BioStem (BSEM) 1 Apr 242023 Q4 Earnings call transcript

Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the BioStem Technologies Fourth Quarter and Annual 2023 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions] And I will now turn the conference over to Jeff Ramson, CEO of PCG Advisory Inc.

begin. may You

Jason and to everyone, financial for our Fortunato, today joining and also Officer. Good by joined BioStem's thank fourth call Mike is call the discuss highlights. Financial XXXX Chief quarter conference Executive corporate We're Officer. afternoon, Chief Leading you Matuszewski, and results annual

uncertainties forward-looking actual which like the current on filings to I'd begin, that involve we market. from including based risks remind everyone those cause the the our with the uncertainties of statements management, that remarks differ materially Before risks over-the-counter to company's today results described inherent and may could contain indicated, expectations in and

cautioned future. statements, change and are on may to only reliance any date undue any which in time made You at forward-looking the place as not any speak of the

securities otherwise, it of accepted do voluntarily applicable not undertakes as commitment with financial these will accordance to non-GAAP time, from statements, information, to references GAAP. or in calculated to that include generally new a financial as also future as no time whether may measures principles, generally Although certain forward-looking refer or are or required measures. revise by except We to This accounting update result the company so laws. call events

website. Reconciliations and release press on of most presented that, the are Jason call Matuszewski. those calculated now in non-GAAP portion over I'm turn the earnings the the BioStem's financial comparable in of GAAP measures With measures pleased to to Relations available accordance to with Investor

and financial in represent The that quarterly significant operational figures, for our to everyone, by exciting Good us. Jeff. you QX the BioStem performance XXXX XXXX, I'm achievements. an and year an announce afternoon, remarkable commercial, marked you, had for achieved Thank was milestones significant outstanding revenue company. including joining in QX, thank pleased and

high couldn't which dedication every be and on our revenue testament hard consistently I year, is year-over-year to team. individual contributions, enabled operate their increases, the which During of such work we us a level. a prouder delivered of to the at

beginning company as a This aim securing tech of our clear: efforts the key At profitable partnerships to licenses med 'XX, forging was industry. and and the technology success. our development, product product strategic in and in leader required to growth-oriented position drive intensive the

Looking it back that I we've think at in a only the a just our company, begun ahead believe foundation have into results confidence in pivotal be on numerous will for I tap XXXX, we as for upon I seen can which talented the year build individuals to to and of come. strong full team us. years our opportunities

with there's pleased still we're we strive we're to to be achieve 'XX, as objectives. that made aware While also done in we strategic work much progress our the

and dive for year the XXXX. quarter let's of of accomplishments standout the into the Now some full

sales our an QX, X,XXX%, at million, net achievement. In reaching impressive $XX.X grew a significant

For over closed sales year, XXX% marking year. $XX.X at million, robust the the entire previous a increase

in gross We also quarter. in improvement notable profit the reached saw which an XX% impressive margin, a

year. full quarter the of the the a slow in Our breakeven very amounted adjusted quarters start representing to X million, sales was the It for XX% fourth $X.X for of near year. EBITDA after first

tech the business enhanced our private balance successful to steadfast these and believe significant Our compared that a the previous year, innovation to med achievements made of into launch We with Through throughout growth 'XX the industry. with strategic office momentum setting. demonstrate year. entered driving within enhancements commercial persisted AmnioWrapX we our sheet the commitment to sustained the

strategic the building sectors. in quarter, brand gain awareness. fourth to in is multiple the presence the focus focus by markets surgical wound core offerings market and geographical awareness and expanding growth product In resulted Our our across and

to the continuing the in centers, the by key key in in outpatient is and to further In of surged expand factors. strategic beginning and objectives. setting, the of our outpatient by introduction hospital sales driven driven which our initiated one office by we're fourth private team X QX clinical affairs XX%, our medical invest centers actively of hospital primarily penetrate quarter research the sales We VENDAJE

First, the private the into market. wound our AmnioWrapX, launch of tailored care portfolio for latest solutions advanced the addition office

launch offers chronic AmnioWrapX method, Novitas in and organic market-leading an given types by of layer product the And of X, AmnioWrapX remain First our second, publication starting wounds. pricing MACs, been committed we [indiscernible] configuration Coast. about thick via development a We're WPS, various and and Since BioRetain treatment technology. tri-layer then, coverage January amnion, really BioRetain to XXXX. for the of processed AmnioWrapX innovation ideal it the intermediate option excited chorion has making our the for with of national AmnioWrapX,

these for turn growth results. milestones review view as to our call me to With Mike the We strategy. the let over essential future the XXXX financials QX that, Mike? and of

product fourth move $XX.X the million of as the The Jason profit net to first X,XXX% $XX the quarter-over-quarter then Gross revenue year-over-year. XXXX million in for the X,XXX% of million to will was earlier. versus the driven in quarter. year quarter increase I or $XXX,XXX AmnioWrapX $XX.X and quarter by by quarter from or in by increased in and year for million in the certain highlights the Thank Net revenue launch MAC the discuss prior prior the publishing primarily fourth of results of discussed to on $XX.X $XXX,XXX XXXX the increased you, in in fourth Jason. this quarter. pricing regions,

higher in fourth revenue the in million increased year XX% million in or to flowable in fourth decrease beginning increase quarter overall quarter an as well AmnioWrapX $XX.X and gross year compared $X.X quarter gross period. to XXXX profit Operating prior XX% volume products. million expenses XXX% as sales Gross higher-margin The of to the sales of the margin cost the $X.X quarter. from prior increased of margin resulted primarily was of in for net comparable revenue net for the fourth compared

owed net loss primarily of of was Net year fees expense $XXX,XXX ended for distributor for AmnioWrapX. a service to December was operating to prior X XX in $X.X by the million period. XX, compared loss the comparable our months driven increase The

reach the December million XX months XX or $X.X net million 'XX. to of CMS, for was publishing $XX.X by the fourth the price driven the for enabled XX, in ended sales primarily compared revenue months to 'XX, XXX% a by this increased to XX, quarter December AmnioWrapX patients. increased The ended the launch nationwide million XXXX For in of $X.XX in by product and increase which national of

of or $X.X million revenue $X.X revenue Gross the ended year for compared prior increased quarter. million for XXX% year profit months months gross XXXX compared ended profit XX million months net XXXX. million period. million by was increase $XX.X the from year XX% million Operating the prior for by to Gross AmnioWrapX ended the for to The resulted of $XX.X the increased to XX December the margin December primarily fourth of period. XX expenses comparable XXXX or 'XX for sales the in for to volume increased $XX.X comparable in in XXX% XX% higher-margin net versus $XX.X

other for fees operating expenses, increases owed by in is onetime marketing $X Total expense Prior of XX additional share-based service $X.X count, a the related XXXX, compared of XXXX of additional AmnioWrapX. The and year months million in to or compensation to driven increase our included XX%. was to distributor a head primarily expenses $XXX,XXX ended decrease for of of months restructuring charge the other million December the debt. $X.X million XX expense

continues period. compared was share million $X.X to to to Net XX, $X.XX balance Jason. ended back December company will or The We or sheet. its during $X.XX debt converted loss turn per for I the now prior XXXX, stock for year the XX $X.XXX XX months over into $X.X million per strengthen share of months comparable common ended call the million the XXXX.

Thanks, Mike.

Revenue just adjusted expectations Mike representing exceptional XXX% and full delivered for a to increase mentioned, surpassing reached X,XXX% and our profit of more. another EBITDA revenue the gross the As $X.X quarter. quarter the of experienced notable for XX%, year. quarter margin XX% rose Moreover, for yet our we million, once

various instruments our and financial we to capital to raised year, equity During standing. converted the overall debt enhance

now all strong and ASP The commercial we just culminating in XXXX. highlighted. Throughout performance XXXX, moving of steam beginning with as full fourth the to in improved results QX, pricing of in the is regions national demonstrated full launch MAC we've access consistently AmnioWrapX ahead quarter

confident fully our capable to future we also build are rates maintain momentum on capitalize exceptionally business Looking the confident that well company am plan that we the well as to robust the ahead, will medtech company. these execute a positioned into as strategic success. growth sustaining of I is this we this

for care pediatric. sciences an standards is sales regenerative added we're conclusion, Sean outstanding already McCarrey as extensive and great medicine, congratulations He's XXXX and for would quarter XXXX closing in like an their fit for Commercial diverse transforming BioStem to background care the the end, proven outstanding of and team entire BioStem, and we express such that I a fields Officer. year. In a with wound leader life from in contributions. performance benefiting as To to January, out in my his fourth the gratitude Sean Chief

exceptional steps company significant into for BioStem Throughout the our have an industry. we past year, that transforming towards sets the taken standard

we steadfastly of our excellence. I collaboration individuals making anticipate products as to journey. committed to pride grappling still that impact have thus which change the While in audience. to all, our in our much We progress next from embark undeniable a our it's remain to And strive work Above the serves far. phase with lives, daily chronic there's lives as I positive with immense questions our and on of wounds. be takes that, the eagerly made motivation manufacture invite that meaningful we're countless done, for we team continued acute the mission

we [Operator Instructions] Sorensen Zacks Brad Research. our first question And from Small-Cap will with take

a great one expand I looked and did for see. it deal I've OTC I bit. problem product, I'm of concern But you're about anything, kind Jason, just or flagged a about bit. to I little just talked them has yes, wonder big don't wondering problem there. is that your year. stock if And a quarter, that on it and talked to -- could have of of it you of with? out it's And has what but that OTC Or what is stock Great kind doing? we And what's And is a just you've yours? great course. little Good at know a just with the question, if something promotion what their

Jeff call Ramson, Actually, to hand representative over on the I'll our it IR today.

keep and but on Sure, in days, confusion happy that's sure. OTC posted. out have you next I content on There's I'm markets you little that. out some should few yes, Brad, Yes, to there, the a with we And with would are that separately Thanks, working interact we bit Jason. of sorted say.

just great. deal. Okay. Yes, any I be wondered road? want maybe it down and anybody point? further mean big if any at just just domestic market, mark, in. thought didn't far concerned. real is this investors consider other Is huge there big was you're making is then, didn't that it, the would think Yes, some But be Jason, question going road I of international down at going I even point? one too red strides the Or seen I that to quick have

Thanks question, ex definitely to We've U.S. business. in had for inquiries regards the Brad.

setting. HOPD lot We U.S. an well keep AmnioWrapX or have as we to the through there demand our U.S. outpatient trying currently VENDAJE in with have up now to ex working and the opportunity hospital as right on is regards definitely a in that But plate business

now peer know Japan our U.S. to specifically. opportunity focused really trying U.S. our is of in definitely core is It's Biomedix is there ex commercialize And just product biggest right right currently think now. I focus I

have, And business nice problem yes, a quarter great and domestically. to too much

our next question (TRADING). we'll Barton Greg IN with And take PLACE from

product expand your please one after Jason, insight to can have I your that. us give you portfolio? And plan into more then question further and diversify

Sure. Thanks, the question. Greg. Appreciate

wound call medicine we're care are regenerative products. as company. to we in we're regards for sit is opportunities a potential to We expand And potential the statement what typically, in today, other looking -- our you see

of to substitutes. a skin for be to the from introduced. care of out lot at all products way the a Looking continuum biofilm patient opportunity There's for

the of Right we're side really on substitute now, highly focused skin the equation.

too, to I adding at to members as kind help think to grow that best opportunities our also look continuum contribute products work team or and for that to the there's care. their And products bag commercial of to with physicians our of we clinicians at opportunity So strategically an our either sales to access. team have the us build offer then

our expand we that can for and portfolio medtech product side not bag products market. just the in things looking skin add specifically substitute actively we're to the of more So also the towards and

risk Last to great. That's current be what to consider do you right. the your question growth is trajectory? All

our inherently and I current there's products. on specifically. right clinical to the market. going to our trial payers which we're right is mean coverage. payers focused mix continue I payer a heavily beneficiaries. population, our in regards hopefully Medicare on now, that to Medicare looking commercial diversify now, look commercial EFU our We're get of think heavily on lot and to And expand cover that focused are In -- come products get patients the heavily core enroll to hopefully to sales CMS we're some We're actively to patient

business. the to is regards So risk the trying payer risk deleverage the probably somewhat biggest to profile currently to in

turn at Jeff over more And phone webcast the now for there are Ramson call questions any will this received. time. Mr. I to no questions

Ashley Mike, any uplisting can one talk -- Capital. provide have more do the ProActive about We , question you clarity to on NASDAQ? [indiscernible] you can from

Sure. Sure.

everybody there's a external. involved call this in as and are So lot on factors internal knows, of uplifting that

so to company. become the with the point and I company place real -- public at speaking placed right now a good infrastructure from a And the an personnel think internally, in we're uplisted perspective,

The is second factor right? condition, really to is what market look at this the

like of inflection showing it point improvement. markets this of I a out at point. the are company control. We're the our Some with feel is at good capital

year to and goal feel the this try kind has to caveat if that to uplisted with got or this condition I would had the thing of like sometime say, So the be market get right. to I be my

know just So an out it's are time, of right the for things don't control year. the right but uplift some other some helps. of that of right assuming that I the type I market company, or the listing is if think

written no. question Great, right only have That's we great. Yes. No, actually the now.

there's we're good I more. one else has anyone think unless there more. any Wait,

No, that's think it. I

this gentlemen, and conference participation. call, you And thank ladies your for and we will conclude today's

You may now disconnect.