SMED - Earnings call transcript Q4 2019

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

Operator

Greetings, and welcome to the Sharps Compliance Fourth Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Bill McKeown, with IMS Investor Relations. you. Thank

begin. now may You

Bill McKeown

morning, and fiscal Compliance quarter the welcome earnings call. to XXXX Sharps fourth Good

On our today, Diana following financials. President will growth and will President the strategies, the we Chief their review Chief call Tusa, call and questions will performance, take Executive formal we the have while company's remarks, Officer; operations Officer. Diana Immediately and Financial P. participants. business Vice P. Diaz, from David David and company's the review

factors forward-looking statements some as uncertainties, in our release, are make at during or future Securities may be the portion results that and to differ we our documents aware, materially risks in as you're and which presentation statements can site the factors from other company of could These formal outlined as As Exchange earnings and are events, where with as well found by to Web subject this apply today. we the filed These cause the sec.gov. session well question-and-answer actual Commission. in teleconference. These at are to

me that, go turn ahead. call David to over let begin discussion. the with So, David, to review and the

David Tusa

customer This and sequential XXXX and fiscal a a margins and our welcome everyone, drove morning quarter fiscal billings profitability. revenue quarter, as closed on fourth fourth strong increased both growth and basis. growth year Okay. and our year strong improved you, earnings Thank in We good call. with year-over-year conference to out revenue XXXX gross by evidenced

which pickup; management three, also three management quarter growth, about two, waste really perspective, a is strong primary are, being services. and what's route-based management medical in but waste our mailback; reflected from medication fourth one, medical all unused exciting revenue streams, Now, revenue this

should these all drive unused our growth offerings billings value and believe net rates. And was medication In for medical we the success growth XX%, route-based, the business XX% from and The quarter, shareholders mailback, grew markets quarter growth primary These a long many customer respectively. are organic. in XX%, transforming medical over and sustained term. waste the solution growth waste broad fourth the Further, our serving we retail to to value a strategy healthcare added provider business the fourth of customers reflects and mailback range of with service offerings. medical only waste comprehensive solutions a believe solid the

strong by the more retail a the for So, manufacture year. MedSafe the as Pharmaceutical quarterly and market by This as higher well XX%, prior tripled support patient to on increase existing retail compared increased fourth four the was in in by bit customer customer billings four flu-related market quarter program. almost market, revenue and this was billings driven inventory orders driven pharmacies. new builds

for in at this year And we the billings As of the billings we we last this in with expect that the market. strong earnings mentioned billings fiscal $X.X $X call, full-year ended of and fourth And $X.X market million XXXX to range fall million. million our on ended the up $X.X million. quarter

a few more a presence ago. to to predictable we offering our and our years complement surgery stream. route-based such the facilities mailback medical to consolidated know, larger waste did you As We revenue expanding establish as management center began this address

XX,XXX in XXXX, increase XX,XXX offering, serviced operating XX, XX% customer XX, which an June locations On currently is states with XX June customer XXXX, we year-over-year. route-based of to directly our which at locations compares

or the population. reaching infrastructure Our of the XX% current route-based about has capability of the capacity

the 'XX $X.X generated increase revenue we place route-based million. of acquired $X.X fiscal of million. year this in from perspective, $X business of the an over And this to So was million revenue

doubled than So the we business. more therefore,

quarter EBITDA share profitability, the company per the in loss the million year. of $XXX,XXX $X fourth for share quarter Regarding versus was a a Fourth versus $X.XX delivered fourth quarter prior per the in $X.XX year. prior

Now We mailback pickup, route-based continue or we share management We include grow us structure to and our very unused a in in combination as We customer our service well in our quantity believe capability of the to of needs we patient offerings meet generator to are medication are an positions market the unique this do leader business. to both. year segment. the fiscal effective in our believe XXXX, service the model. strategy cost-efficient to diverse the kickoff we dispensed small- we best to-medium believe

as continue unused of of in Recovery for accounts Envelopes. medication part to quarter. Medication and our XX% solutions TakeAway the This business demand now billings we such, fourth our see System for the the And including strong MedSafe overall

of XX, returned over base XXXXX of liners XXXX, As retail XXXX long-term customers well an organically care grown treatment, installed enforcement our this and as in business receptacles law June facilities. hospital have to June drug XXXX. collection pharmacies, And we XX, as have as

XXXX Now of base liners XX,XXX. and as return of are the is today, collection receptacles installed

were of and epidemic our strong solutions, prescription our continued drug collection proud in X,XXX and ago. a liners ago and the units receptacles leadership June growth accidental medication a we're of years company see a in we position, management XXXX. poisonings. XX, 'XX, X,XXX role for installed solving XX and abuse As U.S. playing June the and through inner unused the two through point, year units XX,XXX Returned X,XXX were reference see We of

customers sales in Linda healthcare or correspondingly and sales significant last field exceeding to us, has managers, customer leader -- territory company related and a services meeting development, we to of accelerating Like with growing team account the sales managers, and at two business extensive results see new includes in industry. the professionals. and leading team's mentioned currently, the our she her Vice existing sales nine field sees six focus for including which March end She add the efforts. next seasoned company's Sales. closing or of As budgets the a the the base of is from and greatly over December may as revenue, experience of with XXXX, Linda increased begin national XXXX as sales expand team, we headcount is joined to President on our a sales managing quarter, the Linda pipeline. Brock and quarter opportunity opportunity XX,

XXXX, should in to our offerings looking the quarter So of the fiscal September shaping of see full XXXX forward fiscal quarter, we year all strong, our XXXX XXXX in first believe and as growth fiscal markets. up year solution benefit many from year

driven on being These we markets customer only that vastly leading in where our a our only responsible are regional is company's believe the focus service, are from our but pricing fair successful for to by growth underserved. also growth. Our solutions and greatly contract provider, business transformation mailback not differentiators comprehensive terms, revenue are

Diana, cover And detail. the and with financials bit more it I'll a to in that, turn she'll over

Diana Diaz

year, you, fourth Fourth million last Thank quarter $X.X of of to by compared in XXXX. revenue also quarter quarter XX% fiscal increased David. fiscal to XXXX the third to sequentially compared increased as XX% million, and $XX.X the

Our the XX% year revenue route-based of million fiscal XX%, of of is the pickup quarter, in contributed the quarter at for million total XXXX quarter. $X.X prior and compared for fourth revenue to $X

quarter, year revenue of quarter, the the and $X.X GAAP quarter. to for as our of the to is XX% compared $X.X mailback Our year adjustment. contributed in unused of compared prior And total the quarter the million million medication $X.X for total million prior at which are billings finally, in revenue $X.X contributed net XX% XX%, XX% revenue of up million the

manage fourth to quarter. expense Gross the prior of increased while of we million continued compared our of fourth strategic quarter in making the investments year margin growth we're the to increase last related improved in a sales of of gross to SG&A compared the year SG&A and quarter $X.X to XX% to well that same XX% XXXX, profitability of year. in decreased revenue the as XX% but to to marketing. our or compared to driving is $X.X XX% quarter We're controllable fourth continue SG&A to costs, facilitate margin in for fiscal marketing investments in ensure revenue in and prior SG&A positioned focused revenue. long-term million, quarter also sales The and on to closely

EBITDA quarter the basic a $XXX,XXX of of EBITDA of operating of XXXX, compared We $X.XX reported the recorded a of or in last We $XXX,XXX fiscal year. in quarter loss of operating XXXX, of of the to loss as compared or share of share this fourth the in We to of a year. and in same of loss fourth last year. $XXX,XXX net diluted per $X.X fourth quarter an fiscal in income income $XXX,XXX to quarter the $X fourth per recorded net $XXX,XXX last period compared quarter, million

Home retail million, billings billings $X.X of quarter $X.X market increased as manufacturer current billings million, government key last $X.X related to compared to for increased patient professional billing pharmaceutical $X.X to billings XX% four comparisons fourth Now billings healthcare looking X% and new were at support with year. XXX% bills and fiscal million increased $XXX,XXX; XX% programs. XXXX, for inventory to XX% the million to four increased primarily to

customer XXXX, mailback with our and year; percent represented the our and XX% medications route-based billings, And prior XX% solutions customer represented the During the pickup year. our customer of fourth quarter of prior XX% and of of billings, XX% increased billings. unused fiscal over XX% increased over grew XX%

and and will the a billings we primarily from quarter government medication greater number medication in unused as billings major the the we XXXX due including targets program. began the increase rollout compared this calendar growth billings channel of is XXXX market, in The sales fiscal in year. with of related units fourth of our of the in primarily XXXX. which Inside segment specific continue unused and launch XXXX, achieved last to to in of professional to than program bills, ongoing higher The XX% install online MedSafe,

primarily increased Now $XX.X retail Professional million full-year Revenue XX% billings increase for of to a XXXX. increased flu XX% key XXXX million. The increase let's to orders, to in million. an $XX.X MedSafe increase $XX look increased billing. billings and fiscal increased the million, to to for billings is due XX% of $XXX,XXX XX% retail customer at in billings and market shot-related $X.X comparisons fiscal the million $XX.X

decreased Manufacturer to X% billings Pharmaceutical $X.X million.

healthcare due new inventory decreased $X.X program last Home during did year there pharma larger to billings XXXX million. their X% launched bills in significant fiscal significant in were XXXX, which for reoccur not Although size. there were programs to fiscal

Assisted living $X.X XX% year with million. fiscal billings government were at billings prior and $X.X consistent million, increased to the

customer For XXXX, over flu orders. the of XX% represented primarily driven fiscal mailback and increased solutions year, strong of our by shot-related full the XX% year billings prior

achieved channel same XX% billings in customer of year. year. and XXXX XX% the route-based grew our pickup our prior fiscal of period, an over finally, XX% up customer compared grew The billings online and And the to the last XX% made prior unused inside and was in For sales growth billings XX% year. medication over

and year-to-date Our increased improvement is for XXXX. gross fiscal gross XX%. to a margin compared year $X.X fiscal of and the $XXX,XXX $XX million net the XX%, fiscal of net loss loss over X.X% basic or $X.X to the expense which or in an income for the was achieved And in a Company per XXXX XXXX. basic of diluted fiscal per margin diluted SG&A $XXX,XXX year share XXXX share of

sheet solid fiscal the capital with million. the working cash year end $X.X million balance Our at of remains of $XX.X of and

I'll David. back that, over with turn to And the call

David Tusa

I questions, the Q&A Operator, think Diana. Thanks, session. for for ready we're

Operator

Please Our line proceed Thank Capital. comes from you. first of question [Operator question. ROTH the Sweeney Gerry with your Instructions] with

Gerry Sweeney

call. my taking for thanks morning, Good

David Tusa

Good morning, Gerry.

Gerry Sweeney

Just from normal sort hitting talk people, months additions to since couple like a initiatives. them little on a a time of the Linda it sales a want few focused been It's wanted clarity that? there, curious ramp sounded any sales what sales, markets, there sales bit you're questions specific of and and these sales but hiring was stride and if salesperson to that front, little about adding the their of are up on sort -- on just getting get and to

David Tusa

salesperson, focus on in think new we're the she or ramp sales Good, is personnel seen territory we in very where the in last doing first, that we'd what the opportunity different past what majority that for have that ones territories one put of in significant the as we The States, Well, as and growth. they United managers, questions. a a far good place the mailback it on upon if three six may can can't be unused months the be they but closer their We before to totally they're as up, industry when or months have it to as pickup experience, the much the they're in it depending six experience medication. healthcare saw it's services that or ramped and three up, offerings be solution months, selling. three

out well-trained, make base, So, push. market, to make the they the they make get and we the offerings and to understand want and before sure solution and customer we they're big want sure the there

Gerry Sweeney

sales, sounds sounds territory it. Got around little additional maybe adding sort similar then going near-term, the a on like to the scaffolding it new also bit sales would but hires under of hires there like of be guys almost it sales or be And lack could the and like or word would hires you're managers phrase of side, sounds for the type like these this adding obviously, forward, managers, a be it backfilling, territory managers territory better opportunity? in

David Tusa

those regardless as development, focused as It And probably of this as on would by and in traditional where managers, much year. the more where on add right of against, of sales end they're sectors, probably are as add well now, another be probably both few we one territory; business have they're will territory a a persons not we well, focused the they country.

Gerry Sweeney

said to number true some sure liners quick of and indication, from safe. to increasing seven then, more and over out appears eight the used great liners And MedSafe, to per a think like the and out but year obviously, at be that rollout, math, but look it. I in switching a you've more that used I nine past in being it did a field, quarter calendar gears to seems units not something as is to this I'm terms XX.X% per it nine-and-a-half. there in Got sequentially of like up, MedSafe

in the going? or Just feedback how their partners you're space, rollout from may that know, curious be program you getting any of your feedback on some -- upping view if how is of their

David Tusa

medication numbers pretty still in there actually has accurate, it's out your unused is, increasing, patient a spent no, -- business remember, Well, the relatively you and for what's and they're happening the think country. pharmaceutical are new I

personnel with becomes receptacles the and collection are of like training whatever, a is more so, in it pharmacy collection use the of And it's awareness the with to the it MedSafe or unused the also think more becomes and retail education, the helping available whether of medications. I country the improve that

and you bit the in a to starting in drugs, tell of I I to yesterday, something, is misuse a think of not, we're seen a something -- and that lot reduction hands prevention. it of I also may bit, critical the out keeping we're will has to or to folks of a medications organization prevention of that saw lot see prescription a with which and government we're do education, the this, things, component. is starting monitors overdoses, a of see three related And part it SAMSA or of otherwise of the treatment, just who a use prevention deaths disposal, of as believe the prevention,

medications. the So, these around ways more convenient aware dispose just ways everyone and in making there more and awareness, and are proper to that country

help as lines increase that'll returns think well. to I those of

Gerry Sweeney

it. Got

it. I That's I'll from me. jump and line, it appreciate in back Okay.

David Tusa

Gerry. Okay, great. Thanks,

Operator

comes Please your of question. Munda Our question Analysis. proceed Joe the line with First next from from

Joe Munda

morning, hear Can Good Diana. and me David you okay?

David Tusa

Joe? are you We can. doing, How

Joe Munda

that guess, XXXX? a continue is a curious their customer, Good. that benefit quarter, prepared How in are hop medication then Diana just program other into then a customer growth. you? to remarks you're I'll of talking and have follow-up. mentioned with from evidenced, are couple rollout, really Where about customer out as things, So, I in should and we, from I'm back, and and I strong 'XX, looking categories growth, your the unused going cycle to strong the

David Tusa

pharmacy, projections I'll many mentioned, they're the The and tell Diana going successful customers program very had is the and that of one we pleased. but can't that nice conjecture, we're well, one of they're we program, retail or a make and pleased ours. large Well, you really just

think we continue rollout. to real have a opportunity I the

Joe Munda

quarter? the growth in Okay. Is sense any contributed to it possible to what possibly the they get of

David Tusa

omit retail of for in think to XX% market about fiscal medication, the the at… look year, on talk better about more the terms 'XX, probably for about growth we They the year Joe, XX%, the the on market, [ph] contributed medications fiscal that for probably I way retail unused they year, year for when the unused it's

Diana Diaz

retail the For market.

David Tusa

-- retail right. for market, the

Joe Munda

growth the -- the in or market, in sorry, the retail… sorry, -- retail the of in XX% I'm I'm

Diana Diaz

being for The XX% MedSafe that and growth $XXX,XXX the it year, was was quarter. of sorry, for I'm the that,

Joe Munda

Okay.

So they contributed XX% the for for the quarter, year? or

David Tusa

For the year.

Joe Munda

Okay.

Diana Diaz

and quarter. the Both year the

Joe Munda

it's you how okay. question the out how you quarter, solution I'm Both that if on other outlook the came well is, are your curious, maybe could little just rolling there? David, a opportunity on and recent my with as out, drug your detail plan and new year you that 'XX, give then, bit a into hazardous to fairly as offering, us Thanks. does for the thoughts play more And

David Tusa

two There's Haz, opportunities mentioned because we question. this before, starting to hazardous permit two trucks. business, actually don't There's we our space increased we're on of an the grow industry opportunities on

up waste Haz that's at that's we quite pick medical and a So doing growing, time actually picking the well. And same up can we're facility. at

talking think Kit by thing the a out, we're I Spill Haz required facilities to about rule being sell have are USP those. starting year that you're kits, is it's and solution something towards should And pick we at I end it's think that good that. which and really see to response as mailback, and a we up we're from in that standpoint, see but the -- that the we change, Haz talking -- second again a regulatory chemo the driven healthcare of required get lights where about and primarily came the that's you're to spill calendar should closer that's

Joe Munda

up you as said the do be that trucks? I well, as And line, mean permit something you maybe that offered that would the down pick is in Okay. or

David Tusa

mailback the pick our large related [indiscernible] is that of to more is up we in the haz provider. to really do to as up that -- pick for our have area. the some one, the pick spill as other do the pick area, up large with picking I And that another was work we'll If waste, boxes up, up So, we up kit well. trucks box, We'll wrong, facilities. then service pick at service medical the waste, individual we it's

Joe Munda

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

Operator

with with proceed Artko of comes question Rabover your from Peter next Our Please the question. Capital. line

Peter Rabover

Hey, David. Congratulations the on Hey. quarter.

just the -- beginning. something sure fourth say want is your you sustainable in Did make you run in you something I sales I to is of that the future? said quarter caught So XX% that think rate in

David Tusa

revenue strong what what roughly $XX quarter. I revenue is in which the Yes, the fiscal really quarter, the September -- level the strong, That's all really said June we our I this was quarter as be think strong. we and be first can quarter XXXX in while also said, quarter, mean, first to million. the similar about said talked see only year I could we're level we that September

Peter Rabover

Okay.

and business I your that's like just a two quarter had enough, your of I really parts maybe with pharmaceutical of fourth then more volatile good and the that. sounds fair it the mean, them. Now, and flu medication think on revenues are the you

more we level? is would lines? sustainable Or you those revenue So say volatility is there around expect that a should

David Tusa

tell there's like that is factors predicting don't but a And even year even into -- few stopped I it years strong the was stronger flu and flu know and couple season. because last you, flu year never just so business looks ago just come pointing I you many being you will this it season. a of play,

that's and by pharmaceutical fourth manufacturer programs, launched because new pleased four probably and programs. the we Now, were new quarter, we on driven a side, in programs

because are custom they of front ship orders systems throughout so, really our these bulk large order And where and we year. that them more up the

more think manufacturers. programs that patients was and land for So by driven be going to I really with ability our to pharmaceutical more

Peter Rabover

good obviously revenue XX-XX%ish XX% side, a -- quarter nice forward growth, and about kind flow the had, cost maybe a a like going through that this was through? EBITDA Okay. margin, And about of rate to you a then run you had flow does additional the for on XX

David Tusa

Well, the revenue, at look way we incremental is way the incremental, -- look gross we it margin.

So will roughly. look at Diana,

Diana Diaz

Right.

David Tusa

on We in they had particular this sales quarter, in expenses always incremental XXX,XXX, to about And strong. well XXX,XXX in that was the -- probably had revenue. the XX% margin not of We've June were the about it cost XXX,XXX roughly, gross budgeted. quarter or

actually been margins the would So a have higher. bit little

Peter Rabover

Okay.

the that's more And about Now run in side the is SG&A are XX, the then forward? good Is rate XX.X. investments line? it's; great. on you run to Or SG&A is going rate think, think a expecting that I

Diana Diaz

SG&A quarterly expect to in each $X.X to range for We be quarter. million a million $X.X

Peter Rabover

to then, And Okay. guess, That's put an not I think I maybe awkward in you great. spot. you

And of you best the that But the know, just not started the that's answer talk and you're that. some -- would do to need in MedSafe you're you. mover there, to flywheel business advantage, the on that first the it's will I give competitors you you know effect a, So put can landscape anything is as try as still to you've appreciate or maybe color you market, that accept that what about more see can. that, it. more people I kind in you seeing out

David Tusa

great Now, Yes. that's question. a

mover one really I fact And in while, some this of it's both was we've those. very, key ability won advantage that the that been the think we have doing I only that the a recent I beneficial won think to very deals. first state our landed think for fact a we've land helps while we that while deals, But us. so this the we why been to not is of for factors business, doing

of for going from -- I foreseeable is standpoint and be, percentage the particular probably medication with the to bullish the lead offering standpoint, offering are growth know, a at charge end-used I think least on that offerings, market end-used the the you think future. percentage lead We medication, three the growth solution

Peter Rabover

coming to those competitive things King one driving a each and is is like a actually different revenues drive more like, in to revenues need and Burger that retail, -- this realize you makes a market of competitors way, sense or actually But to makes the where both they it forward, landscape, then right I have that where other and they maybe a mean, in think? the in is the dynamic, other and just off do next each should like McDonald's highway on there Okay.

David Tusa

I'm don't quite sorry, I understand.

Peter Rabover

that, guys competition is MedSafe that. the in introduces nascent have offering, and the customers the are kind you especially deal so how in you with stage I'm sometimes out So, competition what to more some at, where the healthy it of That's product in just trying figure to you -- business

David Tusa

that looking when controlled as that are and with there on substances. look player so especially potential that opportunity. medications, at collection dominant still few leader we of are these in bit we're I see a it companies it got think you're is a in clear the out receptacles the I I business mean, you I the receptacles, collection a what and differently. the dealing liner couple

not the really be important experience I there. to experience what's so have, it's better that receptacle think you going it is I that's a chance is collection think to that our and out probably you

while. advantage our that and like more more So quite the been this doing as don't I that we've think and it mover first position. a like everyone I create way helps awareness. you this described And these, our like it's sees I position. fact I of a doing

Operator

with line question Please from question. comes Steinke your Barrington Kevin the from Research. Our of next proceed

Kevin Steinke

morning. good Hi,

a your strong a for drive September quarter, quarter? on could bit just revenue Just dig expect you in strong factors more of discussion following September the that the the into to outlook that you maybe little up

David Tusa

thing. was prior June million year about The September about quarter years the the same and prior $XX quarter Sure.

business June continue so a are June the that the think the And guarantee quarter quarter. quarter will business again, like the in revenue year. drive things I think kind not in the to of the of we I for think a in a the lot I it opportunity opportunity have is September to the XX, the look prior September three but driving quarter,

So many other solution I think markets they'll see for many other offerings. and same same contribution

Kevin Steinke

the pipeline maybe sounds upcoming that absent how like the is to coming in more the 'XX that you references flattish see support know just are outlook patient what's what one is the trying fiscal developing, or rollouts like that get program there in And to it Okay. market, new pharmaceutical any the year? we and maybe is sense I'm do you mark of year a for

David Tusa

think without that programs, it can XX% higher be it I X% have the add XXXX year in or any significant really opportunity increase any new the more if it that programs adding we would to too, maybe we without programs, this but significant for in number.

Kevin Steinke

helpful. That's Okay. penetration Yes, MedSafe you in for market. on about living talked care David, opportunities I think the call, assisted last the long-term

ignite opportunity picking there? growth that can some maybe in talk you MedSafe might about So the see area. that Do you that opportunities up in long-term more market care

David Tusa

a where is allocating she's and significant care She of year that long-term one towards Linda that is actually in has market that long-term lot focused. the experience and do care market. We resources

so we should we pickup we'll it few So of do have the couple next have in can market, quarters. couple quarters, market, next we're the in we long-term hopeful sales think MedSafe can I watch of over that over see the to care have that opportunity that to a that. But

Kevin Steinke

Okay. use And any update on single TakeAway Recycle medical the devices? for System

David Tusa

Right. about still that. optimistic cautiously We're

But to a year that. again, impacted so this optimistic think of cautiously call. and healthcare and number as large kind need country positively I We end pilots facilities, you'll would at I readily quarter on the various would we're see the once think to to make of I call, going you'll I think around calendar recognize related see on you have December last the the we said, of a you

well-received the two more Recycle up of I from on Linda quarters, think area a focused couple a the regulatory we'll we a have I've get of this lot and quarter -- different the for including is or another where next as we about tell $X.X But audiences. but healthcare million is ago, do folks we we year TakeAway in to it's December this. the got receive it's program inquiries, scheduled signed our over you, on again, do we and -- work with facilities

in So in healthcare sure a bit actually right. new and something They're they're things to patients, when you just a time you're and do want takes it takes when little treating healthcare, introducing it change make doing because time it's healthcare. more

Kevin Steinke

market last what me, question in you from is other And an Okay. categorize growth there strong unusually the as segment.

Just that perhaps color XXXX? drove in on any what fiscal

Diana Diaz

other markets? in it Is

Kevin Steinke

Yes, the grew categorized and that market you by and give Other, one is XX%. billings as

Diana Diaz

Right.

it's mean So it $XXX,XXX. really the small I that was more -- dollars. it's

David Tusa

-- sell We

Diana Diaz

containers [Indiscernible]

David Tusa

poles, other boxes sell assets, smaller IV number $XXX,XXX. solution a is containers offerings. we is it it XX%, And and only, while Sometimes of

Diana Diaz

And commercial. category market in though, the it's

some seeing are and with in interest mounts restrooms management, building that being we've companies included from and So wall such.

So it of that's part some there.

Kevin Steinke

fair enough. for the questions. taking Thanks Okay,

Operator

question of Stifel. proceed next your comes with Please line with question. from the Michael Hoffman Our

Michael Hoffman

and you haz Are you of form internalize once disposal? on able use med for questions. David, collected taking the actually Thank your you to that do side, the disposal disposal medication? unused the the med or what's you've outside

David Tusa

able medications treat the an medication, on via unused unused incinerator, we're have Well, to our incineration. so we

to the haz, haz treat haz. the we third-parties the true business, On use

Michael Hoffman

you - you specific for then or describe it? characterize defining and you like? what the for very You're if And would in Okay. that of made qualifying us looks target how your a point market;

David Tusa

-- What Sure.

Michael Hoffman

specific. In very your were you prepared remarks,

David Tusa

was straightforward easy. it's was mailbacks. think and a better, for and it to an out, changed to easy the was just was pretty Company dramatically. was pretty the changed I a We be Right. changed point - it and really story, only story. important mailback It It story used we

resources those driving larger on are a could focused long-term of groups pickup, there's really it's There's what grow three XX%. is We're larger three. in And each to saying on. we're then medication revenue think much-much what point revenue route-based also I'm to unused streams allocated. in of and the three growth three primary And one much-much help we what management. So and provide growth is think are majority This where I not those XX% And the the revenue Company. the streams. that's XX% is and to those all the mailback, there's those of important streams the Company us the focused that

Michael Hoffman

Okay.

question my asked I maybe poorly. So

the those of So lines are business.

remarks, three a three like sized, that's with of out this there. target market does market about opening distinction lines. you? you business your when point from made unique that a you markets those it unique drawing the for a For just made population? it Is What look we distinction curious of away is lines I'm age that that business of certain a MSA

David Tusa

if I pharmaceutical that Well, vet, look whether it's what think clinic, selling are actually fluid can care and at through we're ones we patients long-term do dentist, where three we're where tell retail Well, markets four care. that solutions, we have If quantity underserved, market. doctor, it's it's advantage we the long will medium whether it's whether we you this. offerings long-term the and or providing or the home an serving is solution But care, good term we're the different manufacturer into a sell sales. or at small or really we

and where one market that want to where can we is So a think growth. underserved, we going that sale, some close to drive we significant where focus on we're think we

Michael Hoffman

Last the were growth is those Are me, in three the at as of profit? this is you that where on we quarters critical point where but pace lines? you fascinating this opposed lumpiness in three profitable now we three so there's have lines, the ourselves, core in honest at be gets billed profitability, mass four always made question to mass have row can business critical being you a Okay. that and incremental future if transition, which do these been of so with this you lumpiness from our are

David Tusa

I won't business. happening predictable provides a it liner and revenue, quarterly I bit recurring think you or up closer. the a waste business, schedule. with usually the or unused in and that the monthly you unused the that a whether medication see on it's what's With more tell route-based business for getting medical we're pick

be is this will I those more tell revenue better us doing able we're you seeing more for So growth of more view markets. to recurring to the And what upon us based get business. a is rate in the revenue - it's us and allowing allowing visibility

only we're profitability, my better we're a fair question view can to where have I that's not quarterly And point than getting but with getting think where Michael. closer, the can And better. in I So better where a closer we we and forecast it's see I able on work sure such, it that to to with as Linda sales going people. we'll will think have to visibility visibility is you business able being tell to and where better. the allow be manage And additional the growth, in helpful bringing

to that to revenue more we would the you forward. there revenues able have have you didn't when be support done want visibility we going And it. see if of the know You that do to that

Michael Hoffman

you very Fair enough. much. Thank

David Tusa

All right. Michael. Thanks,

Operator

line Our next your Munda Joe Please from a is First Analysis. question question proceed with with questions. the of follow-up

Joe Munda

and follow-up Dave Yes. Hey, I may. once one Diana, if just quick

of XX You pickups talked sites, states. XX,XXX about coverage

those involve how or now? is, have place my relative you the you So you many Thanks. idea existing sites network trucks? are then geographically, part to XX is, in potentially more of leverage do guys how coverage Do part that the states? to question in in And are are on states play any increasing mean, so XX that have M&A I penetrated possible covering adding thought first second the what and if ability would have by you those the

David Tusa

Right.

a quantity rate. to low the we're XXX,XXX shows is market in And market. think served there's be I Now way different at very that that data Joe, still individual medium I that to we instance, that, at could that for country facilities, penetration small facilities think this in have look

focus for we and rate. So we we excited marketing or every drive a we're why again, markets. have. obviously that's XX,XXX because And those that's opportunity have so penetrate to opportunity, the a very on particular day But grow at about revenue like further us, we're a that penetrate and what low for still in great XX,XXX

to expanding acquisition. there's As do - couple ways far infrastructure, a through as of is, the it. it's through yes, one potentially And

heavy the direct the south. we in southeast, Midwest And northeast, don't the have presence a presence coast. west have and a in We

that can a go do in prices those areas see we on ability ways and would out there's infrastructure. to our that it being more something at benefits it's continue hope stock little we there, if like currently get of bit to the through where at because we if haulers the And a and higher looking do. stock of our we us of to coverage that look the primarily and to able you we that companies and we're acquisition through So acquisition, to one focus sever. to something We'd expand we of also give that want that's expand in - don't another and

it's we we ultimately at and something it's something that do. to think that So we look have

Joe Munda

Okay, thank you.

David Tusa

Thanks, Joe.

Operator

all to back That's the have time for hand closing comments. for we the call like questions. I'd to Management,

Bill McKeown

participating appreciate for the Thank next be quarter. will it Thanks. we everyone We to you call. talking you and in

Operator

for conclude Ladies and today's teleconference. Thank this does you gentlemen, participation. your

disconnect your time, have and lines day. this a may wonderful at You

Sharps Compliance (SMED) 21 Aug 192019 Q4 Earnings call transcript