Milestone Scientific (MLSS) 15 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to the Milestone Scientific Second Quarter 2024 Financial Results and Business Update Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. David Waldman, Investor Relations of Crescendo Communications. David, the floor is yours.

Jenny. you, Thank thank XXXX and joining Scientific's Milestone Good Results you Conference Quarter Financial Call. Second morning, for

On the Finance call Executive with us today are Keisha Vice Officer; Arjan Harcum, President Scientific. of Milestone and Haverhals, Chief

financial a issued on morning quarter also release The results, website. company is press which company's containing this second XXXX the posted

prepared questions financial company's call, please have like operational Communications Crescendo If management contact the ended information now (XXX) additional second the any June at you The remarks any results for after XX, the XXX-XXXX. and will provide company, reviewing about quarter the XXXX.

impossible get like impact revenues a success. risks economic, These business statements started, regarding of Before to all are respect its on uncertainties Milestone's and everyone based beyond number we many future Milestone's forward-looking conditions call, or and future are predict and judgments financial which decisions, and control. assumptions with implement we'd expected of involving that conference during of plan, which involve this and to timing make competitive statements of ability accurately remind are may we market to to and business and future difficult

customer or the XX-K important XXXX. developments, economic year XX-Q second time December revenue Milestone's from cause Securities differ could factors Exchange those limitation, market Milestone's in ended legal and pressures, the for standards our are and and on changes Milestone's in without and conditions, factors the Form for June with quarter growth, requirements on patent ended and periodic statements actual Commission, filings to time FDA the indicated competitive risk adverse XX, the results of XXXX, from Some failure Form rulings, and that the XX, to expected by report detailed including forward-looking general to materially report achieve expenses, changes operating pressure

obligation to the now call statements Chief reason. August during any publicly XXXX. revise made to no forward-looking statements this that, go over today's Arjan date, or management's for Please are turn Arjan. XX we'll as Milestone call belief upon ahead, Haverhals, of update undertakes forward-looking Officer. based any These reasonable Executive With

Thank for system. company, recently This major grant year we everyone achieved momentous to today. for milestone B Epidural and you, assignment joining a of been the as with has physician a for Part David, our Medicare payment rate thanks CompuFlo the us

payers have to reimbursement by the ruling. pricing we technology understanding has methodical educate predictability, utility, able MAX, our As the thoroughly with closely that to have we with necessity also efficacy and jurisdictions, our medical known reported, contractors, J approach We've strategic. full the Medicare on to and and clinicians been ensuring technology, as of prior been to of previously the our safety, worked Medicare clinical CompuFlo jurisdictional document system, administrative engaging their

granted price Colombia Texas, approximately X/X the achievement. An conducted are New Medicare JMAC injection Epidural Arkansas, for the jurisdictions, across multiple procedures for chronic treatment. Maryland, of pain Colorado, of year including X procedures Delaware, Jersey, significant such X each estimated District in across Mississippi, these steroid favorable key accounting total States Pennsylvania, Louisiana, Mexico, This epidural back injection steroid performed million the regions states New a assignment as represents and Florida, Oklahoma, United

across rest patients to introduce also of throughout our is forward but work outcome major a from benefits [indiscernible] country. jurisdictions of Medicare step of among of more regions there's increasing represent With and believed for still and initial our technology, penetration these in technology. the We safety Medicare volume, clinical an to adoption million of only a alone. technology these our the approximately account of $XXX recognize the ahead positive practice The to market significant XX% up this not addressable validation these

in our point this turning targeted to crucial team continuing a proud marks and committed at U.S. to who milestone tirelessly I'm our reach are our achievement extremely efforts in have we journey. this entire additional worked of However, the [indiscernible]

In to whose represents within disciplined announce Jersey, expanding laser-focused of the in partnership and strategic to to partner. extensive are with key our reach commercial deep tandem sector, by an states Actual New relationships Axo's This Biologics, and with excited relationships the Florida. established and Texas a approach experience pain leveraging them we make collaboration this our clinician progress, [indiscernible] belonging the ideal management

a drive sales adoption System next growth aligning and confident that of collaboration our Epidural our patient will instead of and strategy, own partner more it the of building with outcomes. CompuFlo effectively. a This of large and sales enhance we the accelerate we specialized penetration marks By force, the distributor can phase are

We there a for believe federal agencies. other within is and CompuFlo market government also opportunity

As discussed to working approval the and we we advancing following past, are secure federal have the in initiatives approval SAM supply schedule. the within FSS,

market. government open FSS would approval the sizable up

the international to front. Turning

our CompuFlo. We expanding for distribution partners of network are

announce thoracic paretic with and relationships distributors Surveillance key independent proven and global Epidural Health of received targeting I'm to their system are spine. track devices the markets covering have we particularly Agency to market approval existing Brazil, regulatory and medical CompuFlo National introducing that Brazil's of pleased records the We territories. within in the junction cervical sell within lumbar, the from

this cooperation the Brazil, relationships a economy significant to for Brazil partners product presents the largest in setting Ahead and look for over stage near medical we've the ongoing successful and with commercial future. approval, leading globally, hospitals Final with and negotiations the launch. of are new in million forward institutions us. proactively announcing As people, the key ninth opportunity XXX established we

suffering chronic X.X births people and XX each year back million has from pain. over million Brazil

limited X in Independent that with areas traditional epidural million and seeking in safer we estimates resources that X partners, a procedures performed However, Epidural believe to right the treatment. training. million with research market the just with especially can by We XX% addressable alternative annually expand anesthesia are offering procedures, rural Brazil. to

strategy, also a Brazil approval in global South The the Latin an point entry America in into expansion previous FDA and our building our on in United is by milestone providing significant States. approval

portfolio. our of for and protection value multiple Europe U.S. patent property around our focused the We and IP of delivery injection systems. remain that key allowance patent receipt both and we on intellectual the broaden applications of notices drug in announced the increasing recently Lastly,

look that patients So of the build to further summarize in our benefit and the and advancing to to technology. our Medical as updates and progress and nationwide are it from strategy. and abroad. practitioners commercial safety initiatives we continuing rollout a division, more on momentum, ensuring precision providing reimbursement relates disciplined both our the this We to forward U.S. executing

U.S. is million platform. process $X.X distributors to ability second decision line previous last more in-house, the division, strategic of to able direct Dental of our our sales the from we've bringing e-commerce enhancing and preferences. This growth quarter communication $X.X to during to online increased to to their our of transition direct year. result this a period needs Turning million respond same in compared and own been create XXXX, with instead our By sales our to through channel a customers, our our

more XX% the which margin not in to only a of has year, This increased year. the in reflects cost also from the quarter XX.X% gross margins, we our second quarter improvement same have led expansion shift efficiencies to in this last team. significant gained, This service customers steady our will products sales. believe that our the we on support foundation also the have established to reliability the our by importantly, place of continue in that domestic and after quality, but provided sale the We growth value

online directly reach portal. designed to on been by targeted bolstered focus both of e-commerce has patients, campaigns and marketing renewed Our through benefits reinforcing our the purchasing customers

to continue refine U.S. efforts, we traction to market and see expect in increase the we expand As further these and shares

some due resolved, issues distributors' On allowing freight forwarders, our have the since and normal with international us operations. temporary front, these did while we been stabilize to to resume challenges encounter

reassessment Additionally, based sales our had our in impact to China comparisons. market year-over-year that the our post an in on strategy of proactive decision on

Nevertheless, year. international half and improvement both of half in last the this currently over half second believe of year of we second show that first sales year will this the

the our The for model is Dental flow. we scalable, business. about positive Looking ahead, strengthened have changes are laid designed implemented future high-margin our operations, business cash we not have that also foundation optimistic generate the to only have current but a of

profitability We our continue yield results, growth, to driving in strong will satisfaction customer the come. are and approach confident that to years and quarters

and are a inflection payment safety rate that the up, technology. at milestone the the point first CompuFlo pivotal underscores we a to of B value wrap Pipe our of following Epidural our System, grant assignment So physician Medicare for

remain momentum. committed us The combination build as driving growing shareholders our as Dental commercialization, expansion enhancing division Biologics, outcomes value we partnerships e-commerce ingredients patient our well with key Brazil, for of such necessary the Actual like our the start provide as We as to into success. of for continue the markets for reimbursement and platform to this strategy, on our

like call time, Finance, I'd At to the President, Please Keisha Harcum, Keisha. to over go detail. financials the this ahead, in go Vice over turn to

XXXX for XX, Thank e-commerce compared months XXXX, you, XXXX. $X.X million million and X U.S. XXXX, XX, the $X.X revenue approximately June approximately the months months was and respectively. June the ended was Arjan. ending million, XX, for million, The to $X.X X Revenue ended $X.X X for June

second the $X.X to the issues versus XXXX. ]. for was quarter. quarter XXXX, X due XX, approximately for of or the the XX% International of The decrease second was revenue X X for of a XX, $XXX,XXX XX, International months China million approximately compared [ June For the quarter gross The June or X% XXXX, company forward ], XXXX. XX, decreased recorded June XX, ended for ended June of months carriers revenue for June $XXX,XXX freight profit compared revenue ended June XXXX XXXX, months $XXX,XXX revenue to during the [ $X.X million XX, ended to ended no sales

in XXXX, associated months sales. decrease The the versus a XX, by by quarter higher offset e-commerce $X.X of was launch million profit million with platform, to expenses operating gross approximately due June losses for The selling sales general in and reflects ending X in second the a loss decrease the for June the administrative reduction the in $X.X in Operating international margins XXXX. million. the ended $X.X XX, was decrease

period ] net Net X XXXX. XX, June for XX, versus XXXX, losses. comparable XXXX, of a $X.X income approximately June for income in the X% the share Net million or Jersey months of expenses or for [ the [indiscernible] sales included for per X loss operating ended million $X.X approximately New the ended months $X share was net million per

X X For $X.X $X.X and revenue the and for June compared and million service million, months XXXX. XX, XXXX, digital approximately XXXX, ended to U.S. million the e-commerce million, $X.X $X.X XX, respectively. at revenue XX was approximately months ending June The was June

for decrease a million, freight months June $X to X ending due International of during XX, decreased X months no revenue The International X with June the was $X.X sales for to recorded $XXX,XXX XXXX, months X XXXX. issues to for For months. XXXX, ending XX, compared XX, company million revenue June approximately carriers XX, the compared approximately June forward XXXX. the China the ended

in X revenue $X.X of for million loss the was XX% months first of approximately loss months for versus first of the X million share XXXX million the million $X.X of for for first $X.X of $X.X first X the XXXX period of profit or X XXXX. was for XXXX of or per ending $X.X XX% versus $X.X share was net for or months the months Gross XXXX. $X.XX Operating X comparable for the losses first million of versus million or a $X.XX the X months months XXXX. per revenue Net

Now liquidity I'd attention turn the the resource. capital your like to and to

solid and XXXX, XX, continue balance no manage long-term sheet. to cash cash At had of working carefully maintained capital $X.X and the June million expenses $X.X debt. million equivalents of a to We approximately company and have

the this Arjan At call Haverhals. I over to turn will point, back

and us XXXX, you. And capital. balance to we cash outside of our cash we provides maintain the support divisions equivalents mentioned, Keisha Medical June of a $X.X continue sheet growth resources sufficient within for additional believe Dental as which at the need without strong XX, and approximately both supporting million as with Thank hand

administrative improved year, cash aligning our flow taken over have and to with same our to positive general margins, gross achieving by period addition goal notably, compared operations expenses reduced across the the In last organization, million company-wide. of steps us to further we further $X.X most streamline we selling,

you sales fronts. for believe help an on division joining reimbursement in reporting platform thank we developed to coming and further to have look as efficient initiatives and the and scalable years today. we like I'd high-margin we for recurring to both in Overall, forward drive the e-commercial our developments Medical advance the call

would call at point, to to Operator? the questions. And like this we open up

Anthony coming first Your The Vendetti of Instructions] question Maxim is Group. from [Operator

terms to MAC Arjan, Can adoption, discussions you this broadening coverage great agree our starting the at know point? getting but for And MAC drive internal have there, potential to your milestone there's to the a -- then you sales I of in and force for what talk the expand what price coverage? [indiscernible] in Florida? a adoption. I So this means ... the Are in and plans assignment in with the about lot are other

Yes, in I count one Thank asking X question. you questions Anthony. sentence the for

X/X we make always, total me In , in stated annually. Jersey the Florida, like New the [indiscernible] [indiscernible] performed only Texas, it's United that procedures The small the correction. in let the is Company. States epidural Florida, So injection It's a slight Just [indiscernible] of right? and not it's

your expansion the questions, sales pricing, the following So the rollout. and

restricted as show publicly purpose, and allowed regulations, but with reimbursement and is, cannot writing, claims necessity. are when in the by on community, medical send are what we share we rules clinicians the available, price with and the it we the So to investment pricing in is share

addition granted jurisdictions, is So all of which about rate X physician in the Medicare code, $XXX. payment these jurisdictions payment despite the have roughly primary then $XXX, Medicare to

been that after procedures jurisdictions sending-in when procedures, necessary these has is So the documents. claims ESI and the our by fee granted the is that technology used for

the would question company. and sales your mean expansion about what So force for it

focus strong execution. our I So in keep mind, have everybody been doing, is what and we

relationship I if have release, Jersey able Florida We patent On have and the August the July the finally had of XX, time myself, Biologics. XX, we with team, at and line, been pretty on I'm including been July announce negotiate had able what proud to look to So, perform. Actual the Texas. on X New the got we XX, on first July release, we

step So able forward, make for to been everything commercialization. tremendous a in preparing X have weeks' time, the we in

specialists we In addition, have means been team the expanded can we and towards doing why service about we we that our and we clinical that and technology, insight partners. service train know our have clinical what know-how we is have specialists because own X commercial

same the trained we the of at So Biologics. have representatives Actual time,

clinicians have approach are we to with have XXX to The larger in larger to do in Big meaning I return. and is really minimum what as so consumable up that year, consumables problem, year right institutions, that of call a range Strategy, we the We that XXX sales the a on to are set in been not the per that say, of contact lawyers to commit focusing a reasonable sales agreement, focusing of sort XXX, is number per Fish and

price. will instruments We a the not high sell at

for payback is or of a it the the a So actually equipment sort on cost capital instrument clinicians. the

an product. interest of course, be not otherwise, these because then would And that purchase to into to account a clinicians, that need $XXX have below there price taking the

on and will a volume clinicians call scale a these pricing discount our are it purchase willing trigger the is clinicians. I dependent that there percentage scheme products, a able then the for that whole to So of

what physicians, XX out, having. say, simple. the pain means revenues, know in know this years is larger our are the look, they inside purpose, very book the I is that And is know the in Now have a all focusing they field. say, know On the They company what it more they not fairness, than players, bring chains, I would business experience almost market. of it of plan for business. at on They what we

and currently the are they bring the engaging client customer leasing the Actual and reason and with we because know-how client having. why Biologic that base we not know-how, the are the So that's

-- actually official started this So this rollout. year week, we with the

that like We the commitment. to also positive have I used to that them already clinicians over get confident a on institutions are it's And list be of disciplined get I'm that we we And very able have commercial a at. launch. said, that and longer-term targeting technology will

revenues. Now the up question come will about

course, all the I statements. will hope revenues able that can, will I me, what make and in have on we know that's are not this third year. quarter and the be we that of You sincerely my But working fourth for forward-looking any style, we to

what little contributions depends do revenue to we it and think and foresee because be will on a I get say I That's on to -- it's bit the first year. tricky But going that clinician feedback, sales on depends feedback. this that institutional is the the goal. it sell the

at are We're we comfortable we get And that done are. in a selling detail. have and the but let's I projections We've first hand with make enthusiastic inventory long think but share we good can we I and started always, I will is making a think in would shape. and then And do it homework. positive in to we as fair the more hours, the next our where ask let's are what work. be, our say quarter comment that

get have Let's that's in to might And Anthony? that first that feedback, adjust question, are first phase in. marketplace, the the the if we that currently needed, does is answer your that pricing be the be we

Arjan. Yes,

if early, maybe little So have that far? yet? been does claims it's submitted look a so, And so like what any but

than close submitted the XXX we since to claims more No, start. or have

said, it jurisdiction. this is, of clinicians have an now, site Now course, we I right? different, Like advisory in don't

clinicians sales we patient process week are that over said, it is get that that Anthony. agreement to doing have payments the start Now I in to that we new launched like the this with these of with get midst pricing, and cases

following update results. an I Okay. like give third early, sounds but right know the it's us you'll That's it quarter

in has question lost -- revenue from China quarter, recovered to we any that shifted be this over there in Or XQ revenue this that I is was in was just shouldn't resolved. it It 'XX there were the was the that sales or that one know the third quarter? will revenue shifting shift the second business. 'XX? lost expect quarter Dental quarter International but XQ to you believe potentially sales XQ, no been Just lost into gears, on

Yes.

meant seasonality, say, what has in say, what all at reasons, internal the I'm second quarter and in Several this been this sales anticipate also the let's the first had I we than the foreseen, year. we concerned second revenues let's just it in this So, of the the planning half seasonality, is year. out out from call, always understand reached Dental year, what course, control. in know lower our about, not quarter quarter we of freight second of I the results to what feedback that quarter lower the But second forward for to everybody that, are mean way a to. issues, that are than distributors anticipated. those we Well, we say actively little were bit a issues fair by

to that packed directed forwarder you $XXX,XXX end by about flavor, of planned picked Just freight the that believed were that had were by dock a of give the or that we quarter, on the is were up to products the the by second be finally distributor.

and So already in shipments the not forth, his products able the packed. days or and specific distributor to back get dock or up the pick forth, packages get that and were month, was to last the her the freight to the forward up X pick and the of to to back

in, for had that would initial as second come as be far other the words, we would then quarter. plans that if in we So the

and our in year. both or I by with statement to will Domestic be third strong therefore, that quarter fourth also very this And quarter improved third the that making quarter that July. the month you the share had has I'm International we of International, sales and can and a

good trajectory there. we a on So are

now back appear the questions for can over comments. be there hand Well, further no queue. in to Arjan any further to I

success company, your in period the what before. Yes. like stated that management for Well, reimbursement that are said, we have first celebrated we internally of all, time of have have I we thank still will We, repeat news. on you the today, as the and we

accessible share out time this And and -- XXX% full any full out are we any to you. directly, and with and couple soon. will We created energy looking commercially you keep case expectations you day. roll able safe that. about the in are have a full support for to questions, or next you have stay will been reach through today. news the on In hearing we thank that to you Have Thank further focus, you. of and aware posted you that forward attention, months to your can always seeing And you me easy, great absolutely

This much. very call. does today's you conference conclude Thank

this you Thank lines You and time, a your disconnect at phone wonderful for have may participation. your day.