda

non-GAAP And adjusted then just EBITDA regarding the one to the And prior or you $XX more comments talking on you're $XX In on having looking your Okay. them here. EBITDA back for an businesses a then Can 'XX bouncing profitable impact impact to us what then that in 'XX the in expectation? EBITDA sense and the of were million. weighing in as and being the about result. million give you acquisition, some from 'XX, is combined

Sylvia Cheung

or and standpoint the individual EBITDA in and as accretive in you have business X place achieve have the for provide the the share EBITDA business on positive our plans goal, is positive to the into expectation those, -- our consolidated net I is net income to on starting entities. is and are our not a pathway XXXX. we to can brick policy acquired us What Yes, income as businesses, with guidance non-GAAP well and

Operator

from line We have Mike a Barrington follow-up question with Research. the of Petusky

Michael Petusky

Yes.

So go the Or Sylvia, just, to forward? in about, you integration we sort all guys post of of tax back effective more for it effective explain And a guess, is new rate? this talk we sort rate, then are normal mid-XXs move and could looks of as 'XX. the I do that like you like tax expecting on the that mid-XXs range

Sylvia Cheung

acquisition can effective expectation on of accounting, a at number looking each Obviously, purchase as is a you entities, X there's range. amount tax rate the current including positions for do individuals. on mid- high the in XX% The to work X the price Yes. fronts, tax of of after of new to fair the imagine, the

as within So X there estimates. acquisitions quarters. is and based look looking the future earnings work and as have you at all and The any closed this information just we'll that this we're to information that we'll in and material actuals estimates. a throughout providing best recently our call the on, release looking businesses have. information lot and update well in we we investor We've terms lot year, know, of put done weeks. additional updates on to And are as a on of last the our few the be report best differences provided of provide And detailed in work on currently focusing that set of together the

Michael Petusky

Okay. Sylvia, so -- okay.

essentially for the estimated $X.X Page income XX%. you So Obviously, tax release $X is Are in lower this end possible net is is the at now for it's of misunderstanding, point? which I'm looking million at your provision the the estimate you am same this saying income say just release? that's high million. very what's of I of where Or And X on that range. than

Sylvia Cheung

Yes.

X -- income the to looking Page release, if that provision you're should estimated I tax, XX%. there on high at earnings for the of think mid-XX% equate to about

Michael Petusky

-- sorry. I I'm against on Okay. see. pretax. It's

hours working -- XX already today. I've Sorry, been

Sorry.

Operator

closing the further this Cheryl questions in call to back I'm like turn remarks. showing time. at I'd queue no to Blanchard for

Cheryl Blanchard

and our you deliver time look strategic we as your Thank a initiatives. to continue you, you have progress great today. updating to evening. Thank for toward forward We

Operator

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

You disconnect. may now

Anika Therapeutics (ANIK) 20 Feb 202019 Q4 Earnings call transcript